Need and Importance of Management

Peter Ducker once remarked 'Management is what the modern world is all about'. Modern world is witnessing continuous breakthroughs in science and technology. There are developments all over the world. There is no doubt that all the breakthroughs and developments were made possible by efficient and effective management.

You are well aware that there is a wide gap of development between Europe and Asia . European countries, Japan , and U.S.A. arc highly developed as compared to Asian and African nations. You may call this gap as the 'Science and Technology gap', but in reality it is the 'Management Gap'. In other words, economies of well developed nations are well managed, whereas, economies of less developed nations arc poorly managed. Everyone knows that Japan and Germany we're totally in ruins after the World War II, but today these two nations are highly developed, thanks to better and innovative management.

You must have heard that some organizations survive and succeed during bad times, whereas, others fail even during good times. This is mainly because of the quality of management in the concerned organizations. Thus, it is evident that management plays a vital role in the success and develop­ ment of not only the business organizations but the entire nation as a whole.

The importance of management can be stated as follows:

1. It facilitates optimum utilization of resources:

Managers make use of several resources such as men, money, materials, machines, methods, etc. Efficient management facilitates optimum utilization of resources in order to accomplish results. In other words, management transforms resources into results.

2. It motivates personnel:

Managers need to create a good environment in the organization. They need to provide good working conditions and facilities to the employees. The success of management is reflected through the efforts of highly dedicated and motivated work-force. In order to have a dedicated and motivated work-force, managers provide monetary and non-monetary incentives to their subordinates.

3. It encourages initiative:

Managers of successful organizations follow the principle of en­ couraging initiative. They encourage their subordinates to show their initiative, to come out with suggestions and actions that would not only help the organization to grow and expand but also enable the subordinates to fulfill their career aspirations. Thus, it helps to im­ prove individual, group and organizational effectiveness.

4. It facilitates innovation:

Modern management is dynamic in nature. Successful managers generate innovative ideas to solve business problems or to handle their tasks and responsibilities. Again, due to freedom of self- expression, and specialization, subordinates often come out with innovative ideas. Such innovativeness helps them to carry out their activities effectively and efficiently.

5. It furthers technological improvements:

Modern world is witnessing continuous breakthroughs in science and technology. New machines, new methods and new techniques are being introduced in business activities. This is possible due to effec­tive and efficient management. Such technological developments are not only vital to the concerned organization but also to the entire nation and even to the whole world.

6. Minimizes wastages:

Managers minimize wastages by following the process of manage­ ment. Every manager at all levels needs to plan, to organize, to direct and to control activities. For instance, the production manager makes optimum use of resources through systematic production planning and control. This results in reduction in wastages of resources, and as such brings higher returns.

7. Maintains good relations:

Managers develop good relations with their subordinates. Good rela­tions are maintained by proper directions, communication and leader­ ship. The success of any organization depends largely on the smooth relations between management and employees, between superior and subordinates, between different levels, and between different depart­ments or sections.

8. Facilitates expansion and diversification :

Successful managers arc responsible for the growth and expansion of the enterprise. Without the active involvement and commitment on the part of the superiors and their subordinates, it is not possible for any organization to grow and expand. Quite often, it is the inefficient management that retards the growth and expansion of the organizat ion.

9 . Quality of workers' life:

Modern management shares the fruits of productivity and efficiency with the workers. Workers are provided not only with good working conditions but they are also rewarded monetarily and non-monetarily, and as such their quality of life enhances.

10. Assists society:

Managers are socially responsible. Now-a-days, profit is not the only motive. Successful organizations have reconciled profit motive with social responsibility. Because of this factor, the society at large is benefited in terms of quality goods at good prices, employment opportunities, and so on.