What Role Do The Principles Of Management Play In Decision-Making And Problem-Solving In MBA?

What Role Do The Principles Of Management Play In Decision-Making And Problem-Solving In MBA?

What Role Do The Principles Of Management Play In Decision-Making And Problem-Solving In MBA?

Pursuing an MBA is a big step towards advancing your career and achieving your goals. A critical aspect of an MBA program is learning about the principles of management, which play a crucial role in decision-making and problem-solving. 

To pursue an MBA from the best institute, look at the Bansal Group of Institutes. As a leading institute for management and engineering courses, we offer world-class education and training that prepares students for success in today’s competitive job market. 

Here, we will discuss the role that the principles of management play in decision-making and problem-solving. So, read on to learn more!

Table Of Contents

1. Understanding The Principles Of Management

2. The Role Of Management In Organisations

3. The 14 Principles Of Management

4. Application Of Principles In Decision-Making

5. Application Of Principles In Problem-Solving

6. The Link Between Principles, Decision-Making, And Problem-Solving In MBA

7. The Final Say

8. FAQs

Understanding The Principles Of Management

Management refers to coordinating and overseeing the activities of individuals and groups within an organisation to achieve desired goals and objectives. 

It involves planning, organising, leading, and controlling resources to accomplish tasks efficiently and effectively. The principles of management provide a framework for managers to navigate the complexities of their roles and ensure the success of their organisations.

The Role Of Management In Organisations

Management plays a crucial role in organisations by providing direction, setting objectives, making decisions, and solving problems. 

It serves as the driving force behind achieving organisational goals and fosters a harmonious work environment. With effective management, businesses can thrive in today’s competitive landscape.

The 14 Principles of Management

Henri Fayol developed the management principles, also called the “14 principles of management,” which provide valuable insights into efficient managerial techniques. Let’s explore each guide briefly:

1. Division Of Work

This principle emphasises the division of labour and specialisation to enhance productivity and efficiency within an organisation. It involves allocating tasks to individuals based on their management skills and capabilities.

2. Authority And Responsibility

Authority and responsibility go hand in hand. Managers possess the power to give orders and make decisions, but they also bear the responsibility for the outcomes of those decisions.

3. Discipline

Discipline refers to the adherence to organisational rules and regulations. It ensures order and stability, promoting a productive and respectful work environment.

4. Unity Of Command

This principle states that the employees should receive orders from only one superior to avoid confusion and conflicting instructions.

5. Unity Of Direction

Unity of direction emphasises the importance of aligning individual and organisational goals. It ensures that all activities and efforts are directed towards a common objective.

6. Subordination Of Individual Interest To The General Interest

Individual interests should be subordinated to the greater good of the organisation. This principle encourages employees to prioritise the company’s overall goals over personal ambitions.

7. Remuneration

Fair and equitable remuneration is essential to motivating employees and encouraging high performance. Adequate compensation helps attract and retain talented individuals within the organisation.

8. Centralisation And Decentralisation

The degree of centralisation and decentralisation refers to the concentration or dispersal of decision-making authority within an organisation. It depends on factors such as the nature of tasks, organisational size, and management style.

9. Scalar Chain

The scalar chain represents the formal hierarchy of authority within an organisation. It defines the line of communication and authority from the top management to the lowest levels of the organisation.

10. Order

This principle emphasises the importance of maintaining orderliness in the workplace. It involves ensuring that resources and materials are in the correct place at the correct time to maximise efficiency.

11. Equity

Equity in management refers to fairness and justice in dealing with employees. It involves treating employees impartially and providing equal opportunities for growth and development.

12. Stability Of Tenure Of Personnel

The stability of tenure aims to provide job security to employees. Employees who feel secure in their positions are more likely to contribute their best potential efforts to the organisation.

13. Initiative

Encouraging employees to take the initiative and exercise creativity fosters innovation and continuous improvement within the organisation. Managers should value and support employee initiatives.

14. Esprit de Corps

Esprit de corps refers to the team spirit and unity among employees. It creates a positive work culture, promotes collaboration, and enhances organisational performance.

Application Of Principles Of Management In Decision-Making

The significant applications of the principles of management in decision-making are:

1. Role Of Principles In Rational Decision-Making

The management principles serve as a guiding framework for managers in decision-making. By considering these principles, managers can make rational and informed choices that align with organisational objectives and values.

2. Principles As A Guide For the Decision-Making Process

The principles of management provide managers with a systematic approach to decision-making. They help evaluate alternatives, assess risks, and consider the impact of decisions on various stakeholders. 

By following these principles, managers can make well-thought-out decisions contributing to the organisation’s overall success.

Application Of Principles In Problem-Solving

The management principles offer a structured framework for approaching and solving organisational problems. They provide a systematic way to identify, analyse, and resolve issues, ensuring that concerns are addressed effectively and efficiently.

Benefits Of Applying Principles In Problem-Solving

Applying management principles in problem-solving allows for a comprehensive understanding of the problem and its underlying causes.

It promotes a systematic approach to finding solutions and encourages collaboration among team members. By utilising these principles, MBA students can develop practical problem-solving skills essential in the business world.

The Link Between Principles, Decision-Making, and Problem-Solving in MBA

In MBA education, management principles form a cornerstone of the curriculum. Understanding and applying these principles helps students develop critical thinking, analytical, and decision-making skills necessary for managerial roles. 

MBA graduates can tackle complex business challenges with confidence and strategic insight by integrating these principles into their problem-solving approach.

The Final Say

Management principles are an essential foundation for MBA students to understand decision-making and problem-solving in the business world. Students can apply these principles to their decision-making processes and problem-solving techniques by mastering them. 

The 14 management principles provide a framework for managers to develop strategies that optimise their company’s performance and achieve their goals. 

If you want to seek an MBA programme and learn more about applying these principles in your career, consider call now for MBA admission in Bhopal at Bansal Group of Institutes. The expert faculty will guide you through the process and help you advance your education and career path.


1. How do the principles of management help improve decision-making?

The management principles provide a structured approach to decision-making, considering various factors and ensuring alignment with organisational goals. They help managers make informed choices and minimise the risks associated with decision-making.

2. Can management principles be applied in all types of organisations?

Yes, management principles universally apply to all organisations, regardless of size or industry. While the implementation may vary, the underlying principles remain relevant.

3. How can management principles enhance MBA students’ problem-solving skills?

By providing a structured framework for problem-solving, the management principles enable MBA students to analyse problems systematically, consider multiple perspectives, and identify practical solutions. Applying these principles in problem-solving exercises enhances critical thinking and decision-making abilities.

4. What is management work?

Management work involves overseeing and coordinating the activities of a team or organisation to achieve specific goals. This can include planning, organising, staffing, leading, and controlling resources to ensure that objectives are met efficiently and effectively.

About BGI

The Bansal Group of Institutes offers various engineering, management, and nursing courses. It has the best and top-placement colleges in its various campuses across Bhopal, Indore, and Mandideep. With credible faculty and well-equipped laboratories, BGI ensures a top-notch learning experience. 

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