Importance of Management
Why management is important? In this modern yet competitive business environment, the importance of management can not be ignored since every organization’s fundamental success factor is effective management.
Do you know, that almost 90% of startups fail during the first five years of their operation – there are many reasons these startups are failing, but from them, 90% of startups are failed due to poor management practices.
Management has always been a core element of organizational success. The major importance of management to any business organization can be mentioned out below.
Planning is what we call deciding beforehand what and how we accomplish desired goals in the future. For every business to stand tall and accomplish predetermined goals a proper plan is a must.
Planning has been the first function of management. Management is the means to set proper plans by aligning organizational resources with the changing environmental factors such as social, political, cultural, technological, etc. that bring potential threats and opportunities.
Effective Utilization of Resources
Effective utilization of resources is a must to effectively and efficiently realize an organization’s goals. Organizational resources such as employees, finance, information, and physical should work properly in order to get the expected goals.
Management with the help of its principles such as division of work, equity, stability, and so forth aims to rightly utilize resources. As management ensures an employee should be given tasks based on his expertise, in addition, it also organizes different training programs to enhance employees’ performance.
In short, management always aims at utilizing resources such as humans, finance, information, and physical in a way that their collective efforts bring the best results.
Coordination is a must in the organization to sync all the members. Management always aims at bringing coordination to the organization of different groups and teams through mutual understanding, cooperation, and unity.
Right Decision Making
Decision-making means choosing the right alternative. For a goal to be achieved decisions regarding the goals should be right, otherwise, the goal can not be achieved.
Since decision-making is the function of management, it ensures making the right decisions that are correlated with the organizational goals and objectives.
Suppose, you implemented a plan, will you be sure it works? You might or not. To know the actual performance of implemented plans it is necessary to review.
Management ensures that implemented plans go in the right direction. Through controlling it analyzes if there are any deviations if deviations are found, it employs different control measures.
A task to be done effectively, the task should be given and done by the right staff. If planning works are given to accounting departments the results definitely would be weak planning because they are experts in accounting activities.
Management through staffing ensures that the person should be in the right job which in turn improves the performance and results of the given tasks.
Management helps business organizations to adapt to changing environments to be competitive.
Organizations operate in changing environment and the environment is changing more intensely than it was before. External factors such as political, economic, social, technological, legal, environmental, and global factors are highly affecting the performance of the business.
As such, they need to be flexible and change their working mechanisms with changes in the environment.
Reduce Waste and Cost
Management helps to reduce waste and cost through effective planning and utilization of human, financial, informational, and physical resources. It organizes all the factors of production effectively that results in no waste and in turn reduce the other costs that could occur when they are unorganized.
Through effective operation with no waste and low cost, management also helps the company to get a good position in the market and stand strong in the competition.
The goal of every company is to maximize profits through increased outputs and decreased inputs. They want to have the most efficient results.
Management helps in bringing efficient results to the company by proper planning, reducing waste & cost, and by best utilization of resources.
Productivity is another goal every organization strives for. Productivity is when there are maximum outputs from the minimum inputs.
Management contributes to the efficient utilization of human resources and other resources to achieve predetermined goals. The management always aims at maximizing productivity with optimum use of human effort.
The main objective of the management is to help the organization to achieve its predetermined goals in a way that is efficient and effective.
Through proper planning, coordination, balancing authority & responsibility, effectively assembling factors of production, etc. management integrates all the organizational mechanisms to attain desired goals.
In other words, we can say that all the above-mentioned importance of management is proof that how it helps business organizations to accomplish their expected goals.
Welfare To Society
Every organization, startup, or any business wants to survive longer and for this, it is essential to make good relationships with society’s people and offer quality products & services.
Management is concerned about quality products & services and social responsibility to not harm society’s people and enhance their living standards. As such organizations are bound to support their surrounding society which in turn increases people’s trust, relationships, sales, and profit, and secures the future of the organizations.