Critical Ingredient in the Management

 

Critical ingredient in the management is important because of the following reasons:

➤  Efficiency and effectiveness of human efforts : Management tries to combine the resources of an organisation in the most productive so as to maximise the benefits and minimise the wastage. This leads to efficiency. Management insists on using innovative ideas to bring out quality and effective products. It creates balance between effectiveness and efficiency of human efforts.

 

➤ Harmony in work: Employees who come from different backgrounds have different qualifications and different  styles of working. If everyone is allowed to follow their own style of working, it can lead to chaos and confusion in the organisation. Management brings uniformity in their efforts leading to systematic working with good results.

➤ Nation’s growth: Economic growth of a country depends on how efficiently resources are being utilised. Efficient management makes optimum utilisation of resources. It brings effectiveness and efficiency in business organisations. As a result the output of the organisations increases which leads to increase in Gross Domestic product and ultimately to nation’s growth. Thus, management plays an important role in nation’s growth.

➤ Right decisions: Management helps in taking right decisions in selection, utilisation and allocation of resources in different activities. Sound and efficient management helps the organisation to take right decisions at the right time and maintain equilibrium and balance of working.

➤ Achieving the group goal: Management tries to integrate the individual goals of all the employees with the goal of the organisation. Management has to see that the organisational goal and the individual goals of the employees are not in contrast but are in the same direction. For example. The employee's goal of earning more and the organisation’ goal of maximum production can be integrated by asking employees to produce more units.

➤ Effective leadership and motivation: The effective and dynamic management is the source of stimulus to the employees. They are motivated to contribute their best efforts in their jobs.
Clear authority and responsibility Management. Being a group effort. Clear assigns duties, establishes authority an fixes responsibility of every employee in the organisation. It eliminates overlapping confusion and duplication of efforts an thus results in economy.

➤ Solution of labour problems: These day employees have become conscious of the rights and their precious contribution to the organisation in the achievement of its goal .The demand more wages, bonus, improved working conditions, participation in management avoids confrontation between employees and management and finds amicable settlement through conciliation with the trade unions.

➤ Reducing labour turnover and absenteed aim: Many a time employees leave the jobs for higher salaried jobs in other organisation. This turnover is a common feature. Similarly,employees remain absenteed from their jobs for ordinary reasons. A efficient management creates a sense of responsibility among the employees and a sense of belonging to bring down labour turnover and absenteeism.

➤ Fulfilling social responsibility: Modern management understands its social responsibility and its commitment to workers, government, shareholders investors, government and the public.The management satisfies all these interest groups. It makes the commodities available to consumer at fair price, pays fair wages to workers and dividend to shareholders at reasonable rates and pays taxes regularly. It also participates in social welfare programmes.