1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
