Management can be defined as the process of designing and nurturing an environment in an organization in which individuals, usually working in a group/groups, accomplish defined objectives efficiently. The functioning and success of an organization depend upon the existence of good management. It is the management which architects the ways to achieve the goals and ultimate optimization of resources at a minimal cost. The following article aims to describe the importance of management, objectives of management in business studies, the answer of ‘explain the importance of management’, aims and objectives of management, and what is the importance of management etc. in a vivid manner.
Management is the total of all the activities that ensure the smooth and efficient running of a business or non-profit organization. The importance of management is that it arranges all the four factors of production i.e. men, materials, money and machines, assembles and organizes them, and integrates them in an effective manner in order to achieve group goals which are usually pre-determined.
To explain the importance of management in the present business scenario, the following points have to be taken into account:
The management coordinates different factors of production in an optimum manner to produce goods or services.
It directs and unifies group efforts towards a common organizational goal.
The managers foster a good organizational climate by establishing an effective grievance handling system, reward system and problem-solving system, etc.
The ultimate function of the management is to maximize the organization’s profit by reducing the cost of production. This is nothing but productivity enhancement.
It faces competition strategically.
It makes proper use of scientific and technological advancements to devise a proper growth strategy for the enterprise.
The management creates and maintains a good organizational structure and adapts to exciting new opportunities from time to time.
It acts as a creative force and adds value to every element of organizational functioning.
Therefore, a dynamic, learning-centric organization is only created with the help of efficient management. All the above points summarized the answer to what is the importance of management.
There is a huge importance of management in business studies. Broadly, the objectives of management in business studies can be divided into three categories- organizational, social and personal.
To ensure the survival of the organization
To plan the growth of the organization
To operate in an environmental-friendly manner
To produce quality goods at reasonable rates
To create employment and generate income
Higher-end requirements or self-development requirements
Taking a micro view at the objectives of business management, they can be explained as below:
1. Surplus Creation: In the event of production, the management must aim towards surplus creation which then can be used to increase profitability.
2. Optimum Utilisation of Resources: All the resources of an enterprise- men, machines, materials and money- must be utilised in an economic way to earn profits that are sufficient to fulfil the interest of stakeholders- proprietor, employees, customers, associates, government and society.
3. Market Creation: A stable market has to be created by the organization to sell the produced goods or services.
4. Ensuring the Sustainability of the Business: The business model must be devised in such a way that it can sustain on its own. It is then up to the management to plan its growth and long-term profitability.
The other objectives of business management are producing more value for customers by ensuring a regular supply of goods and services, maintaining discipline and morale of the employees, mobilising right talent within the organization, improving overall performance and minimising all elements of risk.
The importance of management in society can be explained from the very fact that society forms the external environment of the enterprise. Therefore, it has certain responsibilities towards it. These are:
Creating employment and generating income
Not causing harm to the environment
Ensuring the upliftment of the society by indirectly fostering a learning environment.
Facilitating infrastructure development
Meeting the demands of society by producing value-added products/services
The importance of business management in management studies is immense. It furnishes the students with the knowledge of management science and trains them to take critical responsibilities of running a business when they join an organization.
1. What are the Human Objectives of Management?
Ans. The human objectives of management are as follows:
1. The Welfare of the Employees
The primary objective of earning profit entirely depends upon the hard work of the employees. The profit of the firm gets increased only by the employees of the firm. It is a key task of the management to look after the welfare of the employees.
2. Customer Satisfaction
Reasonable price is important in providing goods and services to the customers. Every business is meant only for customers. Hence, the requirements and observations of customers are important.
3. The Satisfaction of the Shareholders
Another significant task of the management is to look after the satisfaction of the shareholders. The organization is run by the capitals of the shareholders.
2. What are the types of Management?
Ans. There are different types of management in an organization. Some of the important ones are:
Marketing and sales management
Finance and accounting management
Public relations management
Supply chain management
3. What are the functions of a Manager?
Ans. The functions of a manner are planning, organizing, staffing, leading and controlling. Coordination of factors of production is also an important activity that falls under the ambit of management.