Class 12 Business Administration Notes · GSEB
Meaning and Nature of Principles of Management
Meaning and Nature of Principles of Management — understand what a management principle is, how it differs from a technique or a value, and the five features that define its nature. GSEB Class 12 Commerce notes with comparison tables and feature cards.
Last updated: 23 Oct 2026
Notes
A Very Old Idea
Notes — the key lines
- Management is centuries old — Indian statecraft already used it in war strategy.
- Management thoughts are the ideologies and approaches gurus present through evaluation and reconsideration.
- Koontz called the many competing approaches a "jungle".
Management is an activity which is carried out since centuries. When we look up at history, we can see elements of management in various activities. During the rule of Chandragupta Maurya and Chhatrapati Shivaji in India, one can see proper use of management in policy of war strategy respectively.
Several management gurus, thinkers, ideologists and authors have periodically rendered new principles through evaluation and reconsideration of management concept. Thus, the history of concept of management is very ancient and has been changed periodically. From last many years, the ideology of management has been presented through different forms of approaches. Various management gurus from Frederik Taylor to Henry Fayol, Gilbreath, Max Weber, Chester Barnard, Peter F. Drucker and C. K. Prahalad played an important role in rendering various principles to make it as per the era. Harold Koontz has hailed the ideology of management as 'Jungle'.
Select a node to read its significance.
Trap — A "management thought" is an approach, not a principle — confusing the two collapses the whole chapter's vocabulary.
What a Principle of Management Is
Notes — the key lines
- A principle of management is a guide for managers — not a rule, but the sum of assumptions, traditions and experience.
- Principles are flexible because they deal with human behaviour and changing technology.
- They are a detailed guideline for decision making and implementation — capable people are promoted on service years in one unit, on capability in another.
In a business unit some rules and principles might be formed in relation to the human behavior so the achievement of goal becomes easy. These principles are called as the principles of the management.
Principles of management are the detailed and perfect guideline for decision making and its implementation. As per the principle of management the capability of employee could be increased through various encouragements, e.g. to consider his service years to make decision about promotion of any employee, while an employee gets promotion by considering his capability in another unit.
Key Takeaways
- Principles of management are the result of experience: different management gurus have obtained conclusions in different situations and it has been proven practical.
Trap — A principle is not a rigid rule — and not a technique either; the next section exists because students merge the two.
Principle, Technique and Value
Notes — the key lines
- A technique is a set of steps taken to reach a target.
- A principle is the guideline for the decision taken while those steps are executed.
- A value is what is acceptable or preferable — a moral choice, not a method.
It is very important to understand the difference between the principles of management and techniques of management.
| Basis | Principle | Technique | Value |
|---|---|---|---|
| Meaning | Guideline for decisions | Set of steps to achieve a target | What is acceptable or preferable |
| Role | Guides decision making and implementation | Executes the chosen method | Relates to morality |
| Nature | Universal truth and guideline for human behaviour | Practical procedure | Personal or social preference |
| Example | Consider service years or capability for promotion | The steps followed to complete a task | Honesty in dealing with employees |
Trap — Technique is not principle — a technique can be copied step by step; a principle guides which steps to choose.
Five Features of the Nature
Notes — the key lines
- Five features: universal acceptance · flexible · general guidelines · based on human behaviour · contingency.
- Principles are mostly truth, not absolute truth — the rule of exception applies.
- They change because human behaviour and technology change.
Principles of management are not rigid but practical conclusions. These principles are the guidelines to perform a task. This relates to task and reason. Human behavior and the technology are such factors which changes periodically. At the time of implementation of different tasks of management such as planning, organisation and direction, it provides guidelines to the manager for decision making. As per expert opinion, mostly these principles are truth but are not absolute truth. Here, the rule of exception is also there.
Principles of management can be applied to most of the business units. Wherever there is a need of human collective efforts, these principles are required. However, implementation of all the principles may change as per the type, form, activity and size of the business unit, but the principles of management can be applied to the most of business units. Thus, the principles of management are comprehensive and universal.
Principles of management are not rigid conclusions, but they are flexible. As per situation when a manager requires there is a scope for flexibility. When these principles do not seem to match in some situation, the manager is allowed to effect change. e.g. in large units the principle of division of work may be applied uniformly, but in small units the principle of division of work may not be applied in the same proportion.
Principles of management are the result of experiences gained by different experts in different situations. At the time of managing a business unit disparate and complex problems arise. The form of these issues may be different as per the unit, which could not give similar result for each unit in all situations. Thus, the principles of management could not be strictly applied for each unit, but can get desired results by accepting the principles as only guidelines and by using them in a favourable situation.
As human is at the centre of the management, the principles of management may seem to have a big effect on human behavior. Principle of management has direct relationship with the human behavior and as the human behavior is a psychological phenomenon, it is necessary to consider while implementing principles of management.
Contingency is one of the elements to apply the principles of management. Achievement of goal can be made easier by a unit by taking the required decision through usage of these principles in certain unavoidable situations, such as to pay appropriate and reasonable wages to the employees. This criteria of being fair and reasonable depends upon the concern regarding necessity and contingency of the affecting factors.
Trap — "Flexible" does not mean optional — the principle still guides the decision; only its application changes.
Six Reasons Principles Matter
Notes — the key lines
- Six importance points: managerial efficiency · maximum resource use · scientific decisions · adapting to change · social responsibility · research and training.
- They are the bridge into the next topic, which expands each point.
- Use one line per point here; the full explanation lives on the Importance page.
Principle of management is providing guidelines to managers to perform task in different situation. Due to which improvement in functioning of a business unit and gain in managerial efficiency is also seen.
Mostly availability of the human and physical resources are limited in a business unit. It is unavoidable to make its maximum usage. Here, meaning of the word maximum is that to make usage of the resources through principles of management, whereas they can get maximum benefit with minimum costing.
Decisions should be always based on facts, thoughtfulness, objectives and justifiable. Moreover, decisions should be timely, reality based and effective. Management principles provide a key role for taking appropriate decisions. Using management principles, decisions can be made appropriately, timely, without partiality and unbiased.
Normally, management principles are an ordinary guide. But management principles are necessary to meet business environment in changing circumstances.
Business is indivisible part of community. Profit is considered as the aim of the business, but it is not the only aim. Development and progress of society are also aims of business unit. By effective implementation of management principles, business unit can easily achieve aim of social responsibility.
Management principles are main part of management thoughts. Only by using the management principles, task of training, education and development is possible. Like, now aptitude tests are taken for appointments in various business units. These aptitude tests are prepared through research and by implementing and using management principles through which appropriate employees are appointed.
Trap — These six are a preview — do not copy the same six paragraphs onto two pages; the depth belongs to the Importance page.
60-Second Recap
Key Takeaways
- Ancient practice → gurus → approaches → Koontz's "jungle".
- Experience → guideline → flexible → decision and implementation.
- Principle (why) · technique (how) · value (ought).
- Universal · flexible · general · human · contingent.
- Efficiency · resources · decisions · change · society · research.
Exam Questions
Exam Questions
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