What is Importance of Management

Importance of Management

In the ancient times business was done on a small scale and management had no special importance, Now business is done on a big scale and consequently, various complexities confront us. The need of management has been felt in view of these complexities and their solution. Now management has established itself as an art and with its help minimum effort can result in maximum prosperity. In this regarded the views of some modern management experts are given below:

According to Drucker, Management is a dynamic and life-giving element of every business. In its absence the means of production remain merely the means and can never be the producers. According to Terry, No organization can be successful for a long time without effective management. To a large extent the achievement of social, economic and political objectives depends on able managers.

It is thus clear that not only in the field of business but in other fields also management has come to occupy an important place. In this reference, it is said that any thing minus management is nothing. The following facts clearly highlight the importance of management:

(1) Achieving Pre-determined Objectives:

Each organization is established with certain aims, Management is the only medium and power which can help in the successful attainment of these aims. A manager with the help of his expertise and cleverness makes an assessment of the future events. He makes plans, creates an organization, distributes work, grants requisite authority, directs the employees & controls them. By a critical assessment or appraisal he tries to find out deviations and finally by his corrective action makes the impossible look simple.

(2) Ensuring Maximum Utilization of Resources of Production:

Management is that power which by establishing an effective coordination between the various resources of production makes an optimum use of these resources. According to Herbert N. Bays on, In every big enterprise a train load of gold is provided. It can be achieved by making a better use of resources and putting an end to useless or meaningless expenses. It means that all the available resources of the organization have been likened with gold but to profit from the available resources requires their proper utilization. It is, therefore, clear that the most efficient use of the limited resources is the key to the successful business. This fact can be converted into reality with the help of management.

(3) Overcoming Competition:

These days business is not localized but it has assumed national or even international dimensions. Competition is increasing with the widening of area and larger dimension of business. A modern producer faces competition not only from a local producer or competition at the national level but international competition is also getting sharper. In such a competitive atmosphere only that organization can survive which can make available to its customers the best quality of goods at the cheapest rates. Only an efficient and clever manager can make it a reality and save the reputation of an organization.

(4) Ensuring Integration with Changing Environment:

Management is not only limited to various internal functions of an organization but it has to compromise with the outer atmosphere also. On the one hand technical experts are devising new ways of production and, while on the other hand progressive organizations are applying modern marketing techniques. Even customers do not easily accept the produced goods because they are now wide awake and their standard of living has also improved and their tastes have also undergone a change. Thus, only an efficient manager can coordinate his work with the fast changing atmosphere. With the help of efficient and effective management a coordination between the new and prevalent work system and methods can be established to save the reputation of an organization.

(5) Ensuring Smooth Running of Large Scale Business:

Keeping in view the profits of large scale production, it has started getting preference. In view of the large scale production the means of production (Men, Money, Material, Machine, etc.) will also be required on a large scale. Apart from this, business shall have to face various legal formalities. To perform these functions efficiently and in a controlled manner, the need of an efficient manager is paramount. Therefore, without an efficient manager smooth running of large scale business is not possible.

(6) Maintaining a Sound Organizational Structure:

A sound organizational structure is needed for the success of any enterprise. A sound organizational structure means defining a clear relationship between the superiors and their subordinates. It has to be decided what work will be done by various persons and what rights and duties they enjoy. It will lead to the creation of a team spirit and keep the work atmosphere clean and healthy. All the superiors and subordinates will work without any tension. A sound organizational structure can be created by an efficient manager.

(7) Establishing Good Labor-Owner Relationship:

Labor and capital are the two main resources of production, The owners invest capital and determine objectives while the labor tries to transform those objectives into reality. Therefore, existence of a sweet relationship between the two is of paramount importance. There was a time when there were no labor unions and the owners thought it fit to exploit the labor to the maximum possible extent. Now the labor unions exist and they are sufficiently organized to exert pressure on the owners to get their demands conceded. Industrialists too have realized their importance. It is clear to them that without the efficiency of labor more profits cannot be expected. The efficiency of labor can be increased only when their problems are effectively solved. This can be possible only through management. An efficient manager, with the help of his knowledge and experience, understands the feelings of labor and tries to remove their grievances. He makes arrangements for their training to increase their efficiency. He offers them an opportunity to be partners in the process of management. He also establishes a system of sharing the profits, establishing their individual identity and making timely efforts to solve their problems.

(8) Giving importance to Research and Investigation:

A recent research has brought out the fact that only those companies or business enterprises which are constantly taking interest in research activities are developing fast. In the context of business, research and investigation mean finding out new products and new markets for the extension of business field, new methods of distribution and adopting the use of new techniques to solve financial problems and using new techniques in the field of communication. It is thus abundantly clear that research is needed to develop business at a rapid pace and this job can be accomplished by an efficient manager. Efficient managers invariably establish research and investigation department to achieve this important purpose.

(9) Fulfilling the Social Responsibility:

A business establishment starts its activities in society, prospers and reaches the climax of development in the same social surroundings. Thus, no organization can remain aloof from society and yet survive. That is why every enterprise is considered as an integral part of society. When an enterprise is so much indebted to society, it should also realize its responsibilities towards society. The social responsibilities of a business organization include ensuring the safety of the capital and sufficient profit, proper remuneration and work conditions for the employees, making available to the consumers goods of good quality at the right time and proper prices, making available the opportunities of employment to the people and making efforts to raise their standard of living. An enterprise can ensure these expectations only through the medium of management. Thus, management has a special significance in the task of fulfilling the social responsibilities of business.

(10) Aiming at Increased Profits: In order to increase the profits of any organisation it is the basic principle either to increase the sales revenue or reduce costs. Increasing the sales revenue is beyond the control of an organization to some extent but to affect a reduction in costs is primarily an internal affair of the organization and it can certainly be accomplished with the help of good quality raw material, modern machinery and trained employees. By reducing costs the profits of an organization can be achieved by the management and future development can be expected.

In conclusion, it can be said that management is the life-breath of business and it will not be wrong to say, business without efficient management is a house built on sand, which can fall any time.

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