Principles of management can be modified by the manager when the situation demands. This statement implies that the principles of management are:

Flexible

The correct answer is option 3- Flexible.

The statement implies that management principles are not fixed or rigid; they can be adapted or modified based on the specific circumstances or situations that arise. This flexibility allows managers to apply the principles in a way that best suits the needs of the organization, the challenges it faces, and the environment in which it operates.

The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to do so. For example, the degree of concentration of authority (centralisation) or its dispersal (decentralisation) will depend upon the situations and circumstances of each enterprise. Moreover individual principles are like different tools serving different purposes, the manager has to decide which tool to use under what circumstances.