Following are the importance of management

IMPORTANCE OF MANAGEMENT

NEED OR IMPORTANCE OF MANAGEMENT

Following are the importance of management:

Achieving Organisational Goals-

Management is important for all type of organisation either profit or non-profit organisations for achieving their goals.

It do so by developing and effectively utilising organisational resources, both human and non-human.

Optimum Utilization of Resources- 

Management helps in the utilization of all the physical and human resources productively. This leads to efficiency in management.

Management provides maximum utilization of scarce resources by selecting its best possible technology or method to do it.

It makes proper use of human resources like experts, professional and these services leads to use of their skills, knowledge, and proper utilization of resources and avoids wastage.

If employees and machines are producing its maximum then there will be optimum utilization of resources.

Increasing Efficiency-

Management helps in increasing efficiency in an organisation through reducing costs and increasing productivity.

It do so by using suitable management process involving planning, organizing, staffing, directing, and controlling and achieving coordination among these functions.

Reduces Costs-

It gives maximum results through minimum input by using minimum input in properly planned way to getting maximum output.

Management uses physical, human and financial resources in such a planned manner to get best results. This helps in cost reduction of production.

Inculcating Creativity-

Management inculcates creativity in organisation’s people.

Creativity involves generating a unique combination or unusual association of ideas.

Creativity helps in bringing innovation which is the process of creating or doing new things like developing new products, introducing new ways of serving customers and so on.

And innovation is very important to face competition effectively.

Establish Sound Organization- 

To establish sound organizational, it establishes effective superior and subordinate or authority and responsibility relationship i.e. who is accountable to whom, who can give instructions to whom.

Management also helps in filling up various vacant positions with right persons, having right skills, training and qualification.

Building Dynamic Organisation-

Management helps in building dynamic organisation by bringing changes on continuous basis.

A dynamic organisation is one which continuously interacts with its environment and brings necessary changes in it to meet environmental needs.

Establishes Equilibrium- 

It helps the organization to survive in dynamic environment by being in touch with the changing environment.

It helps to make such an organisation which will adopt changes quickly without affecting their performance. And it is also responsible for growth and survival of the organization.

Integrating Various Interest Groups-

An organisation may be termed as a coalition of different interest groups: owners, employees, customers, suppliers, financiers, government, and society.

Each group has its own goals which it tries to achieve through organisational functioning.

Sometime, these goals are mutually conflicting.

Management integrates the goals of various interest groups in such a way that every group is able to achieve its goals without putting undue pressure on achievement of goals of other interest groups.

Developing Society-

Management helps in developing society in three ways-

FIRST, management helps in developing resources of the society, more particularly human resources.

SECOND, management uses resources of the society at those places where their contributions are the most.

THIRD, management undertakes various projects to develop backward areas of the society resulting in overall development of the society.

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