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The importance of management

It helps in Achieving Group Goals - It arranges the factors of production, assembles andorganizes the resources, integrates the resources in effective manner to achieve goals. It

directs group efforts towards achievement of pre-determined goals. By defining objective oforganization 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.

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

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 anyresources.

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 which results in best combination. This helps in cost

reduction.

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.

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.

Essentials for Prosperity of Society - Efficient management leads to better economical

production which helps in turn to increase the welfare of people. Good management makes a

difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It

increases the profit which is beneficial to business and society will get maximum output at

minimum cost by creating employment opportunities which generate income in hands.

Organization comes with new products and researches beneficial for society.

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Following are the main importance of the Principles of Management.

1. Improves Understanding.2. Direction for Training of Managers.3. Role of Management.4. Guide to Research in Management.1. Improves Understanding - From the knowledge of principles managers get

indication on how to manage an organization. The principles enable managers to

decide what should be done to accomplish given tasks and to handle situations which

may arise in management. These principles make managers more efficient.

2. Direction for Training of Managers - Principles of management provideunderstanding of management process what managers would do to accomplish what.

Thus, these are helpful in identifying the areas of management in which existing &

future managers should be trained.

3. Role of Management - Management principles makes the role of managers concrete.Therefore these principles act as ready reference to the managers to check whethertheir decisions are appropriate. Besides these principles define managerial activities in

practical terms. They tell what a manager is expected to do in specific situation.

4. Guide to Research in Management - The body of management principles indicatelines along which research should be undertaken to make management practical and

more effective. The principles guide managers in decision making and action. The

researchers can examine whether the guidelines are useful or not. Anything which

makes management research more exact & pointed will help improve management

practice.

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IMPORTANCE OF MANAGEMENT:

Managers influence all the phases of modern organizations. Sales Managers maintain a sales

force that markets goods. Personnel managers provide organizations with a competent andproductive workforce. Plant managers run manufacturing operations that produce the clothes

we wear, the food we eat, and the automobiles we drive.

Our society could never exist as we know it today nor improve without a steady stream of

managers to guide its organizations. The well known management author Peter Drucker

highlighted this point when he said that Effective Management is probably the main resource

of developed countries and the most needed resource of developing ones.

In short, all societies, whether developed or developing, need a huge lot of good managers.

THE ROLE OF MANAGEMENT:

Essentially, the role of managers is to guide the organizations toward goal accomplishment.

All organizations exist for certain purposes or goals,and managers are responsible for

combining and using organizational resources to ensure that their organizations achieve their

purposes.

The role of the Management is to move an organization towards its purposes or goals by

assigning activities those organization members perform.

If Management ensures that all the activities are designed effectively, the production of each

individual worker will contribute to the attainment of the organizational goals.

Management strives to encourage individual activity that will lead to reaching organizational

goals and to discourage individual activity that will hinder the accomplishment of the

organization objectives.

There is no idea more important than managing the fulfillment of the organizational goals and

objectives. The meaning of the Management is given by its goals and objectives.

All managers, must have a single minded focus on the fulfillment of the organizational goals.

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1. Specialization - Organizational structure is a network of relationships in which thework is divided into units and departments. This division of work is helping in

bringing specialization in various activities of concern.

2. Well defined jobs - Organizational structure helps in putting right men on right jobwhich can be done by selecting people for various departments according to their

qualifications, skill and experience. This is helping in defining the jobs properlywhich clarifies the role of every person.

3. Clarifies authority - Organizational structure helps in clarifying the role positions toevery manager (status quo). This can be done by clarifying the powers to every

manager and the way he has to exercise those powers should be clarified so that

misuse of powers do not take place. Well defined jobs and responsibilities attached

helps in bringing efficiency into managers working. This helps in increasing

productivity.

4. Co-ordination - Organization is a means of creating co- ordination among differentdepartments of the enterprise. It creates clear cut relationships among positions andensure mutual co- operation among individuals. Harmony of work is brought by

higher level managers exercising their authority over interconnected activities of

lower level manager.

Authority responsibility relationships can be fruitful only when there is a formal

relationship between the two. For smooth running of an organization, the co-

ordination between authority- responsibility is very important. There should be co-

ordination between different relationships. Clarity should be made for having an

ultimate responsibility attached to every authority. There is a saying, Authority

without responsibility leads to ineffective behaviour and responsibility without

authority makes person ineffective. Therefore, co- ordination of authority-

responsibility is very important.

5. Effective administration - The organization structure is helpful in defining the jobspositions. The roles to be performed by different managers are clarified.

Specialization is achieved through division of work. This all leads to efficient and

effective administration.

6. Growth and diversification -A companys growth is totally dependant on howefficiently and smoothly a concern works. Efficiency can be brought about by

clarifying the role positions to the managers, co-ordination between authority and

responsibility and concentrating on specialization. In addition to this, a company candiversify if its potential grow. This is possible only when the organization structure is

well- defined. This is possible through a set of formal structure.

7. Sense of security - Organizational structure clarifies the job positions. The rolesassigned to every manager is clear. Co- ordination is possible. Therefore, clarity of

powers helps automatically in increasing mental satisfaction and thereby a sense of

security in a concern. This is very important for job- satisfaction.

8. Scope for new changes - Where the roles and activities to be performed are clear andevery person gets independence in his working, this provides enough space to a

manager to develop his talents and flourish his knowledge. A manager gets ready for

taking independent decisions which can be a road or path to adoption of new

techniques of production. This scope for bringing new changes into the running of anenterprise is possible only through a set of organizational structure.

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