MANAGEMENT AND ITS IMPORTANCE

March 01, 2017

MANAGEMENT AND ITS IMPORTANCE

Management is one of the important aspects in any organization. If the management of the organization is good, there is the chance to grow for the staffs and there will be financial development too. But if the management is bad, there will be failure in the organization as well as there will psychology problem with the working staffs.

So, what is management and it's important?

To go on a deeper level, management can be defined as art and skill of getting things done through others is called management. More elaboration is given by George R Terry. According to Terry-“management is the distinct process consisting of planning, organizing, activating, and controlling activities performed to determine and accomplishes the objectives by the use of people and resources.” If we give our attention towards the definition we find that terry perceives the management as a process a systematic way of doing things. The four management activities are included under the process and they are planning, organizing, activating and controlling.

Basically, there are 5 concepts of management. They are:

1. Functional concept

Management basically is the task of planning, coordinating, motivating and controlling the efforts of other towards the goals and objectives of the organization. According to this concept, management is what a manager does (planning, executing, and controlling)

2. Human relation concept

According to this concept, Management is the art o getting things done through and with people in organized groups. It is the art of creating an environment in which people can perform and individuals could cooperate towards attaining of group goals. It is an art of removing blanks to such performance a way of optimizing efficiency in reaching goals.

3. Leadership and decision making concept

According to this concept, management is the art and science of preparing, organizing, directing human efforts applied to control the forces and utilize the materials of nature for the benefits to man.

4. Productive concept

According to this concept, management may be defined as the art of securing maximum prosperity with a minimum effort so as to secure maximum prosperity and happiness for both employer n employee and provide best services thereby.

5. Integration concept

According to this concept, management is the coordination of human and material resources towards the achievement of organizational objectives as well as the organization of the productive functions essential for achieving stated or accepted economic goal.

These above definition of management, given by different writers and authorities, are found giving different senses. Virtually, the five concepts are found developed by the authorities emphasizing in different aspects. However, it has been realized by many that it will not be fair to define management based upon any one aspect. Management can be taken as process-managerial process or social process either engage in planning, organizing, staffing, directing and controlling or mobilizing the group activities to achieve the corporate goals.

To overcome the limitations of the above concepts, Theo Haimann, the leading management expert has explained three basic concepts of management as under:

a. Management as a process:-

Management is a process. It includes the process of planning, controlling, coordinating, motivating, and staffing. These processes are the series of interrelated sequential functions. Processes refer to accomplish these mentioned activities. Management is the efforts of organizational members to accomplish the organizer’s objectives. This concept is very simple because

i. It is very simple and very easy to understand

ii. It indicates functions of management as a process

iii. It recognizes management as a universal process

b. Management as a discipline

the term management is used as a subject of instructions. It is a specific branch of knowledge which is studied in campuses and schools like economics, sociology, mathematics, political science etc. the scholars of management have found that the information and management are used in practical life for better functioning. The scope of management is being increased day to day as a discipline

c. Management as a noun:

The word management itself refers as a noun. There are many kinds of employees in an organization . some people are involved in managerial function and some are involved in operating functions. The individuals who manage the organization and departments are managers. As a noun, the term management is used as single name of managers, board of directors, managing directors, departmental managers etc are included in management.

Thus, theo haiman the leading management expert expiained the meaning and concept of management.

So, management (or managing) is the administration of an organization, whether it is a business, a not-for-profit organization, or government body. Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees or volunteers to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources. The term "management" may also refer to the people who manage an organization.

Management is an individual or a group of individuals that accept responsibilities to run an organisation. They Plan, Organise, Direct and Control all the essential activities of the organisation. Management does not do the work themselves. They motivate others to do the work and co-ordinate (i.e. bring together) all the work for achieving the objectives of the organisation.

Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources for achieving the objectives of the organisation such as high sales, maximum profits, business expansion, etc.

James A.F. Stoner defines Management which covers all the important facts of management. According to him, "Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals."

The definition suggests:

Management is a continuous process;
Several interrelated activities have to be performed by managers irrespective of their levels to achieve the desired goals;
Managers use the resources of the organization, both physical as well as human, to achieve the goals;
Management aims at achieving the organization's goals by ensuring effective use of resources in the best interests of the society.

According to Harold Koontz, "Management is the art of getting things done through and with people in formally organised groups."

According to Henri Fayol, "To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control."

IMPORTANCE OF MANAGEMENT

· It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals.

· Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources.

· Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction.

· Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone.

· Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.

· Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.