The main theme of teacher education is to equip the trainee teachers with a series of learning experiences that enable them to imbibe values, attitudes, knowledge and skills which in the end enables them to perform their role effectively as the productive members of the society. B.Ed. colleges play a vital role in providing training to the secondary school teachers for their professionalization. The complexity of the role played by Principals of B.Ed. colleges is growing by day due to the increasing social complexity and also due to the higher expectations and greater demands that are being placed by the students on these colleges. As the Principal happens to be the team leader of the personnel in the college, he naturally wields an immense influence over the behavior of the members of the staff - teaching and non-teaching, their morale, job satisfaction, their self-concept, organizational climate and institutional effectiveness. The Principal of B.Ed. College must have a perception of different levels of development of the trainee teachers, their background and a consummate knowledge as to how to run and manage a B.Ed. college. Perception of B.Ed. college lecturers about their Principals’ managerial effectiveness and effective functioning of their colleges plays a major role in determining the success of the Principals. Adequate number of research studies has been made both on the Principals’ managerial effectiveness and effective functioning of educational organizations at primary, secondary, higher secondary, college and university levels. These researches throw an adequate light and provide us with valuable insights for conducting the appropriate investigations for better understanding of the theme of the present study. The investigator has developed the two rating scales i.e. Managerial Effective Rating Scale and Effective Functioning Rating Scale for assessing the Principals’ managerial effectiveness and effective functioning of the colleges as perceived by their B.Ed. college lecturers working in Rayalaseema Region of Andhra Pradesh State. For the analysis of data, Karl Pearson Product-moment coefficient of correlation has been used by the investigators in the present study. The results of the study concluded that higher the managerial effectiveness of the Principals, better was the effective functioning of the colleges as perceived by the B.Ed. college lecturers.