Importance of Management

"Management is what the modern world is all about.“

This statement means that all the development that has taken place in
the world is due to efficient management.

Importance of Management. It helps in Achieving

Group Goals - It arranges the factors of production,
assembles and organizes the resources, integrates the
resources in effective manner to achieve goals. ... By
defining objective of organization clearly there would
be no wastage of time, money and effort.
Optimum use of resources

• Management brings together the available resources. It makes

optimum (best) use of these resources. They are physical, human and
financial resources in such a manner which brings best results to the
organisation.
 Encourages Initiative

• Management encourages initiative. Initiative means to do the right

thing at the right time without being told or influenced by the
superior. The employees should be encouraged to make their own
plans and also to implement these plans. Initiative gives satisfaction
to employees and success to organisation.
Encourages Innovation

• Management also encourages innovation in the

organisation. Innovation brings new ideas, new technology, new
methods, new products, new services, etc. This makes the
organisation more competitive and efficient.
 Facilitates growth and expansion

• Management makes optimum utilisation of available resources. It

reduces cost and increase efficiency. It encourages team work and
motivates employees. It also reduces absenteeism and labour
turnover. All this results in growth, expansion and diversification of
the organisation.
Essentials for Prosperity of Society
• Efficient management lead to better economical production which
helps in turn to increase the welfare of people. Good management
makes a difficult task easier by avoiding wastage of scarce resource. It
increases the profit which is beneficial to business and society will get
maximum output at minimum cost by creating employment
opportunities which generate income in hands