Importance of Management

Importance of Management full Notes

1. Principles & Practice of Management By: Smt.UMA MINAJIGI REUR HEAD, DEPT. OF COMMERCE & Management Smt. V G Degree College for Women, Kalaburagi Part 4 Importance of Management

2. Meaning of Management: Management is the art of getting things done by a group of people with the effective utilization of available resources. There are various definitions given by various management gurus but simply management is the process consisting of the functions of planning, organizing, staffing, directing and controlling the operations to achieve specified objectives

3. Importance of Management Management has become crucial not only for the organisations but for the society too. Urwick has commented that : “No Ideology, or political theory can win greater output with less efforts from a given complex of human and material resources, only sound management. And it is on such greater output that a higher standard of life, more leisure, more amenities for all must necessarily be found”.

4. Importance of Management The importance of Management may be traced in the following contexts: 1. Effective Utilization of Resources: The resources are scarce in nature and to meet the demand of the society, their contribution should be maximum for the general interests of the society. Management not only decides in which particular alternative a particular resource should be used, but also takes actions to utilize it in that particular alternative in the best way.

5. 2. Development of Resources: Management develops various resources, human as well as non-human factors. Lawrence Appley has emphasised that management is the development of people. Through the development of resources, management improves the quality of lives of people in the society. Importance of Management

6. Importance of Management 3. To incorporate innovations: Changes are occurring at a very fast rate in both technology and social process and structure. These changes are to be incorporated to keep the organizations alive and efficient. Business organizations are moving from primitive to sophistication. Therefore, they require high degree of specialization, high level of competence, and complex technology. And all these require efficient management .

7. Importance of Management 4. Integrating various Interest Groups: In the organized efforts, there are various interest groups and they put pressure over other groups for maximum share in the combined output. The interest groups are ; Shareholders, employees, government, etc. In the current advanced and complex society, more such pressures is on the organization. An efficient Management is one which balances these pressures from various interest groups.

8. Importance of Management 5. Stability in the society: Management provides stability in the society by changing and modifying the resources in accordance with the changing environment of the society. Emphasis is new inventions with new technology. Management provides integration between traditions and new inventions, and safe guards society from the unfavourable impact of these inventions so that continuity in social process is maintained.

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