Chapter – II

Principles Of Management
(2+5 =7-marks)

What do you understand by principles of management?

• They are statements of fundamental truth
• They provide guidelines which help management to take decisions and action
• They are derived by observation and experimental studies
• They establish cause and effect relationship

How are management principles derived? – 3 marks

Management principles are derived by observation and experimental studies as follows:

Observation:

Management principles are derived by observing and analysing the events management have to face in actual practice. For example the principle of division of labour was derived after it was observed that dividing the work based on the workers’ knowledge and experience, resulted in improved performance.................