Significance/Importance of Management:
The Significance/importance of management are as follows:
This helps in achieving goals: It organizes factors of production, combines and organizes resources, effectively integrates resources in order to achieve goals. It guides the group’s efforts to achieve pre-determined goals. Defining clearly the purpose of the organization will not be wastage of time, money, and effort. The management converts disorganized resources of men, machines, money, etc. into a useful enterprise. These resources are coordinated, guided, and controlled in such a way that enterprises work towards achieving goals.
Optimal utilization of resources: Management uses all the physical and human resources productively. It has effectiveness in management. The management provides maximum use of rare resources by selecting its best possible alternate use in the industry with various uses. It uses experts, professionals and these services have their skills, knowledge, and proper use.
Reduces cost: It achieves maximum results by proper planning, through minimal input and using the minimum input and receiving the maximum output. Management uses physical, human, and financial resources in such a manner that results in the best combination. This helps in reducing costs.
Sound organization establishes: There is no overlapping of efforts (smooth and coordinated works). To establish a sound organizational structure for a purpose of management which is in line with the purpose of the organization and to fulfill it, it establishes effective authority and responsibility relationship, that is, who is responsible for whom, who can give directions to the senior and who is subordinate. Management fills up various positions with the right number of people, who have the right skills, training, and qualifications. All jobs must be approved by all.
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Establishes balance: This enables the organization to survive in the changing environment. It remains in contact with the changing environment. The change is the external environment, the organization’s initial coordination will change. Therefore, it adopts the organization’s changing needs and changing needs of society. It is responsible for the organization’s development and survival.
Essential for the prosperity of society: Efficient management leads to better economic production which helps in enhancing the welfare of the people. Good management makes a difficult task easier by avoiding wastage of rare resources. It improves the standard of living. It enhances the profit that is beneficial for business and the employment opportunities will get maximum yield at a minimal cost, which generates income in hands. The organization comes with new products and does beneficial research for society.
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