Importance of Management
1. Effective Utilization of Resources
The resources are scarce in nature and to meet the demand of the society their contribution should be maximum. Management of these resources means to make optimum utilization of all the available resources. Management helps in creating and maintaining an environment conductive to highest productivity.
2. To Incorporate Innovations
Today technology is changing at a very fast pace. These changes need to be incorporated by the organizations to keep up with the competition. Management is not only science but an art also and therefore creates new ideas, new concepts, new products and new methods to improve the efficiency and to achieve excellence.
3. Development of Resources
Management is a continuous process and does not stop anywhere. It believes there is always a scope of improvement and therefore it keeps on developing the available resources.
4. Integrating Various Team Groups
Management is to integrate various individuals to work efficiently so that the group can realize its objectives. Management looks for mutual co-operation and co-ordination among all group members. Management is to reconcile the objectives of the group with those of its members so that each one is motivated and starts working towards accomplishing the objectives.
5. Stability in the Society
Management provides stability in the society by changing and modifying the resources in accordance with the changing environment of the society. Management provides integration between traditions and new inventions and safeguards society from the unfavorable impact of these inventions so that continuity in social process is maintained.
6. Development of the Nation
Efficient management is the crucial factor for the economic and social development of the country. Management may increase national wealth by increasing the income and living standards of people. Management is regarded as the key to the economic growth of a country.
7. Minimization of Cost
In this cut throat competition it is very important to minimize the cost to allure the customer for the sustainable survival. Management plays an important role in reducing costs and improving efficiency and thus enabling the enterprise to be competent to face competitions and earn profits.
8. Employment Generation
Management plays an important role in setting up and expanding business enterprises and thereby opening new vistas of employment. Management helps to satisfy the economic and social needs of the employees and thereby creating a happy and prosperous society.