The nature of business is growth. If the business is not growing, then it’s dying. The survival of an organization depends on its management. Management plays such an important role in any company. Good management will keep employees around longer and help the firm grow from within.
In this article, we’ll discuss why management is important. We’ll also discuss why it is the most significant factor in businesses’ growth. Time and time again, we see companies with a lot of potential fail, mainly due to poor management. If the managing team cannot harness the power of their employees, the company will never succeed.
Definition of Management and Its Importance
Theoretically, management involves identifying the mission, goal, procedures, and rules. This is to contribute to the success of the enterprise.
People in History and Their Definition of Management
Mary Parker Follett, an American social worker, management consultant, philosopher, and pioneer in the fields of organizational theory and organizational behavior. She defines management as “the art of getting things done through people”.
Harold Koontz, an American organizational theorist, says, “Management is a craft of completing things through and with the general population in formally sorted out gatherings. It is a craft of making a situation in which individuals can perform and people can co-work towards the achievement of gathering objectives”.
F.W. Taylor, one of the first management consultants says, “Management is a craft of realizing what to do when to do it and see that it is done in the best and least expensive way”.
To sum it all up, here are the most simple definitions of management:
- Management refers to a group of people who make decisions in an organization.
- Management is the process of planning, organizing, staffing, directing, and controlling various activities.
- Management is the art of getting the work done by others in an effective & efficient manner to achieve the desired objectives.
- Management refers to the act of collaborating with others. Successfully accomplishing organizational goals while making the most of the limited resources available.
8 Reasons Why Management is Important?
Management is important both in business and personal dealings. Here are some importance of management:
1. Setting goals and achieving them
Every business and organization has a mission or set of goals they need to achieve. Management helps companies to reach their goals faster. Management involves effectively organizing resources to achieve goals.
2. Using and managing resources effectively
One of management’s functions is planning, which includes planning where and how to utilize the resources. If there is proper utilization of resources in the company, this will help cut off unnecessary wastage.
3. Reduces Costs
Management reduces costs and maximizes productivity. This is also achieved by one of the functions of management which is planning. Through proper planning, you can get maximum results through minimum input.
4. Develop Analytical and Conceptual Ability of Managers
Management can develop and improve different skills of a manager. Management helps to analyze problems and arrive at solutions geared toward common goals. This helps to technically improve coordination as a team.
5. Individual and Organizational Growth and Development
Management helps in the growth and development not just in the organization overall but also individually. A company will continue to grow if goals are consistently achieved. It allows Employees to grow. It also allows employees to reach their full potential and achieve their personal and professional goals.
6. Excellent Administration and Leadership
Without management, administration can be very challenging. If there is proper management. There will be a clear leadership structure in the organization. Everyone is clear with their roles and responsibility, and there will be synergy within the organization.
7. Flexibility and Ability to Adapt
Management enables the organization to survive in a changing environment. If a company is managed properly, it will adapt to changing environmental conditions and satisfy market demands.
8. Creates Prosperity
This encompasses economic and social prosperity. Management leads to better economic prosperity through production. It fosters societal prosperity by simplifying duties and preventing waste using sustainable methods. Tasks such as the use of renewable energy and recycling and enhancing the education of the employees and their social status.
Four Functions of Management
Levels of Management
Senior management or Top Management
The board of directors, the president, the vice president, the CEOs, and other C-level executives make up this group. The C-suite is made up of a variety of people from different businesses, such as a CFO, CTO, COO, and so forth.
Middle management is overseen by senior management. It includes those working in the roles of a department manager, regional manager, and branch manager. They are the ones who will communicate the strategic goals to low-level management.
Low-level management or Line Management
Low-level management includes roles like front-line team leaders, foremen, section leads, and supervisors. They focus on controlling and directing regular employees. They are responsible for assigning employees tasks and guiding and supervising employees on a daily basis.
Three Different Management Styles
Democratic management style
In this style of management, the team is directly involved in decision-making. Communication allows managers to understand the skills and strengths of each employee.
Persuasive management style
A leader with this management style spends a lot of time with their team members. He is engaged with the team, which results in compliance from the team by persuading rather than instructing or demanding. Although some employees may see through it, a good persuasive manager can be highly productive.
A manager who operates under a laissez-faire style will function more like a mentor than a manager. They empower their employees to step up and make decisions. This is a unique style of management that is difficult for a lot of managers to master, but the returns can be great if done well.
What is the role of a manager in an organization?
The role of a manager in an organization is to facilitate the growth, preservation, and distribution of resources.
He/she is in charge of identifying possible alternative approaches and formulating plans to address them. Leading the team through the project’s execution, providing them with the resources they need to succeed. Assessing the results and making any necessary adjustments are also vital roles.
Here are the other roles of a manager in an organization:
- Teaches employees skills to help them complete projects
- Hires employees
- Conducts performance reviews
- Tracks result and manage a department’s budget
- Makes decisions for problems
- Find ways to increase the productivity of the team
What makes a good manager?
Management is very important in different organizations. Good management is about accountability and responsibility to your stakeholders and employees. This eventually moves the organization to a greater height.
A good manager must earn the respect of their employees by being a good communicator, teacher, and delegator.
When there is good management, you are more likely to fulfill the above, accompanied by good leadership.
A good manager has these management skills:
A good manager knows when and how to communicate with his team effectively so he can evaluate the progress and help them achieve their goals. Communication isn’t only important as a manager. It requires efforts from both parties to work effectively.
A good manager should set an example for the team to follow. He is positive and enthusiastic during his interactions with the team, so they are comfortable communicating with him.
3. Knows how to train
A good manager knows how to assess the skills of his team. He can also see the areas that need improvement and provide the necessary training and coaching needed.
A good manager knows how to delegate tasks and work with the team’s common goals and objectives. The collaboration will allow a manager to see if there’s anything the team needs help with.
5. Servant Leader
A good manager is also a servant leader. A servant leader is someone who knows how to value, serve, listen, trust and care for his people.
A company won’t survive without good management. Management is important in a business because without management. A business will just be like a ship without a sail that can easily be lost at sea. The business will just operate without direction and destination.
I hope this article gave you some insight into why management is important. And also helped you understand the nitty-gritty of the profession.