[Commerce Class Notes] on Objectives and Importance of Management Pdf for Exam

Management can be defined as the process of designing and nurturing an environment in an organization in which individuals, usually working in a group/groups, accomplish defined objectives efficiently. The functioning and success of an organization depend upon the existence of good management. The management architects the ways to achieve the goals and ultimate optimization of resources at a minimal cost. The following article aims to describe the importance of management, objectives of management in business studies, the answer of ‘explain the importance of management’, aims and objectives of management, and what is the importance of management, etc. in a vivid manner. 

What is Meant by Management? Explain the Importance of Management.

Management is the total of all the activities that ensure the smooth and efficient running of a business or non-profit organization. The importance of management is that it arranges all the four factors of production, i.e., men, materials, money, and machines, assembles and organizes them, and effectively integrates them to achieve group goals that are usually pre-determined.

Explain the Importance of Management

To explain the importance of management in the present business scenario, the following points have to be taken into account:

• It directs and unifies group efforts towards a common organizational goal.

• The managers foster a good organizational climate by establishing an effective grievance handling system, reward system, and problem-solving system, etc. 

• The ultimate function of the management is to maximize the organization’s profit by reducing the cost of production. This is nothing but productivity enhancement. 

• It faces competition strategically.

• It makes proper use of scientific and technological advancements to devise an appropriate growth strategy for the enterprise. 

• The management creates and maintains a good organizational structure and adapts to exciting new opportunities from time to time. 

•  It acts as a creative force and adds value to every element of organizational functioning.

Therefore, a dynamic, learning-centric organization is only created with the help of efficient management. All the above points summarized the answer to what is the importance of management. 

Management is a wide and endless concept. But, it has some levels which make it even easier to be understood. Below are the different levels of management :

Levels of Management

1. Top Management: It is related to setting basic goals or objectives and Expanding or contracting activities. Top management include Owners, Shareholders, Chief 

executives etc.

2. Upper Middle management: It contributes to activities like 

• Installing different departments

•  Designing operating policies and routines

• Assigning duties to their subordinates

Upper middle management includes Production executives, sales executives, etc.

3. Middle Management: Middle management works on 

• achieving coordination between different parts of the organization

• conducting training for employee development

• building an efficient company team spirit

Middle management includes Branch Managers, Superintendent, etc. 

4. Lower Management: The role of lower management is to supervise workers, impart instruction and develop/improve work methods operations.

Lower management includes Foramen, Supervisors or charge-hands, etc. 

5. Operating Force of Rank and file workmen: Its role is to work independently or under the guidance of a ‘supervisor’. 

The Operating Force consists of Rank and file workmen, Skilled and Semi-skilled workers, etc. 

Along with this, different areas of the management field require differently characterized management. So, management has various characteristics.

Characteristics of Management

1. Setting goals for organizations and firms

2. Management is a transformation process

3. Management is decision making

4. Management is a profession

Objectives of Management in Business Studies

There is a huge importance of management in business studies. Broadly, the objectives of management in business studies can be divided into three categories- organizational, social, and personal.

Organizational Objectives

Social Objectives

• To operate in an environmental-friendly manner

• To produce quality goods at reasonable rates

• To create employment and generate income

Personal Objectives

Overall, management aims to uplift the work quality and utilization of resources and assets in an efficient way to get the maximum output out of it.

Taking a micro view at the objectives of business management, they can be explained as below:

1. Surplus Creation: In the event of production, the management must aim towards surplus creation which then can be used to increase profitability. 

2. Optimum Utilisation of Resources: All the resources of an enterprise- men, machines, materials, and money- must be utilized in an economic way to earn profits that are sufficient to fulfil the interest of stakeholders- proprietor, employees, customers, associates, government and society. 

3. Market Creation: A stable market has to be created by the organization to sell the produced goods or services.

4. Ensuring the Sustainability of the Business: The business model must be devised in such a way that it can sustain itself on its own. It is then up to the management to plan its growth and long-term profitability. 

The other objectives of business management are producing more value for customers by ensuring a regular supply of goods and services, maintaining discipline and morale of the employees, mobilizing the right talent within the organization, improving overall performance, and minimizing all elements of risk. 

Styles of Management

Also, different ‘styles’ of management can also be understood as their types. Management styles are the ways by which a manager works to fulfil the task. Management style can depend on management, industry, country, culture, etc. 

Some of the management styles are: 

• Autocratic management styles follow a one-way approach i.e, ‘from bosses to employees. It has some subtypes named authoritative, persuasive, and paternalistic.

• Persuasive management style – In this, the manager convinces and motivates the team to work on the plan and makes them believe that the plan is worth working on. In this, there is no order given from the manager or workers. This style is good to build and maintaining trust between the company employees. This style requires good communication skills and convincing ability.

• Democratic management styles – In this, the manager motivates and encourages employees or workers to give input during decision-making and planning processes, but the final decision still remains in the hands of the manager. This communication goes both ways, and it increases team comprehensiveness.

• Laissez-faire management styles – In this, the staff is trusted to do their work without any supervision, and the decision-making and problem-solving related to their work are done by themselves. Hence, in this style of management, every employee or worker acts as their own manager and manages their work. 

Skills Required for Management

Management skills refer to those qualities and abilities that a person should acquire while working for an organization of managing a task.

Some of the common management skills include :

1. Planning: Planning is the ability to organize an event within a given limit of time and within a given limit of resources or money. Planning consists of understanding the task and setting achievable goals and that too within the deadline. 

2. Communication: Communication means the exchange of thoughts and ideas. Hence, it is a significant part of management because good communication is beneficial for strategy making and planning the tasks.

3. Decision-making: A good manager should have excellent and bold decision-making skills. It is because management is the core that decides the output or benefit after doing any task. Hence, one should have an intelligent and good decision-making mentality to be a good manager.

4. Problem-solving ability: While managing a task, things don’t work out as planned most of the time. During this course of time, problem-solving skills are a must for being a good manager.

5. Motivation and good leadership quality

Therefore, management skills are a set of abilities that include delegation, smart working, and punctuality. Management skills make a manager stand out professionally.  

Importance of Management in Society

The importance of management in society can be explained by the very fact that society forms the external environment of the enterprise. Therefore, it has certain responsibilities towards it. These are:

• Creating employment and generating income

• Not causing harm to the environment

• Ensuring the upliftment of society by indirectly fostering a learning environment.

• Facilitating infrastructure development 

• Meeting the demands of society by producing value-added products/services

The importance of business management in management studies is immense. It furnishes the students with the knowledge of management science and trains them to take critical responsibilities of running a business when they join an organization.