Management is the process of dealing with or controlling people of an organization. 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. 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. 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: “a 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. The 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 by fulfilling these the organization grows and becomes more and more sophisticated and larger.
2. Inspires Effective 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 does empowerment and initiative take an organization if we look at Google. There management system, there is very flexible and innovative, yet they have managed their people so well and have gone through so much continuous growth.
3. Optimum use of resources: We are always left 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 days.
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 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 team work. 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 everyone of the organization.