Need, Importance, Significance, Role of Management

Need, Importance of Management

Role, significance of management are given in the image below.↓

Image credits © Manoj Patil.

The need of management are given below.↓

1. Optimum utilisation of resources,
2. Expansion and diversification,
3. Reduction of employers absenteeism and turnover,
4. Utilises the benefits of science and technology,
5. Encourages initiative and innovation,
6. Minimises wastages,
7. Team work,
8. Motivation,
9. Reduction in labour turnover,
10. Higher efficiency,
11. Improves the quality of life of the workers,
12. Cordial industrial relations,
13. Corporate image,
14. Promotes national development,
15. It helps society.

Importance of management are discussed below.↓

1. Optimum utilisation of resources

Management brings all the available resources together. All these available resources are important for achieving the objective of the organization which are:

• Men,
• Money,
• Machines,
• Methods,
• Optimum (best)
• Utilization (use)

2. Expansion and diversification

Management helps the organization to achieve its objectives efficiently, systematically, easily and quickly. It helps the organization to face the cut-throat competition to grow, expand and diversify.

3. Reduction of employers absenteeism and turnover

Management motivates people. It provides different incentives to the employees. This includes positive, negative, monetary and non financial incentives. These incentives increase the willingness and efficiency of the employees. This increases the productivity and profitability of the organization.

Management also develops team spirit and increases the efficiency within the organization. It in addition reduces labor turnover and absenteeism.

4. Utilises the benefits of science and technology

Man has made rapid progress within the field of Science and Technology. Management utilizes the benefits of this progress. It provides industries with the latest machines. It provides the consumers with the newest products.

5. Encourages initiative and innovation

Management spurs initiative. This means it initiative the employees to make their own plans and to execute these plans. It inspires the employees to give their suggestions. Initiative gives satisfaction to the laborers and success to the organization.

Management in addition encourages innovation. It brings innovative ideas, modern methods, latest techniques to the organization.

6. Minimises wastages

Management minimizes the wastages of human, waste materials and monetary resources. Work is done through arrangement, proper manufacturing and Control. Managers motivate subordinate to reduce wastages. Reduction in wastage's brings a higher return to firm.

7. Team work

Management always builds a team spirit in the organization. The combine effort of work and unity lead to the prosperity within the organization. Team work plays an important part in the success of organization.

8. Motivation

Management motivates employees by sharing their profits by the mean of bonus. They also give a good amount of incentives to the employees. This motivation zeal the employee to work harder, which results in higher efficiency in production.

9. Reduction in labour turnover

Management helps to reduce labor turnover in the organization. Employee turnover takes place when some employees leave the organization, and others join in their place. Frequent labor turnover increases selection and training cost.

Management creates a sense of responsibility among the employees who brings down labor turnover.

10. Higher efficiency

Management always wants that his employees should produce higher efficiency. Productivity is the relationship between returns and costs. Higher returns at minimum investment then the organization is said to be more proficient.

11. Improves the quality of life of the workers

Management provides bonus and incentive to the employees for their work. It gives a healthy work environment to the workers. It also provides medical and insurance faculties to worker and their families. It provides a financial stability which helps in boosting life of the workers.

12. Cordial industrial relations

Management ensures industrial peace. It gives more importance to the ‘Human Element’ in business. It applies positive motivation. All this improves the relations between the employees and the employers.

13. Corporate image

Efficient and effective management maintains a good image and goodwill of organization. This is because of quality of products and services offered by the organization and also due to the social responsibility of organization towards society.

14. Promotes national development

Management is regarded as a key to the economic development of nation. It puts resources to the optimum use. It leads to capital formation and tech advancement. It generates handsome revenue for government. It increases national income and standard of living of people. Thus, it leads to development across all sectors, and significant growth throughout the nation.

15. It helps society

In management, profit is not only the objective of business. Today, the managers are combining profit objective with social purposes. They are providing society with a regular supply of good quality goods and services at reasonable prices. They are also providing employment opportunities to people. They in addition pay high taxes to the government. These taxes are used for improving nations. Nowadays, managers are using part of their profits to build hospitals, schools, colleges, etc. for civilization. So it is helping humanity in many ways.

Conslusion: The need and importance of Management are universally accepted.

The survival progress and success of an organization greatly depend on its management. There is a wide gap between Europe and Asia. This gap is called the ‘Science and Technology Gap.’ Even so, in reality, it is the ‘Management Gap.’ Japan and Germany were totally destroyed in the second world war but today these countries are highly developed. This is because these countries are well managed.

So, management is required in all aspects of life.