INTRODUCTION TO POM

The principles of management are in the form of pre-determined solutions for

repeatedly occurring problems. They guide the manager. It is very important for
every manager to know them thoroughly. The importance of the principles of
management becomes abundantly clear from the following facts:
(1) Provide Useful Insight to Managers:
The principles of management were developed on the basis of the experience of
various professional people. The principles make the manager aware about the
manner in which he should act in various situations so that he does not repeat
the mistakes of the previous managers.
In this way, timely guidance reduces the wastage of resources and the objectives
can be achieved in a less expensive manner.
For example, according to one principle of management, i.e., division of work, a
job is divided into many small units. Every unit or part is assigned to different
individuals. Each individual does the same work repeatedly that has been
assigned.
He gets used to it which helps him to perform his job efficiently and quickly.
Consequently, the entire job is completed in an economical manner.
(2) 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.

According to the principle of unity of command there should only be one boss
for an employee at a time. In case there is more than one boss, the employee
will not be in a position to work properly. Consequently, human resource will be
wasted.
Therefore, if we desire to use the human resource favourably, this principle has
to be adopted. Similarly, many other principles ensure favourable utilisation of
various other resources.
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. For
example, the principle of authority and responsibility advocates granting of
sufficient authority, while the principle of scalar chain advocates making
adequate provision for providing information.
(3) Scientific Decisions:
A scientific decision means a balanced decision. The principles of management
provide the necessary training to the managers so that they can take
scientific/balanced decisions. In the absence of these principles the managers
have to adopt the method of trial and error.
According to this principle, one is expected to do a job in a particular manner
and if there is some error, some other method has to be adopted. In this way, the
work is done in different ways till the error is eliminated. This method is not
proper.

Therefore, the managers are trained with the help of the principles of
management which makes them capable of taking scientific decisions. For
example, the principle of authority and responsibility tells us that if a
subordinate is entrusted with some responsibility, he should be allowed
sufficient authority to accomplish it. Only in such a situation a subordinate will
be able to take a scientific decision whenever needed.
(4) Meeting Changing Environmental Requirement:
In modern times only such a business unit can remain alive and develop which
can keep pace with the rapidly changing environment. In every field of business
activity (production, marketing, etc.) new techniques are emerging every day.
Managers who can understand the changing situation well in time can alone
face competition successfully. The principles of management enable the
managers to face this challenge.
For example, the principle of unity of direction tells us that all the activities
connected with the attainment of the same objective should be completed under
the direction of the same manager.
In doing so a manager would be able to have the detailed information connected
with the limited activities being done under his direction. In case the activities
connected with different objectives are being done under the direction of one
manager, he will not be able to understand the changes being effected in any
activity.
(5) Fulfilling Social Responsibility:
The principles of management increase the efficiency of the managers and
enable them to fulfill their social responsibility. More efficient managers can
make good quality products at reasonable prices available all the times.

For example, the principle of Fair Remuneration advocates appropriate

remuneration to the employees and helps in fulfilling responsibility towards
them.
(6) Management Training, Education and Research:
The advantages of the principles of management encourage the researchers to
bring in more improvement in them. The attitude of the managers has molded
itself in such a fashion that they are doing, consciously or unconsciously,
something new.
It means that the managers have come to acquire an attitude tilted towards
research and development. This has helped the managerial knowledge to be
more solid and scientific. The principles of management are actually providing
education and training to the managers by enriching their theoretical and
practical knowledge.
For example, in order to take advantage of the change of attitude among the
managers, various big companies have established Research and Development
Departments in HRD. Consequently, many new techniques have come to light
in the field of marketing, production, finance, etc.