Management is concerned with human beings whose behavior is highly unpredictable. Ever since people began forming groups to achieve goal, they could not achieve as individuals. Managing has been essential to provide the coordination of individual’s efforts. Management is found in every walk of life.
Management does not perform specific jobs. It motivates other people to perform specific jobs. Management is not doing the work but getting the work done through the effort of others.
Management brings together basic resources popularly known as 6 M’s – Men, Material, Machines, Methods, Money and Market.
This helps to achieve the expected results quickly and economically in terms of
(a) Production
(b) Sales
(c) Profit and
(d) Goodwill in the Market
The importance of management in business is universally accepted. It acts as a driving force in business. Modern business is highly competitive and need efficient and capable management. It is through management that business activities are organized and conducted efficiently and objectives are achieved.
The following points will suggest the importance of management :
(1) Optimum use of resources: management facilities optimum utilization of available human and physical resources, which leads to progress and prosperity of a business enterprise. Even wastage of all types are eliminated or minimized.
(2) Competitive strength: Management develops competitive strength in an enterprise. This enables an enterprise to develop and expand its assets and profits.
(3) Cordial industrial relations: Management develops cordial industrial relation, ensures better life and welfare to employees and raises their morale through suitable incentives.
(4) Motivates employees: It motivates employees to take more interest and initiative in the work assigned and contributes for raising productivity and profitability of the enterprise.
(5) New techniques: Management facilities the introduction of new machines and new methods in the conduct of business activities. It also brings useful technologies developments and innovation in the management of business activities.
(6) Effective management: Society gets the benefits of efficient management in terms of industrial development, justice to different social groups, consumer’s satisfaction and welfare and proper discharge of social responsibilities.
(7) Expansion of business: Expansion growth and diversification of a business unit are possible through efficient management. It creates good corporate image to a business enterprise.
