Significance of Management

Management is essential for all organizations big or small, profit and nonprofit service of manufacturing management is necessary so that individuals make their best contribution towards group objectives.

Managers make decisions as to who will do what, when they will do it and what resources they will use.

The basic job of a manager is the effective and efficient utilization of physical, financial, and human resources to achieve organizational objectives.

Management is a process of getting things done with the aim of achieving goals effectively and efficiently.

The concept of Management insists on three terms :

1. Process: Process refers to a series or sequence of steps, management is a process because it performs a series of functions to get things done. These functions are planning, organizing, staffing, directing, and controlling.

2. Effectiveness: It is concerned with doing the right task, completing activities, and achieving goals. In other words, it is concerned with end result. Being effective or doing work effectively means finishing the given task or achieving the goal on time.

3. Efficiency: It refers to doing the task in the right way, i.e., with minimum cost and optimum utilization of resources. Efficiency involves cost-benefit analysis. It focuses on deriving more benefits by using fewer resources.

Significance of Management

A business organization at 10 top positions only because of the quality of Management successful organizations do not achieve their goals by chance but by following a deliberate process called management.

On the other hand lack of proper management Revolt in wastage of time money and effort as most businesses fail due to poor management is a life-giving element in every business without it the resources of production remain a resource and shall never become production.

Absence of Management no organization can run successfully the major importance of Management are :

1. Management helps in achieving group goals: Management tries to integrate the objectives of individuals along with organizational goals. Management directs the efforts of all the individuals in the common direction of achieving organizational goals.

2. Management increases efficiency: Managers try to reduce the cost and improve productivity with minimum wastage of resources. Management insists on efficiency and effectiveness in the work through planning, organizing, staffing, directing, and controlling.

3. Management creates a dynamic organization: Organisations have to survive in a dynamic environment so managers keep making changes in the organization to match the environmental changes. The employees in the organization are generally resistant to change. Efficient management motivates employees to adopt changes willingly by convincing them that change is not only beneficial for the organization but it improves the employee’s work also in the competitive world.

4. Management helps in achieving personal objectives: An efficient manager is one who brings maximum prosperity for employers as well as employees. Managers lead the people in such a manner that along with organizational goals, the individual goal of employees is also achieved.

5. Management helps in the development of society: Efficient management always has multiple objectives they give due importance to social obligations towards different groups of people such as employees, customers, suppliers, etc. It insists on providing quality goods, competitive salaries, creating employment opportunities, etc.

Characteristics of Management

1. Management is Goal-oriented Process: Management always aims at achieving the organizational objectives. The functions and activities of the manager lead to the achievement of organizational objectives. Management unites the efforts of different individuals in the organization towards achieving common goals.

2. Management is Pervasive: Managerial activities are performed in all types of organizations in all departments and at all levels.

Management is required in all organizations whether big or small, manufacturing or service organizations, profit or non-profit making organizations.

3. Management is Multidimensional: Management does not mean one single activity but it includes three main activities :

a.Management of work

b.Management of people

c.Management of operations

Management of work: All organizations are set up to perform some tasks or goals. Management activities aim at achieving goals or tasks to be accomplished. The task or work depends upon the nature of business, for example, work to be accomplished in a school is providing education, in a hospital is to treat patients, etc.

Management of people: People refer to human resources and human resources are the most important asset of an organization. Management has to get tasks accomplished through people by making their strengths effective and their weaknesses irrelevant.

Managing people has two dimensions :

  1. Taking care of employee’s individual needs.

2. Taking care of a group of people.

Management of operations: Operations refers to activities of the production cycle such as buying inputs,  converting them into semi-finished goods, finished goods. Management of operations concentrates on mixing management of work with management of people, i.e., deciding what was has to be done, how it has to be done, and who will do it.

4. Management is a Continuous Process: Management is a continuous or never-ending function.  All the functions of Management are performed continuously, for example, planning, organizing, staffing, directing, and controlling are performed by all the managers all the time. Sometimes,  they are doing planning then staffing or organizing, etc. Managers perform ongoing series of functions continuously in the organization.

5. Management is a Group Activity: Management always refers to a group of people involved in managerial activities. Each individual performs his/her role at his/her status and department, then only management function can be executed. Even the result of management affects every individual and every department of the organization so it always refers to a group effort and not the individual effort of one person.

6. Management is a Dynamic Function: Management has to make changes in goals, objectives, and other activities according to changes taking place in the environment. The external environment such as the social, economic, technical, and political environment has great influence over the management. As changes take place in these environments, the same are implemented in organizations to survive in the competitive world.

7. Intangible: Management function cannot be physically seen but its presence can be felt. The presence of management can be felt by seeing the orderliness and coordination in the working environment.

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