written by | September 29, 2022

What Is the Importance of Management? Functions, Objectives Explained

×

Table of Content


To accomplish their objectives, businesses and organisations need good management. A company's business operations are organised and coordinated at various levels of management. You might want to find out more about what management does if you're interested in pursuing a career in management. This blog defines management and analyses its distinctive features, goals, levels, and responsibilities. 

Did you know? Within the initial five years of operation, about 90% of start-ups fail miserably, and of those, nearly 90% fail as a result of bad management. 

What Is Management? 

Management is the practice of organising a company's actions and resources to accomplish certain objectives as effectively and efficiently as feasible. In management, efficiency is the ability to complete tasks effectively and economically. In order to provide measurable results, tasks must be completed within predetermined deadlines. 

Also read: Successful Retail Business Ideas - Which is the Best Retail Business in India?

Characteristics of Management 

Multi-dimensional 

Most managements oversee and control a business or organisation's service or production process. Managers collaborate closely with their co-workers and offer direction. A manager views each employee as both a unique individual with unique requirements and as a participant of the bigger team. Managers must persuade their teams to use each member's special abilities to advance the objectives of the company in order to be effective. 

Dynamic 

No matter the economic, socio-political, or technical developments in its surroundings, management is a dynamic role that constantly changes and evolves. For instance, the quick adoption of monitors and electronic gadgets may decrease revenue for a printing firm. Whether the business can continue to exist relies on how well its management can adjust to changing market demands. 

Intangible 

Although management does not represent a material good, its existence may alter how an organisation runs. Belief systems, rules, and social interaction make up management. Target success rates, staff satisfaction levels, and general operational comfort all benefit from effective management. 

Objectives of Management 

Generally, management might have three different sorts of objectives: 

Organisational Objectives 

All parties involved in the business, such as the authorities, consumers, and employees, should have their interests taken into account by the management. For the company, managers are in charge of creating and accomplishing goals. An organisation's main goal is often to expand by making the most of its people, material, and financial capacity. There are three universal organisational goals for any business: 

Survival 

A business must make enough money to meet its operating expenses.  

Profit 

Profit serves as motivation and is necessary to pay for the unforeseen expenses and risks involved in operating a firm. 

Growth

Sales volume, employee count, and capital expenditure increase may be used to gauge a company's development. 

Also read: What Are The Types of Business Entities? Know All About Business Entities

Social Objectives 

The management is partially accountable for generating positive social effects through their job. Businesses opt to achieve this in a variety of ways. Some may use equitable salaries and opportunities, while others may use environmentally sustainable production techniques. Larger businesses frequently support or finance efforts that offer necessities like education and health care. Companies frequently start CSR (Corporate Social Responsibility) initiatives that assist society in various ways depending on the size of their activities. 

Personnel Objectives 

Generally, management makes decisions about their employees' monetary incentives, wages, benefits, and social programs. Corporate vacations and holiday bonuses, as well as other events that foster peer appreciation and connection, support the social growth and advancement of the workforce. 

Importance of Management 

Helps in achieving group goals: Individual efforts are given a shared direction by effective management, which directs them towards attaining the general objectives of an organisation. 

Increases efficiency: Efficiency lowers expenses and boosts productivity across the board for an organisation. 

Creates a dynamic organisation: To keep the organisation's competitive edge, management assists its staff in adjusting to innovation. The ability of an organisation to adjust and respond to change effectively can make the difference between success and failure. 

Helps in achieving personal objectives: Every term member is better able to fulfill their own goals due to effective management, which promotes teamwork, cooperation, and devotion to the organisation's shared objectives. 

Functions of Management 

The objective of management is to coordinate the actions of many people within an organisation to achieve a shared objective. The following are a few of the managerial duties: 

Planning: 

Making a schedule of the actions that must be carried out in order to accomplish a certain objective is known as planning. Supervisors carry out planning to prevent wasting both resources and time, and planning should be done in an organised way. A thorough course of action reduces ambiguity, risk, wastage, and misunderstanding.

For instance, to make up for the losses from the previous quarter, the senior management of a small organisation would establish a high sales goal for one quarter. The founder of a start-up may want to formally pursue partnerships with the governments and other significant organisations in order to increase the scope of their activities. 

Prioritise Organisation 

The goal of an organisation is to foster a mutually beneficial connection between a company's human, economic, and material resources. An effective plan of action is one that satisfies all success criteria. Administration, coordination, and the recognition and classification of business operations are all aspects of organising. 

For instance, senior administrators may distribute resources or money to various branches. The branch managers must then distribute funds to their departments per their operating needs. The heads of departments then keep tabs on how the money is used every day. 

Improve Staffing 

The process of staffing entails assembling a workforce for the organisation. Business hiring procedures are frequently drawn-out and detailed. Management specifies the professional positions that must be filled in order for the organisation to function effectively in each of these functions. The management then chooses employees for those positions through the hiring procedures. After being chosen, applicants undergo training and become business employees. 

As part of staffing, supervisors are also in charge of giving out promotions and evaluations. 

For example, a digital marketing firm could decide to spread its operations to more nationwide locations. The senior management can then hire a manager for each site, marketing staff, graphic designers, accountants, and a human resources specialist. The company's staffing policies may also recommend that, after two months of training and a year of employment, one marketing employee and one graphic designer be promoted to the department lead position. 

Provide Direction 

A manager's primary responsibilities include supervising, inspiring, and directing the employees. Directing entails taking the necessary actions to set the project in motion and keep productivity high to achieve organisational objectives. Motivating the team to achieve organisational goals calls for exceptional leadership, management, and interpersonal abilities. 

For instance, middle management frequently develops policies in response to instructions from senior management. Operational managers are more concerned with overseeing how the business is run on a daily basis. 

Monitor Quality 

Businesses operate according to predetermined performance criteria. A manager ensures that the group's production satisfies the company's output standards in terms of quantity and quality. Supervision at every stage keeps overall quality standards from deviating from those set-out. 

For instance, in a fast-food chain, managers frequently micro-manage cash registers, cooks, delivery drivers, and waiters to ensure the quality of the meals and the level of service at their location are up to par. These quality standards are mandated by top management, and they typically change over time. 

Also read: What Is a Business Advisor, Meaning, Roles & Average Salary

Conclusion: 

Management is the process of creating and fostering an atmosphere in an organisation where people, typically working as a team or in groups, successfully complete predetermined tasks. An organisation's success and ability to function depend on competent management. The management develops strategies for achieving objectives and resource optimisation at the lowest possible cost. 
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What is the importance of management and organisation?

Ans:

Organisational management ensures that resources are used as efficiently at work via careful planning and oversight. Employees have a feeling of direction due to organisational management. The workers are fully aware of their positions within the business as well as their duties and obligations.

Q: What is the importance of a management essay?

Ans:

Utilising developing technology and enhancing working conditions are made possible by efficient management. Additionally, it assists businesses in achieving their objectives and improving decision-making, productivity, and profitability. As a result, management is essential to every firm since it requires coordinating the actions of the human resources department.

Q: Why are management skills important? Give the best example.

Ans:

It boosts productivity and precision. In order to avoid waste of other resources, management also ensures that the operation is standardised. For instance, management has to ensure that a sales-oriented employee exclusively works in sales and never in another area.

Q: How management impacts?

Ans:

Establishing effective working connections with employees at all levels. 79.9% of managers polled suggested it. According to the survey, the capacity to establish trusting connections with employees at all levels is considered the most crucial managerial skill.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
×

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.