The following points summarise the nature of principles of management…

The following points summarise the nature of principles of management:

(A) The principles of management are formed by experience and collective wisdom of managers as well as experimentation.

(B) The principles of management are intended to apply to all types of organisations.

(D) The principles of management are intended to establish relationship between cause and effect.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A), (B) and (D) only

(A) The principles of management are formed by experience and collective wisdom of managers as well as experimentation. — Correct. Principles of management are not laws of nature. They grow out of what managers have seen work in practice, together with experiments such as Taylor’s.
(B) The principles of management are intended to apply to all types of organisations. — Correct. This is their universal applicability. They apply to business and non-business, small and large organisations alike, though to a different extent.
(C) The principles of management are rigid prescriptions, which have to be followed absolutely. — Incorrect. The principles are flexible. They are guidelines, and a manager adapts them to the situation in front of him.
(D) The principles of management are intended to establish relationship between cause and effect. — Correct. A principle tells the manager what is likely to happen (the effect) when he acts in a certain way (the cause). That is what makes it useful for decisions.

NCERT (2026-27 Edition): “Universal applicability: The principles of management are intended to apply to all types of organisations, business as well as non-business, small as well large, public sector as well as private sector, manufacturing as well as the services sectors. …”

“Formed by practice and experimentation: The principles of management are formed by experience and collective wisdom of managers as well as experimentation. …”

“Flexibile: 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. …”

“Cause and effect relationships: The principles of management are intended to establish relationship between cause and effect so that they can be used in similar situations in a large number of cases. …”