Importance of management for every business organization are: 1. Management helps in Achieving Group Goals 2. Management Increases Efficiency 3. Management Creates a Dynamic Organisation 4. Management helps in Achieving Personal Objectives 5. Management helps in the Development of the Society.
In absence of efficient management the resources will remain resources and cannot be converted into finished products.
1. Management helps in Achieving Group Goals:
Organisation consists of number of persons who work as a group. Management helps in achieving group goals by giving a common direction to the individual effort.
For example, an employee’s objective is to earn maximum wages whereas the organisational objective is to maximize output. Employees can achieve their objectives by maximizing output which helps in the achievement of organisational goal too. This is what management strives to achieve.
2. Management Increases Efficiency:
The main aim of every manager in any organisation is to minimise the cost and to increase the output through effective planning, organising, directing, staffing, controlling etc. Efficiency increases when we use fewer resources (i.e. inputs) and achieve more benefit or output.
In any organisation, input resources are men, money, material and machinery. Management uses these inputs efficiently by properly allocating them to reduce the wastage which ultimately decreases cost and thus leads to higher profits.
3. Management Creates a Dynamic Organisation:
The environment in which an organisation works is subject to continuous changes and the people working in the organisation resist change because they don’t want to move from a familiar and secure environment to a new environment.
An organisation must change itself and its goal according the needs and aspirations of the environment. Management helps to adapt to these changes in order to be successful. For example, to survive in the Indian market, Mc Donald, a leader in fast foods, has made major changes in its menu.
4. Management helps in Achieving Personal Objectives:
Management not only helps in achieving the organisational objectives but also the personal objectives of the employees. With the help of self motivation and leadership techniques, management helps individuals to develop spirit of cooperation, commitment and team spirit etc. that help them to achieve their personal goals as well.
5. Management helps in the Development of the Society:
An organisation has many obligations towards different groups that constitute it. The process of fulfilling all the objectives must help in growth and development of the organisation as well as society.
For example, providing better quality goods and services, generating employment opportunities, increasing the wealth of the nation, providing fair wages to the workers etc. Effective management helps the organisation in fulfilling all these obligations.