A proper understanding of management principles is necessary because of the following reasons:
i. Provides Useful Insight to Managers: The principles of management were developed on the basis of the experience of various professional people. The principles inform the manager about the manner in which he should act in various situations so that he does not repeat the mistakes of the previous managers.
ii. Optimum Utilisation of Resources and Effective Administration: In every organisation physical (material, machines, money, etc.) and human (manpower) resources are used. The function of management is nothing but to put them to optimum use or avoid wastage of resources. And it is possible only when a manager makes use of the principles of management. The primary need of every organisation is that its administrative system should be effective. Only that administrative system is called effective where the managers can take balanced and quick decisions. In order to take such decisions, sufficient information and authority should be available. This is made possible with the help of the principles of management.
