The significance of Principles of Management:

The significance of principles of management can be discussed in terms of

the following points:

 Providing managers with useful insights into reality: The principles of

management present the managers with valuable insights into real-
world circumstances. Adherence to these policies will supplement their
education, capability and perception of managerial conditions and
circumstances.
 Optimum utilisation of resources and efficient management: Both
material and human resources are obtainable with the firm are
restricted. They have to be placed to best use. By the best utilisation,
the resources must be put to utilisation in such a way that they should
give the most profit with minimum cost. Principles provide the
managers to predict and influence relationships of their choices and
activities.

Importance of Principles of Management:

(1) Providing Managers With Useful Insights Into Reality

 The application of principles of management helps the managers to

take right decisions at the right time.
 These principles of management help managers to tackle the diverse
problems in a dynamic business environment.
(2) Optimum Utilization of Resources & Effective Administration

 Resources are always scarce and limited.

 By applying the management principles, the managers can focus on
optimum use of available resources so as to achieve productive results
at minimum cost and maximum profits.
 It results in effective administration by channelizing resources (human
and material) into the best possible way.
(3) Scientific Decisions
  Application of principles of management makes the manager more
realistic, thoughtful, justifiable and free from personal bias.
 The decisions taken on the basis of principles of management are
subject to evaluation and objective assessment.
(4) Meeting Changing Business Environment

 Although the principles are in the nature of general guidelines, they are
modified and help managers to meet the changing requirements of the
environment.
Example: With the rapid rise of online market sellers, offline vendors have also
started selling their goods on online platforms.
(5) Fulfilling Social Responsibility

 Principles of management not only help in achieving the goals of the

organisation effectively and efficiently, but they also guide the
managers to fulfil their commitment towards its employees and society.
Example: Principles of fair remuneration and equity ensure social justice to
employees and compliance with government norms towards corporate social
responsibility which improves the company’s image in the society.
(6) Management Training, Education and Research

 Proper understanding of principles is the base of training, research, and

development in the field of management.
 Management is taught on the basis of these principles which help the
management institutes prepare future managers.
 These Principles help managers to take decisions and actions in the
right manner.
 Application of these principles by the managers brings innovation in the
field of management.
Example: It is the result of such training, education, and research that Sunil
Mittal could run Airtel in a successful way.
https://byjus.com/commerce/principles-of-management/
Bayesian analysis, a method of statistical inference (named for English
mathematician Thomas Bayes) that allows one to combine prior information
about a population parameter with evidence from information contained in a
sample to guide the statistical inference process. A
prior probability distribution for a parameter of interest is specified first. The
evidence is then obtained and combined through an application of Bayes’s
theorem to provide a posterior probability distribution for the parameter. The
posterior distribution provides the basis for statistical inferences concerning
the parameter.

This method of statistical inference can be described mathematically as

follows. If, at a particular stage in an inquiry, a scientist assigns a probability
distribution to the hypothesis H, Pr(H)—call this the prior probability of H—
and assigns probabilities to the obtained evidence E conditionally on the truth
of H, PrH(E), and conditionally on the falsehood of H, Pr −H(E), Bayes’s theorem
gives a value for the probability of the hypothesis H conditionally on the
evidence E by the formula
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Alternative Title: Bayesian estimation

Bayesian analysis, a method of statistical inference (named for English
mathematician Thomas Bayes) that allows one to combine prior information
about a population parameter with evidence from information contained in a
sample to guide the statistical inference process. A
prior probability distribution for a parameter of interest is specified first. The
evidence is then obtained and combined through an application of Bayes’s
theorem to provide a posterior probability distribution for the parameter. The
posterior distribution provides the basis for statistical inferences concerning
the parameter.

Bayesian analysis
QUICK FACTS

KEY PEOPLE

 Thomas Bayes
 David Blackwell
RELATED TOPICS

 Estimation
This method of statistical inference can be described mathematically as
follows. If, at a particular stage in an inquiry, a scientist assigns a probability
distribution to the hypothesis H, Pr(H)—call this the prior probability of H—
and assigns probabilities to the obtained evidence E conditionally on the truth
of H, PrH(E), and conditionally on the falsehood of H, Pr −H(E), Bayes’s theorem
gives a value for the probability of the hypothesis H conditionally on the
evidence E by the formulaPrE(H) = Pr(H)Pr H (E)/ [Pr(H)PrH(E) + Pr(−H)Pr−H(E)] .

READ MORE ON THIS TOPIC

statistics: Bayesian methods

 The methods of statistical inference previously described are often referred to as classical

methods....

One of the attractive features of this approach to confirmation is that when the
evidence would be highly improbable if the hypothesis were false—that is,
when Pr−H(E) is extremely small—it is easy to see how a hypothesis with a quite
low prior probability can acquire a probability close to 1 when the evidence
comes in. (This holds even when Pr(H) is quite small and Pr(−H), the
probability that H is false, correspondingly large; if E follows deductively from
H, PrH(E) will be 1; hence, if Pr−H(E) is tiny, the numerator of the right side of
the formula will be very close to the denominator, and the value of the right
side thus approaches 1.)

A key, and somewhat controversial, feature of Bayesian methods is the notion

of a probability distribution for a population parameter. According to
classical statistics, parameters are constants and cannot be represented as
random variables. Bayesian proponents argue that, if a parameter value is
unknown, then it makes sense to specify a probability distribution that
describes the possible values for the parameter as well as their likelihood. The
Bayesian approach permits the use of objective data or subjective opinion in
specifying a prior distribution. With the Bayesian approach, different
individuals might specify different prior distributions. Classical statisticians
argue that for this reason Bayesian methods suffer from a lack of objectivity.
Bayesian proponents argue that the classical methods of statistical inference
have built-in subjectivity (through the choice of a sampling plan) and that the
advantage of the Bayesian approach is that the subjectivity is made explicit.

https://www.britannica.com/science/Bayesian-analysis

Bayesian Statistics continues to remain incomprehensible in the ignited minds of many

analysts. Being amazed by the incredible power of machine learning, a lot of us have
become unfaithful to statistics. Our focus has narrowed down to exploring machine
learning. Isn’t it true?

We fail to understand that machine learning is not the only way to solve real world
problems. In several situations, it does not help us solve business problems, even though
there is data involved in these problems. To say the least, knowledge of statistics will allow
you to work on complex analytical problems, irrespective of the size of data.
In 1770s, Thomas Bayes introduced ‘Bayes Theorem’. Even after centuries later, the
importance of ‘Bayesian Statistics’ hasn’t faded away. In fact, today this topic is being
taught in great depths in some of the world’s leading universities.

With this idea, I’ve created this beginner’s guide on Bayesian Statistics. I’ve tried to explain
the concepts in a simplistic manner with examples. Prior knowledge of basic probability &
statistics is desirable. You should check out this course to get a comprehensive low down
on statistics and probability.

By the end of this article, you will have a concrete understanding of Bayesian Statistics and
its associated concepts.

Bayesian Statistics

“Bayesian statistics is a mathematical procedure that applies probabilities to statistical

problems. It provides people the tools to update their beliefs in the evidence of new data.”

You got that? Let me explain it with an example:

Suppose, out of all the 4 championship races (F1) between Niki Lauda and James hunt, Niki
won 3 times while James managed only 1.

So, if you were to bet on the winner of next race, who would he be ?

I bet you would say Niki Lauda.

Here’s the twist. What if you are told that it rained once when James won and once when
Niki won and it is definite that it will rain on the next date. So, who would you bet your
money on now ?

By intuition, it is easy to see that chances of winning for James have increased drastically.
But the question is: how much ?

To understand the problem at hand, we need to become familiar with some concepts, first
of which is conditional probability (explained below).