Management has an important role to play in an organization, and it plays an important role in the success of the organization. In this article, you will learn how and why management is important for an organization.
Importance of Management
#1. Achieving organizational goals
Achieving organizational goals is the most important role played by the management of an organization. In a large as well as a small organization, several employees are working, and each has a different role to play.
If there is no one there to supervise them or to synchronize their actions or to plan their activities, then there will be loss of human resources and other physical resources available in the organization.
In addition to this, each employee will work on a separate goal which will make them difficult to achieve the organizational goal.
Therefore, management plays an important role in achieving the organizational goal by analyzing the goal, diving the goal into small goals, planning, and assigning tasks to each employee, and supervise them, help them whenever they need and encourage them to achieve the goal.
Good management can make employees achieve that even they feel impossible and keeping the organization ahead of its competitors.
#2. Simplified organizational structure
No matter how much people are responsible and take the responsibility of their jobs, still they need somebody to control their actions and to direct their actions towards a pre-decided goal.
Having a management team in the organization creates a simplified work structure in the organization where workflow from the upper level to the lower level.
People in the management takes projects and assign work to people working at lower levels. In the absence of management, the division of work becomes difficult and cause troubles in the workplace.
In small organizations, things can be handled without management as people who own the business perform most of the work on their own, but in large organizations where thousands of employees work together the role of management becomes crucial, and things become difficult in the absence of management.
#3. Management improves efficiency
Another importance of the organization in an organization is that it enhances the efficiency of the organization. The main job of a manager is to make the maximum use of the skills of his subordinates and the resources allotted to him.
He plans and organizes and gives direction to get maximum output with the lowest cost possible. Important resources of an organization are money, human, machinery, and material. A manager makes sure that all these resources are being used properly.
#4. The simplified and easy decision-making process
Decision-making is an important part of every organization. It is the role of a manager to decide on the organization. In the absence of management, the decision-making process becomes difficult.
However, people in management are usually expert in their respective fields and have experience. Therefore, they make better decisions and give orders to their subordinates to achieve the goal of the organization.
#5. Encourage staff participation
Another importance of management is that it doesn’t impose orders on the staff members. But good management will encourage the employees to participate in the decision-making process and provide their views.
In this way, they make the most use of knowledge and skills of employees in the organization. Employees feel connected, and their loyalty increases when they are given importance and are encouraged to take part in the decision-making process of the organization.
Loyal employees are good for the organization as when they feel connected to the organization they put their 100% efforts to achieve the results.
#6. Establish coordination among different departments as well as people
in large organizations, different activities of the organizations are handled by different departments such as all activities related to production is taken care by the production department, there is human resource department which takes care of the recruitment, and the management of employees and account department is responsible for allotting budget and maintaining the expenses.
Similarly, there are other departments such as marketing department sales department, research, and development department, etc. all of these departments have different work to take care of. The role of management to establish coordination and synchronization between these departments.
So that they all work towards the common goal of the organization.
#7. Makes easy to adapt to a changing business environment
The business environment is dynamic in nature, and especially in the 21st century, it changes very rapidly. Employees perform their duties and finish the tasks at their hands. But management is responsible for looking ahead of the times.
They keep a close look at the changing business environment and take decisions and planned to meet future requirements efficiently. With there foresightedness and planning, it becomes easy for the organization to adapt to the change in the business and stay ahead in the competition.
#8. Impose rules of regulation of society
It is not a secret that each organization works towards making profits and sometimes in the pursuit of making profits, they end up violating the rules and regulation of the society.
In such scenarios, the importance of management becomes crucial as they set rules which are in accord and favor of the society and environment. For example, they keep a check on the price of the product, or they make sure that no harm is done to the environment.
#9. Creates a healthy work environment
Management is important to create a healthy work environment in the organization. The efficiency of employees increases when they are provided with a positive and stress-free environment.
Employees can seek the help of management whenever they face any type of issue and management is responsible for providing them solutions, so they can focus on their work without any interruption.
#10. Improves the image of an organization
Management plays an important role in building the image of the organization. The image of an organization gets affected largely on the decision taken by the management. They guide employees to take certain actions which are in favor of the organization.
A positive image of the organization not only bring more customers, but it also attracts investors and business partners.
#11. Provide vision to the organization
The management of an organization consists of managers of various skills and expertise. They have experience in different fields and use their knowledge to make a decision about the organization.
They provide vision to the organization and decide the future goals for the organization and in this way, make an investment in a particular direction so that the vision can be realized.
#12. Competitive strength
Another importance of management is that it provides a competitive strength to the organization. Members of the organization are well-aware of the competition in the market, and they know the moves of the competitors.
With there vision, the organization always work toward improving its work techniques and methods so that it can stay ahead in the competition and can utilize the resources available for creating maximum profit.
#13. Provide moral support to employees
Management plays the role of parents and a teacher for employees in an organization. Employees can turn toward their manager when they come across something that they can’t handle themselves.
In addition to this, managers provide moral support to employees to face challenges.
#14. Helpful in the easy expansion of business
In addition to managing the staff, assigning work, and distribution of resources, management works towards the expansion of the organization. They keep looking for business opportunities and expand their business whenever they come across a good business opportunity.
In this way, they help in expanding the business with the least investment.
#15. Brings stability and prosperity in the organization
Management brings stability in the organization as it is responsible for taking all important decisions and settling disputes of employees and providing them all the resources that they require to complete their jobs.
If employees of an organization are happy and satisfied, they will work hard and bring prosperity for the organization.
An organization can only prosper if it takes care of the employees who work for it, and the management is responsible for forwarding the demands and needs of employees and making sure that these are fulfilled.
#16. Team Spirit
People can get better results when they work in a team rather than working individually. A good manager boosts the morale of the team and improves the team spirit among the members of his team. High spirited teamwork better and generate maximum profits for the organization.
#17. Encourages innovation
The role of management is to inspire employees to use their creative side without any hesitation. Creativity results in innovation and innovation make an organization pioneer in a new field. Innovation can only bloom under good management.
#18. Reduces absenteeism and labor turnover
One major problem of most organization is the increase of absenteeism of employees from work and labor turnover number. People leave their jobs or stay away from work when they don’t like the environment of the workplace or rules and regulation imposed on them or people they are working with/for.
These problems will not be there if the management of the organization is good and take care of the people that are working in their organization. High turnover and high absenteeism mean high recruitment expenses and low revenue.
Therefore, the importance of management increases to avoid these issues.
#19. Improves industrial relationships
People who work at management level have a good relationship in the industry as these people usually have long experience of working in the same industry. A good manager will not only take care of the organization from within but also from the outside it establishes the relationship with the other organizations in the industry and lead to business deals which are profitable for the organization.
Improved industrial image of the organization means more opportunities for business, and more business opportunities result in the expansion of the business.
#20. Take care of employees’ welfare.”
Even though the main job of a manager is to maximize the profits of an organization, but it is equally responsible for the welfare of the employees working in the organization.
They make sure that all the employees are getting rewarded for their efforts, and they have been provided with all necessary facilities like medical insurance, annual vacation, and fair chances to grow.
If employees are taken care, then they can concentrate on their work without any distractions, which will result in improved productivity of employees.
#21. Strong customer relationship
A good and skilled manager not only establish a relationship with his employees but also build a good relationship with the customers of the organization. Customers become loyal and regular if they are treated good and been taken care of their needs.
A happy customer means more business. Therefore, the manager of an organization gives proper attention to the customers and keep them updated with all the offers.
#22. Builds trust of shareholders
Shareholders are the kind of owner of the business. A person has ownership in a company even if he holds 1% shares of the company. Good management wins the trust of the shareholders of the company.
#23. Make the effective use of seven Ms
The seven Ms of business are money, material, machinery, manpower, methods, market, and management. A good manager takes care of all of these seven Ms and makes effective use of them.
#24. Address business problems
A business come across several business problems every day. A good manager addresses these problems and provides effective solutions without delay. In this way, they win the trust of customers and employees.
#25. Helps in achieving personal goals
A good manager will not only think about the prosperity of the organization he works for but also think about the employees who work for the organization. He will guide them so that they not only bring success for the organization but will also succeed in their respective careers.
He learns about the personal goals of the employees and presents them opportunities accordingly so that their skills and talents can be utilized properly.