- Business and Employment
Importance of Management
What is the Importance of Management
Achieving Group Goals: Management achieves goals effectively by organizing the factors of production and assembling, organizing and integrating the resources. It achieves predetermined goals by directing group endeavors. Unnecessary expenditure of time, money and effort can be avoided by clearly defining the goals of an organization. Management makes an enterprise useful by changing the disorganized resources of men, machines and money. It makes the enterprise achieve their goals by coordinating, directing and controlling all the available resources.
Optimum use of Resources: Management effectively uses all the available physical and human resources productively. It also uses scarce resources for utilizing it in the best possible way in the industry. It utilizes the services of professional people who are experts in order to use their skills and knowledge to prevent any wastage. Hence, resources are utilized properly by the maximum production of employees and machines.
Reduces Costs: By using minimum input and proper planning, maximum results are achieved. It uses physical, human and financial resources in the best combination in order to help cost reduction.
Establishes Sound Organization: The main goal of management is to set up sound organizational structure. To achieve this, it establishes efficient authority and responsibilities among superiors and subordinates. Management ensures that the right people are occupying the right positions and also possessing the right skills, training and qualification needed to do the job.
Establishes equilibrium: Management enables the organization to endure in a changing environment. It adapts the organization to meet the demands of the market and communities. Hence, it is solely responsible for the expansion and survival of an organization.
Essentials for a Prosperous Society: Efficient management leads to better economical production and increases the welfare of society. It avoids wastage of scarce resources and improves the standard of living. It also benefits business and society by creating job opportunities which produces income in hands. Thus, it helps in producing new products and researches which will benefit the society enormously.
- Introduction to Management
Business Management: Meaning of Management; What is Management, Definition of Management and things to know about Management. Management is a worldwide phenomenon.
- The Five Functions of Management
Functions of Management. Koontz and O’Donnel explained five functions of management. They are; Planning, Organizing, Staffing, Directing and Controlling.