Importance of Management

Fredrick Winslow Taylor ( March 20, 1856 – March 21, 1915) commonly known as ’Father of Scientific Management’ started his career as an operator and rose to the position of chief engineer. He conducted various experiments during this process which forms the basis of scientific management. It implies application of scientific principles for studying identifying…

Techniques of Scientific Management

Time Study It is a technique which enables the manager to ascertain standard time taken for performing a specified job. Every job or every part of it is studied in detail. This technique is based on the study of an average worker having reasonable skill and ability. Average worker is selected and assigned the job…

Study of Fayol and Taylor

Both the persons have contributed to development of science of management. The contribution of these two pioneers in the field of science of management has been reviewed as “The work of Taylor Fayol was, of course, especially complementary. They both realized that problem of personnel its management at all levels is the key to individual…

Categories

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.

Article Written by

Himanshu Juneja

Himanshu Juneja, the founder of Management Study Guide (MSG), is a commerce graduate from Delhi University and an MBA holder from the esteemed Institute of Management Technology (IMT). He has always been someone deeply rooted in academic excellence and driven by a relentless desire to create value. Recently, he was honored with the “Most Aspiring Entrepreneur and Management Coach of 2025 (Blindwink Awards 2025)” award, a testament to his hard work, vision, and the value MSG continues to deliver to the global community.