Justify the following statement. Management principles are helpful in optimum utilization of resources.

Justify the following statement.

Management principles are helpful in optimum utilization of resources.

Solution: 

(1) Materials or abstract qualities that a person or organization uses to perform the work are called resources, e.g. tools, stocks, time, employees, etc. In every organization, two types of resources are used and they are

(i) Physical resources such as material, machine, money, etc. 

(ii) Human resources i.e. manpower.

 

(2) The different types of resources are used in the organization to manufacture or produce different types of goods and services. The resources are scarce in relation to their demand and therefore resources should not be wasted and misused. They should be used carefully and up to their optimum capacity.

 

(3) The basic aim and function of management are to make and maintain proper balance and allocate these resources by putting them to maximum possible use and control on wastage of resources. Through the use of different techniques and management principles, management maintains discipline and a healthy working environment to establish a cordial relationship with the employees.

 

(4) It helps to increase the efficiency level of employees and to manage the administration effectively, e.g. use of modern and standard tools and machinery. It also helps to increase quality, productivity, and level of efficiency of human resources.

Balbharati Solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 1: Principles of Management

Chapter 2: Functions of Management

Chapter 3: Entrepreneurship Development

Chapter 4: Business Services

Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business

Chapter 7: Consumer Protection

Chapter 8: Marketing