Significance/ Importance of Management are very essential for successful running of an enterprise. It ensures proper use of physical and human resources by deriving the best results. It leads to efficient performance and higher productivity. Arising out of these benefits, the importance of management may be outlined as follows:
(1) Helps in achieving group goals: Management assembles and organizes available resources for the accomplishment of the goals of an enterprise. It adds effectiveness to the efforts of a group of persons organized to achieve given objectives.
(2) Optimum utilization of resources: Management utilizes available physical and human resources productively. It eliminates all types of wastage and leads to efficiency In all business operations. Thus, it results in effective running of business activities.
(3) Reduces costs: to secure efficiency of operations, management is concerned with reducing costs of production and increasing the output. Through better planning, organizing and control, and the use of various cost reduction techniques, efficient management leads to reduced costs and increased output.
(4) Establishes a sound organization: Management lays down a pattern of authority- responsibility relationship. The structure so formed shows the various inter- related positions for which the right type of persons with right qualifications and training are selected.
(5) Maintains equilibrium: Management helps an organization to survive in its dynamic environment. Good management enables an enterprise to adjust to the complex and ever- changing external environment. Thus, management is responsible for survival and stable growth of an organization.
(6) Essential for prosperity of the society: Efficiency of management leads to greater and more economical production for the society. Through increased welfare activities, it improves the standard of living of the people. Moreover, through its creative activities like designing new predict and adopting new technology, management provides maximum satisfaction of consumer needs in society.