Management in businesses and firms is the function that coordinates and help in developing the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively. It helps in optimum utilization of resources. Management includes planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the desired goal and objective with optimum usage.
A business can never survive without proper management because management is a very important means of support for it. Management is related with obtaining maximum prosperity along with minimum efforts. Management is very essential where group efforts are required to be directed towards achievement of common goals.
It is said that anything minus management amounts to nothing in business. The main task of management is of getting things done through others. Few underestimate the importance and role of management in business but it helps in accomplishing and achieving objectives and goals with more efficiency.
Management creates teamwork and team spirit in people by developing a good and sound organizational structure. It helps in bringing the human and material resources together and motivates for the achievement of goals.
The available resources of production are put to use in such an optimum way that all kind of wastages are reduced to a minimum. If the managers in any business are not good at their job, nothing more can be expected from the people working under them. The motivation and working level of the employees is directly related to good management. Management creates and maintains an environment that results to higher efficiency and performance in firm.
A business enterprise always operates in a constantly changing environment. Changes in the business environment generates risk but also provide opportunities for growth in it. Management is easy to understand but it’s really very difficult to define in a universally acceptable way. The term Management is used in different ways. Basically it refers to the process which is followed to achieve organizational goals (a process).
The success of any business depends mainly on the effectiveness and work skills of its managers. It is very important for good managers to make the right decisions and ensure that the business is able to take advantage of any opportunities open to it. Along with it, it is very important for good managers to protect the business by anticipating and acting against various and uncertain threats to its welfare.
Importance of management can be described by following points:
1. Management is a process – Continuous, Social, and Unique:
Management is a continuous process because an organization goes on regularly and it always needs solutions to problems on a continuous basis. A process always has a beginning and an end, management begins with planning and ends with control and again restarts with planning. It is a social process because it includes managing by people (i.e. employees and managers) for the people (customers) and of the people (investors).
2. Management is a science, an art, and a profession:
A science is a systematized body of knowledge which is formed through use of scientific method (through observations and research), as we have studied that there always exists a cause and effect relationship and has universal application.
3. Management influences and is influenced by environment:
Management does not work in air. It has to face the internal and external environment. Internal environment is controllable and external environment is non-controllable. Internal environment consists of employees, processes and systems. External environment comprises economic, , political, legal and ethical environments.
4. Management’s is related to take decisions:
Since management is interdisciplinary , it makes use of multiple and inter-disciplinary knowledge to take decisions and makes use of authority to get those decisions enforceable.
5. Management is goal-oriented:
The process of management is a purposive activity and starts and ends with the goals. All organizations, both for-profit and not-for-profit, are directed towards goals. It is the responsibility of management to attain those goals.
Management always begins with goals. If there are any hurdles in performance and goals, management tries to bring the two in tune with each other. Management is most concerned with both efficiency and effectiveness.
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