Interrelationship Between Management Functions

IMPORTANCE OF MANAGEMENT

The importance of management to a modern business is discussed below:

1. Accomplishment of Goals. It is the management which determines the goals of the organisation and of various departments and functional groups. The goals are communicated to the employees to seek their cooperation. All organisational activities are directed towards the organisational objectives. Clear-cut definition of goals is essential for the success of any organisation.
2. Effective Utilization of Resources. Management ensures optimum utilization of resources. Through planning and organisation, management eliminates all types of wastages and achieves efficiency in all business operations. Management motivates workers to put in their best performance. This would lead to the effective working of the business.
3. Sound Organization. Management establishes sound organisation for the accomplishment of the desired objectives. It clarifies authority responsibility relationships among various positions in the enterprise. It fills various positions with persons having the right qualifications and training. Management also provides the workers with proper environment and encourages the spirit of cooperation.
4. Providing Vision and Foresight. Management keeps itself in touch with the external environment and supplies vision and foresight to the enterprise. It helps in predicting what is going to happen in future, which will influence the working of the enterprise. It also takes steps to ensure that the enterprise is able to meet the demands of changing environment.
5. Harmony in Work. In an organization, employees come from different backgrounds, they have different attitudes and different styles of working and if everyone start following his own styles, it can lead to chaos and confusion in the organisation. By giving directions managers bring uniformity and harmony in the action of employees.
6. Helping the Employees in Achieving Personal Objectives. Every manager motivates and leads his team in such a manner that individuals member are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership management helps individuals to develop team spirit, cooperation and commitment to group success.
7. Development of Society and Nation. Management plays a pivotal and crucial role in economic and social development of a country. The development of a country lies on the quality of management and available resources. Management can increase the national income and standard of living of the people by producing maximum cost. Thus management is important at national level and is regarded as a key for the economic growth of a country.