MBA and B.tech class notes

Thursday, 20 December 2012

Importance of management

B.tech and MBA class notes



Importance of Management

Management is the catalyst and brain of industry without which no any organization can established or survive in the business environment. But, management was not know in old times as it presently seems, it became this world at the beginning of the industrial revolution when the  scale of production became vary large and need to control  its various stage of production and distribution problems in the industries. This problem required an immediate action and attention for the coordinate of work. Thus management was born in industries to solve and manage industrial conditions. Now management is worldwide in the modern industry. It becomes essential part of modern industrial world.

According to Trucker, "management is the dynamic life-giving element in every business. Without it the resources of production remain resources and never become produc­tion. Management is the catalyst without which no organization can survive and grow”.

According to Peter Druker,” management is the crucial factor in economic and social development.”

Thus the importance of management can be summarized as below-
  • Formulate objectives and goals: - Management determines the objectives and main goals for the organization.
  • Innovation: - Management encourages to using new technology and ideas. Innovation makes the organization more efficient.
  • Guidance: - Management provides guidance to the workers to work properly and efficiently.
  • Motivation: - Management motivates the workers to work hard by providing them various incentives. They also solve their personal problems.In this way they can boost the productivity and profitability of the organization.
  • Reducing cost by increasing output: - Management does work through planning, organizing and controlling; thus, it reducing the cost and increasing the output.
  • Optimum utilization of resources: - Management utilizes all the physical and human resource effectively; this leads to efficiency in organization. Management provides maximum utilization of scare resources by selecting its best possible alternate. It avoids wastage to utilize proper resources.
  • Selection of well qualified human power: - Management selects well qualified and expert human power for different works.
  • Establishes Equilibrium:- Management helps in serving an organization in its dynamic environment. It enables the organization to survive in changing environment. The environment of organization changes due to external complexities and hence management has to deal with it. To establish sound organizational structure is one of the objectives of management.
  • Useful for society: - Management provided good standard of living to his workers. And management provides useful and quality products to the consumers.

At the last, in the word of Peter Druker,
          “Management is the dynamic life giving element in every business without it the resources of production remains resources and never become production”.


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