Business Studies Part I
Business Studies Part II

Importance of Management

  1. Management helps in achieving group goals : Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation.
  2. Management increases efficiency: The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.
  3. Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change
  4. Management helps in achieving personal objectives: A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership the management helps individuals to develop team spirit, cooperation and commitment to group success.
  5. Management helps in the development of society: An organisation has multiple objectives to serve the purpose of the different groups that constitute it.

The various reasons mentioned in the above paragraph that have made management so important are stated below:

  1. Management increases efficiency as it leads to reduction in costs due to optimum utilisation of resources.
    “As a result of her excellent managerial competence the company is able to reduce costs and increase productivity.”
  2. Management creates a dynamic organisation so that it is able to incorporate the corresponding changes in its working with any change in its business environment.
    “The company belongs to infrastructure sector, wherein regular amendments are made in the government regulations and policies. She holds regular meetings to ensure that people in her department are not only aware of the related changes but are also able to adapt to these changes effectively. This helps the company to maintain its competitive edge.”
  3. Management helps in achieving personal objectives of the employees in the organisation.
    “She motivates and leads her team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective.”
    “The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc.”

Management helps in the development of society by contributing effectively towards it in multiple ways.”In the process of fulfilling her duties for the growth of the organization, she helps in providing competitive services, adopting new technology, creating more employment opportunities etc. for the greater good of the people at large.”