Concept of Management
Management is the process of monitoring and controlling the internal operations of the organisation to achieve the desired goals. It involves planning, organizing, staffing, directing and controlling of organisation activities to accomplish targets. Management is an art of getting done through others within the desired time limit. Management concept is universal in nature means it is required by all organisations irrespective of their nature, size, structure and type. It aims at creating such a business environment where all peoples of the organisation can work together with cooperation efficiently.
Management is termed as the lifeblood and backbone for every business. It ensures fuller utilisation of all resources and guides and monitors the activities of all human resources. Businesses are able to increase their profitability and achieve their desired goals through the application of management techniques. Management process is a continuous process which persists throughout the life of the business organisation. It is a dynamic function which changes with changes in various factors around the business environment like social, legal, technological, political and economic factors. Any changes in these factors bring changes in overall management policies and strategies.
There are three levels of management viz. Top-level management, Middle-level management and Low-level management. Top-level management includes Chief executives and Board of Directors responsible for formulating strategies and policies. Middle-level management includes the department’s heads and managers responsible for implementing these policies in the organisation and acts as a link between top and low-level management. Low-level management includes supervisors and foreman which interacts with employees and monitors their activities. Importance of Management in business organisation can be well-understood from points given below:
Importance of Management
Optimum utilisation of Resources
Management aims at efficient utilisation of all resources in the organisation. It brings all resources together and gives the best results to the organisation. Management uses the skills of professional managers to monitors and controls the activities of human resources working in an organisation. These managers insist on better efficiency and effectiveness of all activities through better planning, organising, staffing, directing and controlling. It avoids any wastage and properly utilises all resources.
Achievement of Desired Goals
Goals and Objectives are the desired outcomes for all business. Every business wants to attain its established within the desired time limit. Management helps in attainment of these goals through designing proper strategies and policies. It properly analyzes the goals and accordingly frames various policies for their achievement. Management successfully implements these policies in business operations and ensure from time to time that their policies are properly followed within a business organisation. Performance of their activities as per strategic plans helps in achieving these goals.
Management has an effective role in reducing the overall operation cost of business. Cost reduction is essential in earning sufficient profits and setting proper price strategy. It aims at eliminating all wastages in organisation and take maximum output by giving minimum input. Through proper planning, it combines physical, human and financial resources in a manner which gives the best combination and output. It minimises the overall cost expenses of organisations.
Creates Healthy Working Environment
Proper working environment is essential to ensure uninterrupted operations within a business organisation. Management helps in bring cooperation and better understanding among employees and employers of the organisation. Employees working in an organisation come from different culture, have different attitudes and styles of workings which lead to chaos and confusion in the organisation. Manager properly monitors and guides each employee which result in bringing harmony and uniformity in the organisation.
Helps in Growth and Expansion
Management supports the business in expanding their operations and size. It aims at increasing the profitability and overall productivity of business organisations. It ensures that all resources are fully utilised and there is no wastage of resources. It frames and implements various strategies as per the technological and various market changes. All this result in the growth and expansion of business size.
Improves Company’s Goodwill
Good corporate image helps business in retaining and attracting more customers. Management sets the standards for products of the company. It ensures that the company produce quality products and offer at a reasonable price to its customers. Quality products at low cost makes the customer happy and improve their satisfaction level. This sets better company image in company eye’s and enhances its goodwill.
Management has an efficient role in the motivation of employees towards their roles. Motivated employees perform well and yield better results. Management aims at fulfilling all financial and non-financial needs of their employees. Employees are also provided timely training and education from time to time to improve their skills. All this results in increasing the willingness of employees thereby improving the productivity of the organisation.