Importance of Management

Published by MBA Skool Team, Published on February 19, 2015

Understanding the importance of management is a must for every individual. Management is one of the most widely used words in the world and hence knowing the importance of management is critical. “Management” is required in the lives of each & every individual. From kids to adults to elders, from students to working professionals to businessmen, from farmers to sportsmen to astronauts; everyone has to ‘manage’ & prioritize their resources, and thus studying importance of management in life is necessary. Management is the ability to use resources to achieve one’s goals.

In business terms, knowing the importance of management is extremely important in achieving the organization goals. Companies need to manage their human resources (employees), finance (money), sales & distribution. A large multinational needs management to manufacture products, manage funds to generate profits, pay salaries to employees by getting the best out of them, ensure good product distribution & effectively market their products.

6 M’s of Management – Management teaches individuals & companies on how to make the most of the below mentioned 6 M’s of management

• Money

• Men

• Market

• Material

• Machines

• Methods

Importance of Management

It can effectively help businesses earn profits which can be understood from the following:

1. Competitive Advantage – Management helps organizations gain competitive advantage in the sector of business

2. Manage Resources- Optimum utilization of resources like money, human capital, infrastructure etc helps in eliminating wastage & increase efficiency

3. Motivating employees- Effective management can help understand the needs of employees and increase their efficiency & loyalty by motivating them by taking care of them

4. Leadership – Leading by example is the best way for companies to show employees how the organization is focused towards achieving its goals

5. New Practices & Innovations- One of the best way to keep ahead of competition is to adopt new practices & change with time & according to business needs

6. Better Functioning- Management teaches how different teams, people & entities can work together & simultaneously, which would result in higher efficiency

7. Time Management- One of the most importance aspects of management is utilizing the time effectively, prioritizing tasks & accomplishing goals in a stipulated time.

8. Expansion of business – Through management one learns how to make the most of resources, plan growth for the future and expand business & even diversify

9. Team Relations- Organizational goals cannot be achieved by individuals, but is always realized by team work of all the employees. Hence, team spirit is one of the most critical facets of management.

10. Improve Lives – If organizations prosper, it leads to better profits, which directly benefits employees as they get monetary benefits which helps improving their lives.

Every day, every minute, everyone works hard to ensure that they can live a life of dreams, drive fancy cars, travel the world, earn well etc. And the best way to realize one’s dreams, people should understand the IMPORTANCE OF MANAGEMENT!

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