From time immemorial, management has been an integral part in whatever activities that mankind pursues in life. The term “management” derives from the Latin word “manu agree” which means to lead by hand. With sound and effective management, no doubt, organizations can guide employees to productive work. With effective management, managers and supervisors can direct, organize and influence workers to ensure productivity, coordination and profit.
It is the act of getting people together to achieve its desired objectives and goals using its manpower and resources efficiently. Its function comprises of planning, staffing, organizing, directing and controlling one or more employees to accomplish its goals.
It is an important tool in almost all areas in society because with it, you can ensure the smooth operation of whatever undertaking we want to pursue, like associations, financial institutions, schools and companies.
It is considered the backbone of an organization or a company, which guides, controls and supervises all areas of a business enterprise, starting from human resources to production. Lack of efficient and effective management often results to business losses, labor turnover, decline of sales and business closure.
Because of its importance to the total welfare and operation of companies, stakeholders and business owners hire credible, qualified and efficient managers and supervisors to manage the firm. Business enterprises also provides its employees and executives ongoing training to further its skills and to keep them abreast with the latest technology and techniques in the market.
Significance of Management to companies:
* Reduction of cost – with effective management, firms can reduce and can ensure the proper utilization of resources, thereby reducing waste and prevents exploitation of resources. Business enterprises can also identify what resources, raw materials and suppliers are scare and find alternatives to solve the problem. It also implements specialization of jobs to achieve quality output and increased productivity.
* Equilibrium – It enables organizations to be at pace with changing and advancing technology and environment, letting them adjust to the changing needs and demand of societies. It is responsible for the survival and growth of firms.
* Achievement of goals – The management team execute, plan and balance manpower and resources to achieve maximum work output, to obtain targets and to prevent delays, losses and low quality of products and services.
* Utilization of resources – It plans the maximum and efficient utilization of resources, manpower, skills and knowledge to avoid wastage and to ensure maximum utilization of physical and human resources.
* Sound organization – effective and sound management structure prevents overlapping of jobs, establishes effective responsibility and authority between employees and supervisors. It also gives clear jobs description for employees and provides the needed on-the job training to further the skills of both executives and employees alike.
* Prosperity of society – It leads to improvement of the people’s standard of living, business profitability, economic improvement and creation of job opportunities. It also generates income for the government.
* Increases stability – It helps companies survive market conditions, stays competitive amidst myriads of rivals in the market and enables workers to work with peace of mind.