Intro

Importance of Management

It helps in Achieving Group Goals – It arranges the factors of production, assembles and organizes the resources, integrates the resources in an effective manner to achieve goals. It directs group efforts towards the achievement of pre-determined goals. By defining the objective of the organization clearly, there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money, etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprises work towards the attainment of goals.

Optimum Utilization of Resources – Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services lead to the use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing their maximum there is no under the employment of any resources.

Reduces Costs – It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner that results in the best combination. This helps in cost reduction.

Establishes Sound Organization – No overlapping of efforts (smooth and coordinated functions). Establishing sound organizational structure is one of the objectives of management that is in tune with the objective of the organization and for the fulfillment of this, it establishes effective authority & responsibility relationships i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with the right persons, having the right skills, training and qualification. All jobs should be cleared for everyone.

Establishes Equilibrium – It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change in the external environment, the initial coordination of the organization must be changed. So it adapts organizations to changing demand of the market/changing needs of societies. It is responsible for the growth and survival of the organization.