IMPORTANCE OF MANAGEMENT

Before we can understand why management is important to organization, we first need to understand what an organization is and why it exists? Look around you. What are the things you see, use, eat, wear? Who produces them or provides services for them?

Organization can be defined as a group of people working together to achieve organizational goals. Organization can be profit-oriented or non-profit oriented. Samsung, Apple, PETRONAS, Shell, Secret Recipe, McDonald’s are some examples of organizations that exists for the purpose of generation profit from products and services. A non-profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Examples of non-profit organizations are public schools, hospitals, churches, etc. No matter what kind of organization it is, it is made up of people and the efforts of these people must be coordinated properly if the organization is to accomplish its goal.

Management is important to organization because the existence and success of any organization depends on the kind of management it has.  Management is important for the achievement of organizational goals, the efficient utilization of resources, for the prosperity of society, for changes and development, and for the establishment of balance.