Management Notes

Reference Notes for Management

Importance of Management – Introduction to Management | Principles of Management

Importance of Management

Management aims to achieve maximum prosperity with a minimum amount of effort. Management is necessary whenever group efforts need to be directed at achieving a shared goal. During this era of management consciousness, the importance of management cannot be overemphasized. It has been said that anything without management is nothing. Koontz and O’ Donnel have correctly observed that “management is the most important human activity because its aim is to work through others”. Business activities are significantly impacted by management.

Management is the catalyst that transforms the inputs of labour, capital, and raw materials into productive outputs. The management of any country plays an important role in its growth.  In the history of business, the emergence of labor as an essential factor of production is a significant event. The classical theorists emphasized the importance of land, labour, and capital in producing goods and services. With the growing complexity of business and the consequent increase in internal and external competition, management has become a crucial factor of production.

During the past one and a half decades, management has been recognized as important for developing underdeveloped economies. In developed and underdeveloped countries, management effectiveness differs significantly. It is true that the function of development is not only dependent on capital, physical and material resources, but is also dependent on their optimum utilization. A manager who is able to use science and technology effectively can produce not only more outputs with given resources, but also expand them.
Through more efficient and effective management of our businesses and other social organizations, we can achieve a higher rate of economic growth in our country despite existing physical and financial resources. As a result, underdevelopment is now becoming increasingly recognized.

Some of the major importance of management are as follows:

1) Optimal Utilization of Resources

Optimal Utilization of Resources

In terms of productivity, sales, profits, and employee satisfaction, a good manager has the capability of producing maximum results with the maximum input, in terms of physical resources and human effort. Management leads to maximum efficiency. Effective management uses all human and physical resources.

In turn, this leads to efficacy. By choosing from among different possible uses, management maximizes the utilization of scarce resources. Experts, professionals are utilized, resulting in better utilization of skills, knowledge, and prevent wastage. In an environment where employees and machines are performing at their maximum, there is no underutilization of resources.

The following points will explain why management is important for optimal resource utilization:

  • Planning: Management helps with resource allocation by setting specific goals and objectives, and creating a plan to attain them. This includes determining how to allocate the resources effectively.
  • Organizing: In order to maximize the efficiency of the organization, management determines how resources should be organized, including defining roles and responsibilities and allocating them appropriately.
  • Staffing: A manager’s responsibility is to improve the organization’s performance by ensuring that the team has the right skills and experience to utilize resources efficiently. This includes recruiting, hiring, training, and managing the performance of employees.
  • Directing: By setting expectations, communicating priorities, and providing guidance and support, management ensures employees are working towards the organization’s goals.
  • Controlling: Managing resources is the process of monitoring progress towards goals, analyzing data, and making sense of the information gathered to ensure that resources are being used effectively.

Management plays a crucial role in maximizing resource utilization. It must plan, organize, staff, direct, and control to ensure that the organization utilizes its resources efficiently.

2) Management is Goal Oriented

Management is Goal Oriented

Management is concerned with achieving specific objectives. Management is always determined by the achievement of objectives. Successful management is measured by the extent to which objectives are achieved. In order to achieve the objectives of an organization, management plays a crucial role. A proper combination of human and non-human resources is necessary to achieve goals.
Effective management is oriented towards achieving goals. Management involves planning carefully, organizing resources appropriately, hiring competent people, and providing the necessary guidance to reach predetermined goals. The goal is to keep everything on track. This prevents unnecessary deviations, overlapping efforts, and waste motions. Ultimately, all these factors contribute to realizing goals with maximum efficiency.
The following points will explain how management is goal oriented:
  • Organizational objectives and goals are defined by management.
  • In order to achieve these goals, it helps to align the organization’s efforts and resources.
  • A plan of action is established by management to reach the company’s goals.
  • In order to accomplish the set objectives, it helps in prioritizing tasks and allocating resources efficiently.
  • It is the responsibility of management to monitor and take corrective action if necessary toward the achievement of the goals.
  • The goal is to make sure the organization achieves its desired results and outcomes.
  • An organization’s management helps create a sense of purpose and direction.
  • Having everyone working toward the same goal increases the organization’s efficiency and effectiveness.
  • The management process provides a framework for evaluating results and measuring success.
  • Providing a clear understanding of the desired outcomes and objectives facilitates decision-making.

3) Management Improves Efficiency

Management Improves Efficiency

The goal of the manager is to reduce cost and improve productivity with minimal resource waste. The management emphasizes efficiency and effectiveness through planning, organizing, staffing, directing, and controlling. By minimizing the wastage of resources, such as time, money, and effort, management improves efficiency. Managing all the activities carried out by an individual to accomplish a common goal helps in the optimal utilization of an organisation’s resources. 

The following points will explain how management improves efficiency:

  • The purpose of management is to maximize the efficiency and effectiveness of resources (such as people, time, and money).
  • By identifying bottlenecks, streamlining processes, and reducing waste, it helps increase efficiency.
  • Management helps employees understand what to do and how to do it by setting clear goals and objectives.
  • Employees are held accountable for their performance because they know their responsibilities.
  • By constantly reviewing and refining processes and systems, it fosters a culture of continuous improvement.
  • Management is also responsible for providing employees with the necessary tools, equipment, and training to perform their duties effectively.
  • As well as prioritizing tasks, management also helps to ensure that the most important tasks are accomplished first.
  • Rework and corrections are reduced, reducing the need for time-consuming and resource-intensive rework.
  • It is also possible to improve efficiency by promoting communication among team members under good management.
  • The management can help employees improve and grow by monitoring their performance and providing them with feedback.

4) Management helps in achieving Personal Objectives

Management helps in achieving Personal Objectives

Managers who are efficient are those who bring maximum prosperity for both employers and employees. The managers lead the people in a way that enables the individual goals of employees to be achieved along with the organizational goals. Organizational and individual goals only point in one direction. Individuals want to earn more money, and organizations want maximum production. Production increases employee earnings. Therefore, both groups will be satisfied.

Developing personnel’s skills, which also contributes to the benefit of the organization, increase personnel’s confidence and appreciation level. An employee’s skills or ideas can also fulfill organizational objectives, and when employees are confident about their jobs, they dedicate their full efforts to a successful project.

As a result of recognition, management promotes employees to higher positions, resulting in increased salaries. Salary and perks increase when an employee’s lifestyle advances and he and his family enjoy his working life more. Hence, personal objectives are achieved.

  • Individuals can identify and articulate their goals with the help of management, which provides a framework for organizing and prioritizing personal objectives.
  • By breaking down larger goals into smaller, more achievable steps, an action plan can facilitate the achievement of personal goals.
  • Individuals can stay motivated and focused over time by providing structure and accountability to their management.
  • Individuals can also benefit from effective management by balancing competing demands and priorities, allowing them to allocate time and resources effectively.
  • Management can assist individuals in staying on track by providing regular feedback and check-ins.

5) Management helps in Development of Society

Management helps in Development of Society

The purpose of efficient management is to achieve multiple objectives, and to consider social obligations, including obligations towards employees, customers, suppliers, etc. It is devoted to offering quality goods, assisting in competitive salaries, creating job opportunities, etc. By increasing production, management also contributes to an increase in GDP (gross domestic product) and leads to growth of a nation.
Management improves the standard of living of people by
(i) utilizing scarce resources efficiently and turning a profit;
(ii) ensuring the firm’s survival in the face of ongoing changes;
(iii) developing new ideas that benefit society as a whole;
(iv) developing employees’ talents and capabilities at work and motivating them to achieve their best.

6) Management creates a Dynamic Organization

Management creates a Dynamic Organization

Managers need to adapt their organisations to match changes in their environment in order to survive in a dynamic environment. Most employees in an organisation are resistant to change. By convincing employees that change is not only beneficial to the organization, it will also improve their performance in the competitive workforce, effective management motivates employees to adopt changes readily. It is important for an organization to adjust its goal according to the environment.

It takes time to transition from a familiar, secure environment to a new, challenging one. In order to maintain the competitive edge of an organization, management must help people adopt these changes by providing high quality products, generating employment, adopting new technologies, etc.

Here are some key bullet points that explain how management can create a dynamic organization:

  • Encourage experimentation and risk-taking from all levels of the organization to encourage innovation.
  • Adapt to changing market conditions and anticipate disruptions. Anticipate and prepare for potential disruptions.
  • Foster open communication and a culture of value. Establish cross-functional teams to bring together individuals with a variety of skill sets and perspectives.
  • Establish a succession plan that ensures continuity and stability over the long term by investing in leadership development programs that train managers to be effective coaches, communicators, and mentors.
  • Keep up with technological advancements in your industry. Consider investing in digital tools that can streamline processes, improve efficiency, and boost productivity.
  • Improve your products and services by soliciting feedback from your customers. Make sure all employees share the same customer-focused mission.
  • Review and assess progress toward your business goals regularly, and adjust your behaviors as necessary, in order to measure performance.
  • Ensure employees have the opportunity to learn and grow. Offer training programs, mentorships, and other resources that can help them advance their career.
  • Encourage diversity and inclusion in the workplace. Provide employees with opportunities to contribute their unique perspectives and ideas.

7) Management brings Harmony in Work

Management brings Harmony in Work

If each employee starts following his own style of working, there could be chaos and confusion within the organization. Employees come from different backgrounds and have different attitudes toward work. When managers give directions, they bring uniformity and harmony to the workplace. Management integrates Human, Physical and Financial Resources.

People in an organization work with non-human resources such as machines, materials, financial assets, and buildings. Managers coordinate human efforts with those resources. That ensures harmony between the physical, financial, and human resources in an organization.

Smirti

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