Management is the process of dealing with or controlling things or people. It is the association and
organization of the activities of a business in order to achieve defined goals. Management is often
included as a factor of production alongside machines, materials, and money.
According to the management guru Peter Drucker, the basic duty of management comprises both marketing and innovation.
The practice of modern management originates from the 16th-century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More.
Management entails the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization’s resources in order to achieve the objectives of that policy.
According to Peter Drucker, Management is what the modern world is all about.
That means that all the developed countries have developed due to effective and efficient management. Our society could never develop to the state it is today without a steady stream of managers to guide its organizations.
Top Importance of Effective Management
The well-known management author Peter Drucker emphasized this point when he said that Effective
Management is perhaps the main resource of advanced countries and the most desirable resource of
developing ones. The significance and importance of effective management are thus described below:
1. Growth and Sophistication
President Roosevelt of U.S.A. once said – government without
good management is a house built on sand. Effective management manages its employees and
business in a better way that increases productivity, innovation and cuts absenteeism, wastage
and lack of motivation and ultimately results in the growth of the organization and every
individual in the organization. Thus, management guides the organization towards the
achievement of its goals. The meaning of management is given by its goals and objectives and
that is why fulfilling these the organization grows and becomes more and more sophisticated
2. Inspires initiative
Initiative means to the necessary thing at the necessary time without any
other external influence or orders. A good management always inspires initiative and provides
empowerment to its employees. We can see clearly where do empowerment and initiative
take an organization if we look at Google. Their management system there is very flexible and
innovative, yet they have managed their people so well and have gone through so much
3. Optimum use of resources
We are always let with the prime economic problem of scarcity of resources and a lot of alternatives of one resource. Hence, it is management’s duty to utilize the resources in the best possible way. Management brings all the resources to its optimum use and thus goes towards productivity for the organization.
4. Effectiveness and Efficiency
Effectiveness is related to how well a resource has worked and brought returns for the organization. And efficiency is the relationship between costs and returns. A higher efficiency means more return and less costs for the business. Management is held responsible for all these matters like efficiency and effectiveness of the organization.
5. Planning and Forecasting
It is the managers’ duty to plan for the future and forecast the business conditions of the organization. Without planning it is not possible to go towards success. The competition is intense in the present market and it requires a lot of comprehensive planning if anyone is willing to develop quickly. Thus, a better management signifies better planning and forecasting for the organization.
6. Lifts Improvement
Management encourages innovation in the organization. Innovation means new ideas, new methods, new machines and procedure, new technology, new products, new marketing campaigns etc. It signifies the novelty of the organization. It is the duty of the management to inspire these activities and take the organization to a level of organizational uniqueness.
7. Creates a Better Brand Image
A better management ultimately results in better service by the company and better marketing. This ultimately creates a stronger brand image in the minds of its customers and this ensures a longer lasting brand loyalty from them. At present, a business is all about brand. It is how strong your brand is and how strongly your organization fits into the image of your brand that boosts sales, brings customers and earns huge revenues in the present
8. Motivation for the employees
We know many theories of motivation of employees which we learn in our Human Resource Management and Organizational Behavior Courses. But whose duty is it to take those steps to ensure the motivation of the employees?
Yes, it is the duty of the management to see that their employees are satisfied and love the work they do. It motivates employees by providing them with financial and non-financial incentives. These
benefits and incentives boost up the effectivity and efficiency of the employees and ultimately
results in more productivity for the organization.
9. Perfection of Work Conditions
Management distributes some of its profits with the employees. It provides the workforces with good working environment and conditions. It also stretches the workers many financial and non-financial motivations. All this improves the quality of life of the workers and provides them a better working condition.
10. Encourages Team Work
Managers can do effective communication among the employees to convey the goals of the organization to them more clearly. They can listen to their problems and help them solve them. In the end, it’s all about trust. There needs to be trust among everyone in the organization. This eventually results in teamwork. All management leaders have inspired teamwork and it is a must for the betterment of the organization.
11. Brings on Better ROI
At the end of the day, management wants to make profits. It does all these things for the whole year so that they can have revenues in excess of costs. And when the organization has profits it has a substantial return on investment. A better management will bring a better return on investment for the company. It will bring in more profits and cut down more problems and costs and thus, in the end, will bring in betterment for every one of the organization.