Importance of management?
What is the importance of management education in management functions for any organisation?
The answer to this question is simply that supervisors and managers must not only have vocational, technical knowledge about their specialised field of operation in the organisation, but also knowledge about management functions and principles. The work component of any job rests on two pillars, namely technical work and management work.
The importance of management education, management development and management training cannot be over emphasised. Whether the knowledge about management principles is obtained through formal study programs at Universities or internally through on the job training or through external seminars or programs, it is of the utmost importance for any person in any job in life; even for the self-employed, entrepreneurs, Kings, Presidents of Countries, the richest people in life and even the lowest level of jobs.
Essential work environment elements to be managed:
The things or elements, which any person has to manage are:
1. Operations (actions)
2. Finance (money and resources)
3. People (human relations)
4. Information (needed information for wise decisions)
5. Time (your own and that of others)
The Importance of Management can be expressed as follows:-
- 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. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals.
- Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources.
- Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction.
- Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone.
- Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.
- Essentials for Prosperity of Society - Efficient management leads 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 improves standard of living. 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. Organization comes with new products and researches beneficial for society.