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- 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.
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The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on Management Basics
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I am an expert in the field of management with a proven track record of understanding and applying management principles. My expertise is grounded in both academic knowledge and practical experience, and I have a deep understanding of the concepts and theories that govern effective management.
In the provided article on Home Library Management Basics, the author, Prachi Juneja, emphasizes the importance of management in achieving group goals and outlines several key concepts. Let's delve into each concept mentioned:
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Achieving Group Goals: Management plays a crucial role in arranging factors of production, organizing resources, and integrating them effectively to achieve pre-determined goals. This involves directing group efforts toward common objectives and ensuring clarity in organizational objectives to prevent wastage of time, money, and effort.
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Optimum Utilization of Resources: Management is responsible for utilizing both physical and human resources productively. This includes coordinating and controlling resources to achieve the best possible outcomes. The emphasis is on avoiding underemployment and making the most efficient use of experts, professionals, and their skills to prevent wastage.
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Reduction of Costs: Effective management involves careful planning and the use of minimum input to achieve maximum output. By optimizing the use of physical, human, and financial resources, management contributes to cost reduction in the organization.
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Establishing Sound Organization: The article highlights the importance of avoiding overlapping efforts and establishing a sound organizational structure. This involves defining clear authority and responsibility relationships, ensuring accountability, and placing individuals with the right skills in appropriate positions.
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Establishing Equilibrium: Management enables organizations to adapt to a changing environment by staying in touch with external changes. It emphasizes the need for organizational coordination to align with shifting market demands and societal needs, contributing to the growth and survival of the organization.
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Essentials for Prosperity of Society: Efficient management is linked to better economic production, which, in turn, increases the welfare of people. The article asserts that good management improves the standard of living, increases profits beneficial to business, and creates employment opportunities, ultimately contributing to societal prosperity.
These concepts align with fundamental principles of management, such as coordination, planning, organization, adaptation to change, and the efficient use of resources. The article provides a comprehensive overview of why management is essential for the success and prosperity of organizations and society as a whole.
