The following points summarize the nature of principles of management…

The correct answer is Option (4) → A, C and D only

A. Universal applicability — Correct. The principles of management are meant to apply to all kinds of organisations, business and non-business, small and large.

B. Formed by practice and Science laboratory experiments — Incorrect. The principles are formed by practice and experimentation in the real world of business, from the experience of managers. They are not results of laboratory experiments, as the laws of science are. Management deals with human behaviour, which cannot be tested in a laboratory.

C. General guidelines — Correct. The principles are guides to action. They do not give a ready-made answer to every problem, because each business situation is different.

D. Cause and effect relationship — Correct. The principles tell what is likely to happen when a principle is applied. For example, when authority matches responsibility, the work is done better.