Importance And Advantages Of Management

Importance and advantages of management Introduction:After industrial revolution tremendous acceleration and growth took place in the business & industrial world. Although, India too after independence has made a remarkable progress in development of business, commerce & industry, its pace is slower as compared with developed countries. Any organization either commercial, industrial, educational, religious or charitable, when comes into existence with a group of people joining hands for the attainment of certain objectives, needs ‘some one’ to channalize its activities towards achieving the goals. This ‘some one’ functionary is “Management” Management manages the men tactfully getting the things done, achieving the goals, gaining the profits for its organization. Management is the “live asset” of any organization. It provides new ideas, inventions and vision to the work group and integrates its efforts in such a manner as to account for best possible results. The successes, survival, smooth functioning and stability of the business organization depends upon the management. Management is the “life blood” of an organization. The role of management in a business organization is to cater to the present and future needs of the community and to create and generate wealth. An organization without good management is a house built on sand. People are individually known as managers and collectively as management. Management is a body of people who perform the managerial functions of planning, organizing, directing, coordinating, motivating and controlling

Definition:Management is a distinct process consisting of planning, organizing, staffing and controlling, performed to determine and accomplish stated objectives by use of human beings and other resourcesGeorge Terry The term management thus has several meanings depending upon the context and the purpose. Almost everyone has their own opinions about what management is. As a result there is no definition of management on which everyone agrees.

Importance of management As every gardener knows, plants are happy when they get the water they require, the same goes with management…..an organization functions effectively only if there is good management. Management is the dynamic life giving element in every organization. It is the activating force that gets things done through people. Without management an organization is merely a collection of men, machines, money and materials. In its absence the resources or production remain resources and never become production. The importance of management can be elaborated from the following points:

1. Meets challenges of changes 2. Achievement of goals 3. Optimum use of resources 4. Provides stability Provides innovation 5. Provides coordination & establishes team spirit 6. Tackles business problems 7. Helps in personality development 8. Establishes sound industrial relations

1. Management meets the challenges of changes: Change is inevitable in today’s dynamic business environment. In the era of globalization, computerization, privatization of multi-nationals, fast and growing changes are taking place. In recent years the challenge of change has become intense and critical. The management successfully manages changes in order to stay afloat amidst intense competition. The challenge of changes can be met by professional and efficient management only. Complexities of modern business can be overcome only by scientific management.

2. Achievement of goals: Management plays an important role in the achievement of objectives of an organization. Objectives can be achieved only when the human and the non-human resources are combined in a proper way. Management is goal-oriented. With a view to realize the predetermined goals, managers plan carefully, organize the resources properly, hire competent people and provide necessary guidance. Then

try to put everything on the right track. Thus, necessary deviations, over-lapping efforts and waste motions are avoided. In the final analysis, all these help in realizing goals with maximum efficiency. E.g.: at the time of our college festival “Andreams” the organizing committee which comprises of the teachers and the students work towards the goal of making it a success. Thus for this purpose they plan carefully and organize the events carefully.

3. Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. It helps in putting the resources to the best advantage, within the limitations set by the organization and its environment. It is the one and perhaps the only resource of production which generates life

and momentum in the enterprise as a whole and makes its impact by improving the competitive position and the scale in the operation.

4. Management provides stability: Smooth and continuous running of business organization depends upon the efficiency of management. Degree of stability of any organization is positively correlated with the degree of efficiency shown and adopted by the management. It is necessary to change and modify the resources in accordance with the changing environment of the society. If the business enterprises do not change according to the changing environment, their stability may be in danger. Thus the management puts in a lot of effort in managing stability because the more effective the management is in managing change , the more stable it is.

5. Management provides innovation: Innovation is a must for business and industry. Otherwise, it becomes rigid and outdated. One cannot expect to manage their way to innovation; however, management sets some of the preconditions for it. Innovation requires new ideas, improved or new suggestions, new dimension, new vision, excellent imagination etc. All this is provided by management, which makes the business and industry modern, live and dynamic. However, innovation does not start at the top of the organization. Whether an organization is on the leading edge or following an imitation strategy, innovation is the only sustainable advantage. Today a good idea is not good enough. The management must demonstrate that their idea will deliver

measurable results to the bottom line. To drive innovation and organizational success, the management needs to make effective business decisions that provide the most economic value to their organization.

6. Management provides coordination and establishes team spirit: There are some things you cannot teach. You do not breathe because someone told you to breathe. You breathe because that is what you do to stay alive. It is an essential part of your life. Even if you never receive a “Best Breather” crystal-sort-of thing award, you would still be highly motivated to breathe. As so it goes with “Team-Playing”. You do not tell people they are a team, you work together to build a team. In an organization, different activities are performed by different departments. A large number of activities are going on simultaneously in a business enterprise. The management only, has to coordinate all these activities and establish team spirit among the working groups. Coordination is very essential for achieving harmony among individual efforts towards the accomplishment of group goals. Coordination in activities, maintaining and establishing team spirit, is a great task to be done by management alone. E.g.: in a cricket team, no matter how good the batsmen played, if the bowlers were asleep during the opponent’s time to bat, the match is probably lost.

7. Management tackles business problems: Management is the only instrument with the enterprise to tackle all sorts of problems of business enterprises. Management possesses the skill for tackling the variety of problems. It very well knows how to face the critical Problems of the organization like competition of technology, problem of marketing, problem of human resources, financial resources and so on. It provides a tool for the best way of doing a task.

8. Management is a tool of personality development: Personality of an individual is the sum total of the intrinsic qualities that the individual possesses which defines his behavior. Management consists of several individuals with different personality types. Management attempts to improve the personality of personnel. Management is not only for the direction of things but the development of men also. It tries to develop all-round personality of employees through educational training. It also attempts to raise their efficiency and productivity. Management’s contribution in personality development of employees is indispensable.

9. Management establishes sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. Industrial peace is an essential requirement for increasing productivity. To this end managers try to strike a happy balance between the demand of the employees and the organizational requirements and initiate prompt actions whenever workers express dissatisfaction

over organizational rules, methods, procedures and regard-system. Conclusion: According to George Terry, Ineffective management cuts at the very roots of an economy of an organization thus leading to disastrous consequences. This suggests the importance of efficient management in the case of business organizations.

Advantages of management 1. Achievement of goals: Every management have certain missions or goals for their very existence. Goals are certain longterm achievable standards that are assigned to employees of the management. The performance of the management is ascertained on the basis of their skills and abilities to achieve the assigned goals. Goals form important parameters for the management to realize productivity and assess the level of skills possessed by its employees. A goal is a target towards which you can direct your efforts. Without a goal the management is bound to move off in the wrong direction, thus wasting time, efforts and resources. E.g.: each one of us needs to formulate a clear notion of not only what we want in college and in life but also why we want it. It’s the goal that established the blind faith that if you keep going, things will work out all right. Depending on how the management sets their goals, they can either elevate or devastate their organization.

2. Ample job opportunities: Management gives equal opportunities for each person to realize his or her full potential regardless of race, sex or creed. It also provides educational training for a fully productive and a rewarding participation in modern society as well as ample jobs and career opportunities in all parts of society

3. Motivates employees: From the management’s perspective, it is clearly beneficial to make the best of the talent held in the employee’s base as there is a huge competitive advantage in their creativity and imagination. Whenever the job requires some extra degree of risk or difficulty, then additional benefits and incentives are offered by the management to its employees. They consider it as an additional benefit as well as a boost in their morale. Management encourages workers to participate in the company’s affairs as much as possible, especially in the formulation of procedures & policies affecting them. This encourages the sense

of belongingness. Employee’s contributions are recognized and they are rewarded in the form of salaries, incentives, bonus or promotions

4. Reduces turn over and absenteeism: It reduces labour turn-over and absenteeism and ensures continuity in the business activities and operations. The very survival of an organization depends upon its management. Employees turn-over takes place when some employees leave the org & others join in their place. Since mgnt has better understanding with the employees, turnover is reduced. They provide better incentives & reduce the workload by proper mgnt so the employees are satisfied with their work environment. Proper mgnt facilitates reduction of absenteeism in the org. Absenteeism takes place when an employee remains absent without prior permission. If there is a bad accident or emergency in the department a full enquiry is held by the mgnt so that it is prevented from happening again.

5. Productivity: In today’s world, corporate brains keep track of the productivity in minute detail. Management makes human efforts more productive. It brings better equipment, plants, offices, products and services to our society. It ensures better utilization of all the factors of production. It aims to administer the economy at every step of production for fuller satisfaction of the society and higher rate of return with maximum social gain.

Importance of management in developing, under-developing and under-developed countries is more. Only the experienced, capable and efficient managers would be able to shoulder the responsibilities of the future. Increased productivity and output is the goal of countries like ours having a mixed economy. Developing countries like India have a dream of higher productivity. Management organizes the factors of production for better performance, greater productivity and increased supply of goods as well as services. Indirectly it gives a helping hand to the development of society and better welfare to the public. It is by efficient management that limited resources can be utilized more effectively to meet the demands of growing population. It helps to manufacture better products at reasonable costs and enables to bring higher returns to the share-holders and the society.

6. Complete utilization of resources: The management of resources plays a vital role in the healthy functioning of the organization. Management devises the means that are not only effective in achieving the goals but also are efficient in utilizing the resources. Resources of people, time, capital, raw materials are all finite and limited, i.e. they are scarce in nature/necessary but insufficient to achieve a competitive advantage. In today’s world, there is a fierce competition for these resources. Efficient and effective use of resources is one of the most important tasks of the management. Management basically is a “Trusteeship” of these resources and thus makes conscious efforts to make the most of these resources.

7. Skill to stand in cut-throat competition: Goods once produced are required to be marketed. Today’s market is a competitive one. To stand in such market and establish oneself is very tactful and requires expertise. Therefore marketing should be done by proper management. This essential of marketing can successfully be handled by professional management.

8. Removal of sickness: After industrial revolution many industries became sick. No one was ready to manage such sick industries. But the challenge of managing such sick industries was taken up by professional management. Today many sick units are being run profitably by the efforts of professional management only.

9. Improves standard of living: A management improves the standard of living of people by (i) Using resources efficiently and turning out profits (ii) Ensuring the survival of the firm in the face of continued changes (iii)Exploiting new ideas for the benefit of society as a whole and (iv)Developing employee talents and capacities while at work and promoting them to show peak performance.

10. Management is universal in nature: The most important characteristic of managerial functions is that they have universal applicability. Management is a universal process in all organized social and economic activities.

It is not merely restricted to factory, shop or office. It is an operative force in all complex organizations trying to achieve some stated objectives. In the absence of management, none of the organizations can walk a single step. It is necessary for a business firm, government enterprises, education and health services, military organizations, trade associations and so on. Hence, management skills can be adopted according to the required situations and a manager can successfully apply his knowledge and skill in a wide variety of enterprises.

11. Management helps in economic growth: Management is a crucial factor in economic and social development. It is obvious that the economists traditional view of development as a function of savings and investment do not produce management and economic development. On the contrary, management produces economic and social development and with it savings and capital investments. The development of a country is virtually dependant upon the quality management of its resources. It is only efficient management which enables under-developed nations to make better use of the material and human resources for the achievement of economic development. Management is thus the mover and development the consequence.

Conclusion to the presentation: As Andrew Carnegie once remarked, “take away all our factories, our trade, our avenues of transportation and our money but leave me, our organization and in 4 years I will have re-established myself”. The essence of the above statement is that an organization is not the factories, trade, transportation, money or other physical resources. Instead, it is made up of the people or human resources that are linked together in a formal structure guided by management. There is no substitute for good management. Someone had said that “good management is the exercise of common sense”. The problem with this definition is that good sense is not as common as one might wish. From time to time, gadgets and short-cuts are offered to replace management practices. But at the best they only assist rather than replace good management. Management is an influencing process, i.e. it needs to influence the people within the organization to do the work as well as the people outside the organization to get the work done. An organization without management is like a body without its soul or a rose without its fragrance and colour. Thus, to conclude an organization without an improper management cannot function effectively in good times but an organization with a good management can function effectively even in bad times.