 Business Management Ideas

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Importance of
Management for
every Business
Organisation
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Importance of management for every

business organization are: 1.
Management helps in Achieving
Group Goals 2. Management
Increases Efficiency 3. Management
Creates a Dynamic Organisation 4.
Management helps in Achieving
Personal Objectives 5. Management
helps in the Development of the
Society.

In absence of efficient management

the resources will remain resources
and cannot be converted into
finished products.

1. Management helps in Achieving

Group Goals:
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Organisation consists of number of
persons who work as a group.
Management helps in achieving
group goals by giving a common
direction to the individual effort.

For example, an employee’s objective

is to earn maximum wages whereas
the organisational objective is to
maximize output. Employees can
achieve their objectives by
maximizing output which helps in
the achievement of organisational
goal too. This is what management
strives to achieve.

2. Management Increases
Efficiency:

The main aim of every manager in

any organisation is to minimise the
cost and to increase the output
through effective planning,
organising, directing, staffing,
controlling etc. Efficiency increases
when we use fewer resources (i.e.
inputs) and achieve more benefit or
output.

In any organisation, input resources

are men, money, material and
machinery. Management uses these
inputs efficiently by properly
allocating them to reduce the
wastage which ultimately decreases
cost and thus leads to higher profits.

3. Management Creates a Dynamic

Organisation:
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The environment in which an

organisation works is subject to
continuous changes and the people
working in the organisation resist
change because they don’t want to
move from a familiar and secure
environment to a new environment.

An organisation must change itself

and its goal according the needs and
aspirations of the environment.
Management helps to adapt to these
changes in order to be successful. For
example, to survive in the Indian
market, Mc Donald, a leader in fast
foods, has made major changes in its
menu.

4. Management helps in Achieving

Personal Objectives:
Management not only helps in
achieving the organisational
objectives but also the personal
objectives of the employees. With the
help of self motivation and
leadership techniques, management
helps individuals to develop spirit of
cooperation, commitment and team
spirit etc. that help them to achieve
their personal goals as well.

5. Management helps in the

Development of the Society:
An organisation has many
obligations towards different groups
that constitute it. The process of
fulfilling all the objectives must help
in growth and development of the
organisation as well as society.

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For example, providing better quality

goods and services, generating
employment opportunities,
increasing the wealth of the nation,
providing fair wages to the workers
etc. Effective management helps the
organisation in fulfilling all these
obligations.

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