Need and Importance of Management
Need and Importance of Management
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6. 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.
7. 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.
8. 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 I changing needs of societies. It is responsible for growth and survival
of organization.
9. 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 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.
10. Encourages Initiative:
Initiative means to do the right thing at the right time without influenced by the
superior. The employees should be encouraged to make their own plans and implement
these plans. Initiative gives satisfaction to the employees and success to organization.
11. Encourages Innovation:
Management encourages innovation in the organization. Innovation brings new ideas
new technology and new techniques. It makes organization more competitive and
efficient.
12. Facilitates Growth:
Management makes optimum utilization of resources. It reduces wastage and increase
efficiency. So through management, organization grows and progress.
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13. Immproves Life
e of the Worrkers:
Management
M t shares pro
ofits with th
he workers. It provides good envirronment. It gives
in
ncentives to the workerss and thus im mproves the quality of life of the wo orkers.
14. Immproves Corrporate Image:
Good
G managgement prod duces qualitty products and provid des good seervices. Thiss will
im
mprove the ccompany im mage.
15. Motivates Em
M mployees:
Management
M t motivates employees b by providingg them incen ntives. This hhelps in boo
osting
productivity o
of the organization.
16. Optimum Uti
O ilization of R
Resources:
Management
M t uses available resourrces and acchieves resu ult of the o
organization with
greater outpuut. Optimum m use of reso ources makees organizatio on more pro oductive.
17. Reduces Was
R stage:
Management
M t reduces wastage of hu uman, mateerial and finaancial resou
urces. Wastaage is
reeduced by proper planning and conttrol.
18. Im
mproves Rellations:
Management
M t improves relations between i ndividuals, groups, deepartments and
between leve
els of managgement. Bettter relationss lead to bettter team wo
ork.
19. Encourages TTeam Work:
Management
M t encourage
es team wo
ork and cooordination. SSo, it bringss success to
o the
organization.
Prof. A. R. So
P omroo
Dep partment of Education
Govt. E merson Colllege, Multann
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