Importance of Management

1. Encourages Initiatives

As we know management is a dynamic process, it encourages new initiatives. It encourages people to do the right things at the right time without being told or influenced by their supervisors. An employee should be encouraged to make their own plans and implement the plans. However the plans should be in line with the organizational goals.

2. It helps in Achieving Group Goals

It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of 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 enterprise work towards attainment of goals.

3. Improves Understanding

From the knowledge of principles, managers get an indication on how to manage an organization. The principles enable the managers to decide what should be done to accomplish the given tasks and to handle situations which may arise in management. These principles make the managers more efficient.

4. Optimum Utilization of Resources

Management brings together all the available resources and aids in optimum utilization of these resources. 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 leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources.

5. Encourages Innovation

As we know management encourages initiatives this leads to innovation and out of the box thinking. Different people come up with new and innovative ideas which lead to new products being developed, new technology being introduced. These innovations make the organization more productive and efficient.

6. Reduces Costs and wastages

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 which results in best combination. This helps in cost reduction and waste reduction as resources can be managed in an efficient way.

7. Improves Corporate Image

If the management is good it leads to cost reduction, innovation and initiatives as a result the quality of goods and service offered is improved, this lead to increased goodwill and corporate image of the organization.    A good corporate image brings many added benefits to the organization.

8. Motivates Employees

Management which encourages employees to take initiatives, implement their plans leads to motivation amongst the employees. This leads to willingness and efficiency in employees, which in the end boosts productivity of the organization.

9. Establishes Sound Organization

No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship 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 right persons, having right skills, training and qualification. All jobs should be cleared to everyone.

10 Establishes Equilibrium

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

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