NATURE AND SIGNIFICANCE OF MANAGEMENT — OCM STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceOCMNATURE AND SIGNIFICANCE OF MANAGEMENT5 Marks
Question
Explain importance of management.
✓
Answer
$(1)$ Introduction: Success or failure of any business activity depends on its management. If management has drawbacks, despite availability of modern sufficient resource, its maximum utilization is not possible. A business unit gets failure if there are drawback in machinery layout and even efficient staff is available but it is not properly managed. Dr. G.R. Terry has stated “if you do not have able management, then the society can not sustain for a longer period”.
$(2)$ The Importance of Management: It is made clear by the following points.
$(1)$ Necessary in Every Field: Management is required not only in business activity but also in all the type of activities like religious, defense, social, politics, education, sports etc. Management function like planning, organization, direction and control are required in all these activities.
$(2)$ Optimum Utilization of Resources: Management makes it possible to take the optimum utilization of business recourse like land, capital, raw material, personnel and machinery. It avoids wastage of resources.
$(3)$ Accomplishment of Objectives: management makes it possible to take optimum utilization of resource which helps to achieve business objectives.
$(4)$ Useful for the Success of Business : If a small scale industry can convert itself as a large scale industry, then its entire credit goes to management. Efficient management helps to convert a loss making unit into a profit making unit. Success or failure of a business depends on management.
$(5)$ Increase in Job Opportunities : If management is efficient one, it will develop the form of the company and increase job opportunities, while inefficient management is responsible for closure of many companies which leads to further increase in unemployment.
$(6)$ Increase in profit : Competent and proficient manner through their insight and proficiency make the maximum utilization of available resources economically and can earn the maximum profit. Profit is the barometer for the efficiency and success of the business.
$(7)$ Social Benefit : Success of any business increases the wealth and welfare of the society. Business units produce many goods and services at low costs, providing goods at reasonable rate, results into welfare of entire society.
$(8)$ National objective: Economic, social and National development depends on able management. Use of unutilized resources is a must for the development on nation which is possible only through able management.
$(3)$ Conclusion: At present times the importance of management is decided on the basis of product differentiation, product quality and technology used. Efficient management in the western countries is due to this factors.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.