Micro Economics and Macro Economics.

Micro Economics and Macro Economics|Who first used the word "Micro"?  Meaning and Definitions.

In the previous blog. We have already discussed Meaning and Emergence of Economics. If you haven't read. Click and read.

Meaning of Economics.

Now in this blog we will discuss branches of study of Economics :
1. Micro-economics
2. Macro-economics.

The term micro economics and macro economics was first used by a Norwegian economist, Ragnar Frich in 1993.

Meaning of Micro Economics.

The English word 'Micro' is derived from Greek word 'mikros' which means small. 

Micro Economics is that branch of economic science which studies individual economic units like an individual household, Individual family, individual firm. individual industry, pricing of a firm, wages of a worker) profit of an entrepreneur and the like. 

In other words, micro economics deals with a small component of the national economy of a country. It studies the economic behaviour of the individual unit rather than all the units combined together.

Micro Economics has been defined by various economists but hear I am giving you only one definition.

1. K.E. Boulding- "Micro-economics is the study of particular firms, particular households, individual prices, wages, incomes, individual industries and particular commodities."

Meaning and Definition of Macro Economics 

The English word 'Macro' is derived from Greek word 'Makros' which means large. 

Thus macro economics is that branch of economic science which studies economic issues at the aggregate level or at the level of whole economy.

In fact, it is a study in aggregates. It deals with the behaviour of not one particular unit but of all the units combined together. It is a study of economic system as a whole. It studies the overall conditions of an economy, say, total production, total consumption, total saving, total investment, national income, level of total employment, general price level, balance of payments, quantity of money, public expenditure, public revenue, taxation, government budget, monetary policy etc.

Definition of Macro-economics

K.E. Boulding- "Macro-economics deals not with individual quantities but with aggregate of these quantities, not with individual incomes but with national income, not with individual prices but with price levels, not with individual outputs but with the national output."

लेखांकन की शब्दावली। Accounting terminology in Hindi.

लेखांकन की शब्दावली (Terminology of Accounting)

लेखांकन के अन्तर्गत कुछ विशिष्ट शब्दों का प्रयोग किया जाता है। इस विषय से सम्बन्धित इन शब्दों का विशेष अर्थ होता है, जिन्हें स्पष्ट कर देना आवश्यक होगा। कुछ प्रमुख पारिभाषिक शब्द निम्न है:-

1. व्यवसाय (Business)- ऐसा कोई वैधानिक कार्य जो आय या लाभ प्राप्त करने के उद्देश्य से किया गया हो, व्यवसाय कहलाता है। 'व्यवसाय' एक व्यापक शब्द है, जिसके अन्तर्गत व्यापार, उत्पादन कार्य, वस्तुओं या सेवाओं का क्रय-विक्रय, बैंक, बीमा, परिवहन कम्पनियाँ आदि आते हैं।

2. व्यापार (Trade)- लाभ कमाने के उद्देश्य से किया गया वस्तुओं का क्रय-विक्रय व्यापार कहलाता है।

3. पेशा या वृत्ति (Profession) : आय अर्जित करने के लिये किया गया कोई कार्य या साधन, जिसके) लिये पूर्व प्रशिक्षण की आवश्यकता होती है, को पेशा या वृत्ति कहते हैं। डॉक्टर, वकील, शिक्षक, इंजीनियर आदि द्वारा किये जाने वाले कार्य को पेशा कहते हैं। 

4. व्यावसायिक सौदे (Business Transactions)- दो पक्षों के मध्य होने वाले मुद्रा, माल या सेवा के पारस्परिक विनिमय को व्यावसायिक सौदे या लेन-देन कहते हैं। माल का क्रय-विक्रय भुगतान का देना या लेना आदि आर्थिक क्रियाएँ व्यावसायिक सौदे कहलाते हैं। 

ये सौदे व्यवसाय व्यवस्था में तीन प्रकार से प्रचलित हैं-)

(1) नकद व्यवहार (Cash Transaction). यदि लेन-देन नकद अथवा बैंक के माध्यम से तत्काल किया जाता है तो यह नकद व्यवहार कहलाता है। जैसे नकदी माल खरीदना, या नकदी माल खरीद का चैक से भुगतान करना आदि।

(2) उधार व्यवहार(Credit transactions):  कुछ सौदों का भुगतान नियत समय के बाद किया जाता है तो ऐसे व्यवहार उधार या साख (Credit) व्यवहार कहलाते हैं। जैसे- अशोक को एक माह की उधारी पर बेचा गया माल उधार व्यवहार है।

(3) विपत्र व्यवहार (Bill Transactions)- जब माल का क्रय-विक्रय विनिमय विपत्र (Bills of (Exchange) के माध्यम से होता है तो ऐसे व्यवहार को विपत्र व्यवहार कहते हैं। जैसे- रमेश ने सोहन को 5,000 रुपये का माल बेचा। इसके प्रतिफल में सोहन ने रमेश द्वारा लिखित एक निश्चित अवधि का बिल (विपत्र या हुण्डी) स्वीकार किया तो यह विपत्र व्यवहार कहलायेगा।

5. स्वामी (Proprietor ) - व्यवसाय को प्रारम्भ करने वाला व्यक्ति जो आवश्यक पूँजी की व्यवस्था, करता है तथा लाभ प्राप्त करने का अधिकारी व हानि की जोखिम वहन करता है, व्यवसाय का स्वामी कहलाता है। अलग-अलग व्यवसायों में स्वामी संगठन की प्रकृति या प्रकार पर निर्भर करते हैं।

6. पूँजी (Capital)- व्यवसाय के स्वामी द्वारा व्यवसाय को प्रारम्भ करने के लिये जो धन, रोकड़ या अन्य सम्पत्ति के रूप में लगाया जाता है, उसे पूँजी कहते हैं। व्यवसाय में पूँजी लाभार्जन के उद्देश्य से लगाई जाती है। लाभ का वह भाग जो व्यवसाय से निकाला नहीं गया है, पूँजी में वृद्धि करता है। अन्य शब्दों में, सम्पत्तियों

7. आहरण (Drawings)- व्यवसाय के स्वामी द्वारा व्यवसाय से निजी उपयोग के लिये जो माल या रोकड़ निकाल लिये जाते हैं, उसे आहरण या निजी व्यय कहते हैं। आहरण से पूँजी की मात्रा कम हो जाती है।

8. माल (Goods) - माल उस वस्तु को कहते हैं, जिसका क्रय-विक्रय या व्यापार किया जाता है। माल के अन्तर्गत वस्तुओं के निर्माण हेतु प्राप्त कच्ची सामग्री, अर्द्धनिर्मित सामग्री (Work in Progress) या तैयार वस्तुएँ (Finished Goods) हो सकती हैं। लेखांकन के अन्तर्गत माल (Goods) को क्रय, विक्रय, क्रय वापसी, विक्रय वापसी या रहतिया के रूप में लिखा जाता है।

9. क्रय (Purchases) - जब व्यापारी द्वारा विक्रय हेतु माल की खरीदी की जाती है, तो उसे क्रय कहा जाता है। यह खरीदी कच्ची सामग्री या तैयार माल के रूप में हो सकती है। सम्पत्तियों का क्रय, क्रय में शामिल नहीं है, क्योंकि ये पुनः विक्रय के लिये नहीं होती हैं।

10. विक्रय (Sales) - लाभ प्राप्ति के उद्देश्य से जब क्रय किया हुआ माल बेचा जाता है, उसे विक्रय कहते हैं। नकद माल बेचने को नकद विक्रय (Cash Sales) तथा उधार माल बेचने को उधार विक्रय (Credit) Sales) कहते हैं

11. क्रय वापसी (Purchases Return) - क्रय किये गये माल में से किसी कारणवश जो माल वापस कर दिया जाता है, उसे क्रय वापसी अथवा बाह्य वापसी (Return Outward) कहते हैं।

12. विक्रय वापसी (Sales Return) - विक्रय किये गये माल में से जो माल किसी कारणवश ग्राहक द्वारा वापस कर दिया जाता है। उसे विक्रय वापसी या अंतर वापसी (Return Inward) कहते है।

13. आगम (Revenue) - आगम से आशय ऐसी राशि से है, जो माल अथवा सेवाओं के विक्रय से नियमित रूप से प्राप्त होती है। व्यवसाय के दिन-प्रतिदिन के क्रिया-कलापों से प्राप्त होने वाली राशियाँ जैसे- किराया, ब्याज, कमीशन, बट्टा, लाभांश आदि भी आगम कहलाते हैं।

14. व्यय (Expenses) - व्यवसाय में माल, वस्तुओं तथा सेवाओं का उत्पादन या प्राप्ति करने के लिये जो लागत (Cost) आती है, उसे व्यय कहा जाता है। माल तथा सेवाओं की प्राप्ति के लिये भुगतान, व्यय के अन्तर्गत आता है। मजदूरी, भाड़ा, रेलभाड़ा तथा माल के वितरण एवं विक्रय पर भुगतान किया गया वेतन, किराया, विज्ञापन व्यय, बीमा आदि भी व्यय में शामिल हैं। संक्षिप्त में आगम में वृद्धि करने की लागत को व्यय कहते हैं।

15. खर्च (Expenditure)- खर्च वह राशि होती है, जो व्यवसाय की लाभ-अर्जन क्षमता की वृद्धि हेतु भुगतान की जाती है। खर्च लम्बी अवधि की प्रकृति से सम्बन्धित है। व्यवसाय में सम्पत्तियों के अधिग्रहण या प्राप्ति (Aquire) हेतु जो भुगतान किया जाता है, वह खर्च (Expenditure) कहलाता है।

16. आय (Income) - वह राशि जिससे व्यापार की पूँजी में वृद्धि हो, आय कहलाती है। इस राशि को ज्ञात करने के लिये आगम (Revenue) में से व्यय घटा दिये जाते हैं। जो शेष बचता है, वह आय की राशि होती है। उदाहरण के लिये, यदि आगम 25,000 रुपये हो और व्यय 12,000 रुपये हो तो आय 13,000 रुपये होगी। 'आय' एक व्यापक शब्द है, इसमें लाभ (Profit) भी शामिल रहता है। सूत्र के रूप में -

आय = आगम - व्यय

17. हानि (Loss) - जब व्यय आगम से अधिक होते हैं तो व्यय का आधिक्य हानि कहलाता है, जो कि पूँजी में कमी करता है। इसे व्यापारिक दृष्टि से सामान्य हानि समझा जाता है, जबकि आग, चोरी, बाढ़, दुर्घटना से होने वाली हानि को असामान्य हानि (Abnormal Loss) कहा जाता है।

18. लाभ (Gain) - यह एक प्रकार की मौद्रिक प्राप्ति है, जो व्यवसाय के व्यवहार के फलस्वरूप प्राप्त होती है, जैसे- यदि 1,50,000 रुपये मूल्य की सम्पत्ति को 2,00,000 रुपये में बेचा जाएगा 50,000 रुपये की प्राप्ति लाभ (Gain) कहलायेगी।

13 Basic Terms of Accounting.

13 Basic Terms of Accounting| Receipt| Expenditure| Expenses| Income| Profit| Gain| Loss| Purchase| Purchase Return| Sales| Sales Return| Goods| Stock/Inventory.

Hello Everyone,

In previous blog we have discussed 6 basic term of Accounting. Now in this blog we will know 13 more terms.

13 basic Terms of Accounting.

1. Receipts: Receipt is the amount received or receivable for selling assets, goods or services. Receipts are further categorised into revenue receipts and capital receipts. Revenue Receipts: It is the amount received or receivable in the normal course of business say against sale of goods or rendering of services or investment of business resources say in fixed deposit. Examples of revenue receipts are: amount received or receivable against sale of goods or rendering of services, interest on fixed deposits or investments, etc.

Capital Receipts: It is the amount received or receivable against transactions which are not revenue in nature. For example, amount received or receivable for sale of machinery, building, furniture, investment, loan, etc.

2. Expenditure: Expenditure is the amount spent or liability incurred for acquiring assets, goods or services. Expenditure may be categorised into:

(1) Capital Expenditure: It is an expenditure incurred to acquire assets or improving the existing assets which will increase the earning capacity of the business, i.e...will give benefit of enduring nature to the business. It may be incurred to acquire tangible asset or intangible asset. 

Examples of capital expenditure are purchase of machinery to manufacture goods, purchase of furniture or computers to carry on business. Capital Expenditure is shown on the assets side of the Balance Sheet. 

(i). Revenue Expenditure: Revenue Expenditure is the expenditure incurred, the benefit of which is consumed or exhausted within the accounting period. It has direct relationship with revenue or with the accounting period, e.g., cost of goods sold salaries, rent, electricity expenses, etc.

Revenue Expenditure is shown on the debit side of the Trading Account or Profit and Loss Account, in the case of firms and in the Expenses part of the Statement of Profit and Loss, in the case of companies. 

(iii). Deferred Revenue Expenditure: Deferred Revenue Expenditure is a revenue expenditure in nature but is written off (charged) in more than one accounting period. For example, large advertising expenditure that will give benefit for more than one accounting period is a Deferred Revenue Expenditure.

3. Expenses : Expense is the cost incurred for generating revenue. According to I.N. Anthony. "Expense is a monetary measure of inputs or resources consumed." It is a value which has expired during the accounting period. It may be

(1) cash payment such as salaries, wages, rent, etc. 

4. Income: Income is the profit earned during a period. In other words, the difference between revenue and expense is termed as Income. It is a broader term than the term 'profit' and includes profit from activities other than its Operating Activities. 

For example, goods coating 15,000 are sold for 21,000, the cost of goods sold, Le.. 15,000 is expense, the sale of goods, Le, 21.000 is revenue and the difference, 6,000 is income. It can, therefore, he expressed as:

5. Profit: Profit means income earned by the business from its Operating Activities, ie, the activities carried out by the enterprise to earn profit. Profit is further divided into gross profit and net profit.

Gross Profit: Gross Profit is the difference between revenue from sales and/or services rendered over its direct cost.

Net Profit: Net Profit is the profit earned after allowing for all expenses. In case expenses are more than the revenue, it is Net Loss. 

6. Gain: Gain is a profit of irregular or non-recurrent nature. It is a profit that arises from transactions which are the Operating Activities of the business but are incidental. such as gain on sale of fixed asset or investments.

7. Loss: Loss is excess of expenses of a period over its revenues. It decreases the owner's equity. It is a broad term and includes loss incurred in its operating (business) activities, money or money's worth lost against which the firm receives no cash or goods lost in theft and loss arising from events of non-recurring nature, e.g. loss on sale of fixed assets.

8. Purchases: The term 'Purchases' is used for purchases of goods for resale or for producing the finished products which are also to be sold. The term 'purchases includes both cash and credit purchases of goods. Goods purchased for cash are termed as Cash Purchases and goods purchased on credit are termed as Credit Purchases.

9. Purchases Return: Goods purchased may be returned to the seller for any ,reason say, they are defective. Goods so returned are known as Purchases Return or Returns Outward.

10. Sales: The term 'Sales' is associated with or used for sale of goods that are dealt with by the firm. The term 'Sales' includes both cash and credit sales. When goods are sold for cash, they are termed as Cash Sales and when sold on credit, they are termed as Credit Sales.

11. Sales Return: Goods sold when returned by the purchaser are termed as Sales Return or Returns Inward.

12. Goods: Goods are the physical items of trade. It is a term that applies to all the items making up the sales or purchases of a business. They are thus Stock-in-Trade of an enterprise, which are purchased or manufactured with a purpose of selling. For an enterprise dealing in home appliances such as T.V., fridge, A.C., etc., are goods. Similarly, for a stationer, stationery is goods.

13. Stock/Inventory: Stock (Inventory) is a tangible asset held by an enterprise for the purpose of sale in the ordinary course of business or for the purpose of using it in the production of goods meant for sale. Stock (Inventory) may be: Opening Stock (Inventory) or (ii) Closing Stock (Inventory).

Types of Economic Activities.

Types of Economic Activities:

The economic activities may be classified in three broad categories: 

(a) Business: Business includes all activities which are concerned with the sale or exchange of goods and services with the objective of earning profits. 

(b) Profession: All those activities which require special knowledge and skill for their occupation are included in profession. Such as activities of Doctors, Professors and Lawyers etc. are included in it.

(c) Employment: Employment refers to occupation to which people work for others and get remuneration in return. For example, work in factories, government Offices etc.

Basic Terminology of Accounting.

Basic terminology of Accounting|Business transactions|Account|Capital|Drawings|Liabilities|Assets.

In business, various accounting terms are used. It is necessary to understand the terms as they are part of the standard accounting terminology.

Basic terminology of Accounting

1. Business Transaction: The term 'Business Transaction' means a financial transaction or event entered into by two parties. It is a financial event expressed in terms of money which brings a change the financial position of an enterprise.

Examples of business transactions are sales of goods, purchases of goods, receipt from debtors, payment to creditors, purchase or sale of fixed assets, etc.

A transaction may be a cash transaction or a credit transaction.

When the amount is transacted immediately on entering into a transaction it is a cash transaction,

and where it is promised to pay later, it is a credit transaction.

2. Account: Account is a summarised record of transactions relating to a particular head at one place.

For example, purchases of goods, whether cash or credit, are shown is Purchases Account.

3. Capital: Capital is the amount invested by the proprietor or partner in the business It may be in the form of money or assets having a monetary value. It is a liability of the business towards the proprietor or partner.

Capital = Assets-Liabilities

4. Drawings: It is the amount withdrawn or goods taken by the proprietor or partner for personal use. Goods so taken by the proprietor or partner are valued at purchase cost. Drawings reduces the investment (or capital) of the owners.

5. Liabilities: Liabilities mean amount owed (payable) by the business. Liability towards the owners of the business is termed as internal liability. On the other hand, liability towards the outsiders, i.e., other than the owners (proprietor) is termed as external liability. External liability arises because of credit transactions or loans taken.

Examples of external liability are creditors, bank overdraft, long-term borrowings, and other liabilities.

Liability can be further classified into:

(i) Non-current Liability: Non-current Liability is that liability which is payable after a period of more than a year from the end of the accounting period.

Examples of Non-current Liability are long-term loans, debentures, etc.

(ii) Current Liability: Current Liability is that liability which is payable within 12 months from the end of the accounting period. Examples of Current Liability are creditors, bills payable, short-term loans, etc.

6. Assets: Assets are the properties (tangible assets and intangible assets) owned by a business. They are the economic resources of the business. In other words, anything which will enable the firm to get cash or an economic benefit in the future, is an asset.

Examples of assets are land, building, machinery, furniture, stock, debtors, cash bank balances, trademarks, copyrights, goodwill, etc.

Assets can be classified into (1) Non-current Assets, (2) Current Assets, (3) Fictitious Assets:

(1) Non-current Assets: Non-current Assets are those assets which are held by business not with the purpose to resell but are held either as investment or facilitate business operations. In other words, those assets are held by busi business from a long-term point of view.

Examples of non-current assets a Fixed assets, Non-current Investments, Long-term Loans and Advances Other Non-current Assets.

1. Fixed Assets: Fixed assets are those non-current assets of an enterprise which

are held not to resell but with the purpose to increase its earning capacity.

Fixed assets are further classified into:

(a) Tangible Assets: Tangible Assets are those assets which have physic existence, i.e., they can be seen and touched. Examples of tangible assets a land, building, machinery, computer, furniture, etc.

(b) Intangible Assets: Intangible Assets are those assets which do not has physical existence, i.e., they cannot be seen and touched. 

Examples intangible assets are patents, goodwill, trademarks, Computer Software, etc.

(2) Current Assets: Current Assets are those assets which are held by the busines with the the purpose  of converting them into cash within a short period, i.e., one year. 

For example, goods are purchased with a purpose to resell and earn ,debtors exist to convert them into cash, i.e., receive the amount from them. They are so classified because a part of the benefit from such expenses is available in the next accounting year.

(3) Fictitious Assets: Fictitious Assets are those assets which are neither tangible assets nor intangible assets. They are losses not written off in the year in which they are incurred but in more than one accounting period.

In the case of firms, an example of fictitious asset is Deferred Revenue Expenditure. Discount or Loss on Issue of Debentures is an example of fictitious asset in the case of companies.

So in this blog we have discussed six basic terms of Accounting. In next blog we will understand some more important terms. I hope you would have found this blog helpful. If yes don't forget to write your comment and suggestions.

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What are Economic and Non- Economic Activities?

Economic and Non-Economic Activities

Meaning of Economic Activities

The activities of man performed with a view to earning wealth are called economic activities. 

For example, teaching by a teacher, treatment of patients by doctor, cultivation by farmer, working in a factory by a labourer etc. are economic activities.

Definition of Economic Activities

The economic activities have been defined as under:

Pigou, "Economic activities are those social activities which are done for the welfare of man and which can be measured in terms of money".

Meaning of Non-Economic Activities 

The activities that do not concern themselves with money or in which money is not involved but are done for pleasure or out of emotions are called non economic activities. 

For example, nursing of a child by mother, services done to his family by a doctor, teaching own son at home etc. are the examples of non economic activity. In the same way, charitable activities are also known as non economic activities.

प्रबंध के सिद्धांतों की विशेषताएं अथवा प्रकृति।

पिछले ब्लॉग में हमने प्रबंध के सिद्धांतों का आशय एवं परिभाषाएं जानी। अब इस ब्लॉग में हम प्रबंध के सिद्धांतों की विशेषताएं अथवा प्रकृति के बारे में जानेंगे।

प्रबंध के सिद्धांतों की प्रकृति या विशेषताएं

प्रबंधन के सिद्धांतों में निम्नलिखित विशेषताएं हैं:

1. सार्वभौमिकता-प्रबंध के सिद्धांत सार्वभौमिक हैं और विभिन्न संगठनों-व्यवसाय, सरकार, सैन्य, अस्पताल, विश्वविद्यालय, आदि में लागू किए जा सकते हैं। प्रत्येक प्रबंधक के सामने मूल कार्य मानव प्रयासों के समन्वय के माध्यम से वांछित परिणाम प्राप्त करना है। इसलिए, उनका उपयोग विभिन्न संगठनों के प्रबंधकों और प्राधिकरण के विभिन्न स्तरों पर समान उपयोगिता के साथ किया जा सकता है।

2. लोचशीलता-प्रबंधन सिद्धांत लचीले होते हैं और लगातार बदलते रहते हैं। प्रबंधन एक सामाजिक विज्ञान है और इसके सिद्धांत भौतिकी या रसायन विज्ञान की तरह कठोर नहीं हैं। इन सिद्धांतों को सभी स्थितियों में एक समान तरीके से आँख बंद करके लागू नहीं किया जा सकता है। दी गई स्थिति के अनुरूप आवश्यक संशोधन किया जाना चाहिए।

3. सामान्य दिशानिर्देशों के रूप में- प्रबंधन सिद्धांतों का उपयोग सामान्य दिशानिर्देशों के रूप में किया जाता है। उन्हें सभी स्थितियों में आँख बंद करके और सख्ती से लागू नहीं किया जा सकता है। हेनरी फेयोल के शब्दों में, "प्रबंधन के सिद्धांत निरपेक्ष नहीं हैं और उन्हें बदलती और विशेष परिस्थितियों के आलोक में उपयोग किया जाना चाहिए।" 

4. विकासात्मक- प्रबंधकों को उनके काम करने में बढ़ती समस्याओं के साथ प्रबंधन सिद्धांतों की वकालत की जाती है। जैसा कि अनुभव में शामिल है, नए सिद्धांतों को जगह मिली है।

5. समानता- सभी प्रबंधन सिद्धांत समान रूप से महत्वपूर्ण हैं। किसी एक सिद्धांत का दूसरों से बड़ा महत्व नहीं है। उदाहरण के लिए, कोई यह नहीं कह सकता कि आदेश की एकता की तुलना में कार्य विभाजन अधिक महत्वपूर्ण है, या इसके विपरीत।

6. मानव प्रकृति

व्यवहार-प्रबंधन सिद्धांत मनुष्य के साथ व्यवहार करता है क्योंकि सभी कार्य मनुष्य द्वारा किए जाते हैं। लेकिन मानव व्यवहार बहुत जटिल और अप्रत्याशित है। वे मानव व्यवहार को वांछित तरीके से प्रभावित करने के लिए डिज़ाइन किए गए हैं ताकि संगठनात्मक लक्ष्यों को प्राप्त किया जा सके।

7. कारण और प्रभाव

संबंध-प्रबंधन सिद्धांत विभिन्न कारकों के बीच कारण और प्रभाव संबंध स्थापित करते हैं। ये सिद्धांत उन परिणामों को इंगित करते हैं जो एक निश्चित निर्णय या कार्रवाई से प्रवाहित होंगे।

उदाहरण के लिए, आदेश की एकता का सिद्धांत कहता है कि यदि एक से अधिक बॉस हैं, तो कर्मचारी के मन में भ्रम पैदा होगा। यहां, एकाधिक आदेश कारण है और भ्रम प्रभाव है।

8. सापेक्षता-प्रबंधन सिद्धांत निरपेक्ष नहीं हैं। उन्हें उपलब्ध स्थिति के अनुसार तैयार किया गया है। 

उदाहरण के लिए, विभेदक मजदूरी के सिद्धांत में दो मजदूरों के काम करने का आधार है। इस प्रकार, वे सापेक्ष हैं।

Nature or Characteristics of Principles of Management

In previous blog post we have discussed Meaning and Definitions of Principles of Management. Now in this blog we are going to know nature and Characteristics of Principles of management.

Nature or Characteristics of Principles of Management

Principles of Management have the following features or characteristics:-

1. Universal Applicability-They are universal and can be applied in different organisations-business, government, military, hospital, university, etc. The basic task before every manager is to get the desired results through coordination of human efforts. Hence, they may be used with equal utility by managers of different organisations and at different levels of authority.

2. Flexibility-Management principles are flexible and continually changing. Management is a social science and its principles are not as rigid as those of physics or chemistry. These principles cannot be applied blindly in an identical manner to all situations. Necessary modification should be made to suit the given situation.

3. In Form of General Guidelines- Management principles are used as general guidelines. They cannot be applied blindly and strictly to all situations. In the words of Henry Fayol, "Principles of management are not absolute and must be utilised in the light of changing and special conditions." 

4. Developmental Principals- The management principles are advocated with increasing problems faced by managers in their working. As experience involves, new principles have got place. 

5. Equality-All management principles are equally important. No one principle has greater significance than the others. For example, One cannot say that the division of work is more important then unity of command, or vice-versa.

6. Human Nature Behaviourality-Management principles deals with human beings as all work is done by human-beings. But human behaviour is very complex and unpredictable. They are designed to influence human behaviour in the desired manner so that the organisational goals are achieved.

7. Cause and effect  

Relationship-Management principles establish cause and effect relationship between different factors. These principles indicate the consequences that will flow from a certain decision or action. 

For example, the principle of unity of command states that if there is more then one boss, confusion will occur in the minds of employee. Here, multiple command is the cause and confusion is the effect.

8. Relativity-Management principles are not absolute. They are framed according to situation available. For e.g, the principle of differential wages has a base of the working of two labourers. Thus, they are relative.