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The importance of management

 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.  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 any resources.  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.

Improves Understanding. 2. The principles guide managers in decision making and action. The researchers can examine whether the guidelines are useful or not. Improves Understanding . Guide to Research in Management.Principles of management provide understanding of management process what managers would do to accomplish what. Role of Management.From the knowledge of principles managers get indication on how to manage an organization. 2. 3. these are helpful in identifying the areas of management in which existing & future managers should be trained. . Guide to Research in Management . 4. Besides these principles define managerial activities in practical terms.The body of management principles indicate lines along which research should be undertaken to make management practical and more effective. 4.Following are the main importance of the Principles of Management. Therefore these principles act as ready reference to the managers to check whether their decisions are appropriate. The principles enable managers to decide what should be done to accomplish given tasks and to handle situations which may arise in management.Management principles makes the role of managers concrete. 1. These principles make managers more efficient. 1. Direction for Training of Managers . They tell what a manager is expected to do in specific situation. Thus. Anything which makes management research more exact & pointed will help improve management practice. Role of Management . Direction for Training of Managers. 3.

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. must have a single minded focus on the fulfillment of the organizational goals. and the automobiles we drive. All managers. The role of the Management is to move an organization towards its purposes or goals by assigning activities those organization members perform. Sales Managers maintain a sales force that markets goods. the role of managers is to guide the organizations toward goal accomplishment. In short. All organizations exist for certain purposes or goals. whether developed or developing. If Management ensures that all the activities are designed effectively. need a huge lot of good managers. Personnel managers provide organizations with a competent and productive workforce. the food we eat. Plant managers run manufacturing operations that produce the clothes we wear. . Our society could never exist as we know it today nor improve without a steady stream of managers to guide its organizations. The meaning of the Management is given by its goals and objectives. 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. THE ROLE OF MANAGEMENT: Essentially.and managers are responsible for combining and using organizational resources to ensure that their organizations achieve their purposes. all societies. the production of each individual worker will contribute to the attainment of the organizational goals.IMPORTANCE OF MANAGEMENT: Managers influence all the phases of modern organizations.

Scope for new changes . 3.responsibility is very important.Where the roles and activities to be performed are clear and every person gets independence in his working. 5. 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. This is very important for job. “Authority without responsibility leads to ineffective behaviour and responsibility without authority makes person ineffective. clarity of powers helps automatically in increasing mental satisfaction and thereby a sense of security in a concern. A manager gets ready for taking independent decisions which can be a road or path to adoption of new techniques of production.” Therefore. 8. This is possible only when the organization structure is well. This all leads to efficient and effective administration.ordination among different departments of the enterprise. The roles assigned to every manager is clear.A company’s growth is totally dependant on how efficiently and smoothly a concern works. The roles to be performed by different managers are clarified. 7. This is helping in defining the jobs properly which clarifies the role of every person.defined. Clarifies authority . Sense of security .Organizational structure helps in clarifying the role positions to every manager (status quo).Organization is a means of creating co. There should be coordination between different relationships.ordination is possible. Well defined jobs .Organizational structure is a network of relationships in which the work is divided into units and departments. 6. This scope for bringing new changes into the running of an enterprise is possible only through a set of organizational structure. Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. Co-ordination . 4. Clarity should be made for having an ultimate responsibility attached to every authority. Efficiency can be brought about by clarifying the role positions to the managers. skill and experience. . co. Therefore.Organizational structure clarifies the job positions. For smooth running of an organization. Co. Authority responsibility relationships can be fruitful only when there is a formal relationship between the two. 2. It creates clear cut relationships among positions and ensure mutual co. This helps in increasing productivity.1. a company can diversify if its potential grow. Specialization . the coordination between authority. this provides enough space to a manager to develop his talents and flourish his knowledge.satisfaction. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level manager.The organization structure is helpful in defining the jobs positions. Specialization is achieved through division of work.ordination of authorityresponsibility is very important. This is possible through a set of formal structure. co-ordination between authority and responsibility and concentrating on specialization. Effective administration . There is a saying. This division of work is helping in bringing specialization in various activities of concern.Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications. Growth and diversification . In addition to this.operation among individuals.