Concept of Management – Meaning, Definitions, Nature, Features and Importance

Concept of Management


Management is a universal process in all organized living. In fact, management permeates in all our endeavors where we want to achieve success with the help of men and other resources. Without it nothing concrete could be achieved particularly through group efforts. In the present complex world which is shrouded in competition, specialization, automation, technological advancement, resource shortage, etc. management has become much more significant. Without management, an organization is merely a collection of men, machines, money, and material. In its absence, the resources of production remain resources, and never become production.

The importance of management may be traced in the following contexts:

1. Effective Utilization of Resources

The resources are scarce in nature and to meet the demand of the society their contribution should be maximum. Management of these resources means to make optimum utilization of all the available resources. Management helps in creating and maintaining an environment conductive to highest productivity. Effective use of men, money, materials, machines etc. can help an organization achieve its objectives in time and reduce unnecessary wastage, duplication and misuse of the resources.

2. To Incorporate Innovations

Management encourages innovation in the organization. Innovation means new ideas, new methods, new machines and procedure, new technology, new products, new marketing campaigns etc. Today technology is changing at a very fast pace. These changes need to be incorporated by the organizations to keep up with the competition.  Management helps in identifying, inviting and incorporating useful innovations successfully. This helps organization in adjusting and coping with the changing business environment and keeps organization alert, active and alive.

3. Development of Resources

Management is a continuous process and does not stop anywhere. It believes there is always a scope of improvement and therefore it keeps on developing the available resources. Such resources may include the financial resources, inventory, human skills, production resources, or information technology (IT) and natural resources.

4. Integrating Various Team Groups

Management is to integrate various individuals to work efficiently so that the group can realize its objectives. Management looks for mutual co-operation and co-ordination among all group members. Management is to reconcile the objectives of the group with those of its members so that each one is motivated and starts working towards accomplishing the objectives.

5. Stability in the Society

Management provides stability in the society by changing and modifying the resources in accordance with the changing environment of the society. Management provides integration between traditions and new inventions and safeguards society from the unfavorable impact of these inventions so that continuity in social process is maintained.

6. Development of the Nation

Efficient management is the crucial factor for the economic and social development of the country. Management may increase national wealth by increasing the income and living standards of people. It helps to create good trade relations of the country with other foreign countries thereby contributing to an increase in the foreign exchange reserves. Thus, management is regarded as the key to the economic growth of a country. It also creates social prosperity by making tasks easier, avoiding waste, and following sustainable practices such as use of renewable energy and recycling, and enhancing education of the employees and their social status.

7. Minimization of Cost

In this cut throat competition it is very important to minimize the cost to allure the customer for the sustainable survival. Management plays an important role in reducing costs and improving efficiency and thus enabling the enterprise to be competent to face competitions and earn profits. It uses physical, human and financial resources in such a combination that minimizes the cost.

8. Employment Generation

Management plays an important role in setting up and expanding business enterprises and thereby opening new vistas of employment. Management helps to satisfy the economic and social needs of the employees and thereby creating a happy and prosperous society.

9. Better Industrial Relations

Industrial relations include both internal and external relations. Management helps in establishing and maintaining healthy relations with outside parties like customers, suppliers, financers, government, service providers, media owners etc. In the same way, it helps in maintaining healthy relations with the employees to ensure their active involvement and cooperation. This can contribute to smooth functioning of the organizing.

10. Image, Reputation and Goodwill in Market

Many companies, with Indian and foreign origin, like The Reliance Group, ITC, Life’s Goods (LG) Electronics, The Tata Group, The Birla Group, Hindustan Unilever, Infosys Technologies, Wipro Corporation, Coca-Cola India and Mahindra and Mahindra, to name a few, are reputed companies in the corporate world due to their quality of management. A better management ultimately results in better service by the company and better marketing. This ultimately creates a stronger brand image in the minds of its customers and this ensures a longer lasting brand loyalty from them.




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