NATURE AND SIGNIFICANCE OF MANAGEMENT — OCM STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceOCMNATURE AND SIGNIFICANCE OF MANAGEMENT3 Marks
Question
Discuss the importance of management.
✓
Answer
It is made clear by the following points.
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 functions like planning, organisation, direction and control are required in all these activities.
Optimum Utilization of resources :
Management makes it possible to take the optimum utilization of business resources like land, capital, raw material, personnel and machinery.
It avoids wastage of resources.
Accomplishment of Objectives :
Management makes it possible to take optimum utilization of resources which helps to achieve business objectives.
Useful for the success of business :
If a small scale industry can convert itself as a larg scale industry, then its entire credits goes to management.
Efficient management help to convert a loss making unit into a profit making unit.
Success of failure of business depends on management.
Increase in Job Opportunities :
If management is efficient one, it will develop the form of the company and increase job opportunities, while inefficient management.
Efficient management is responsible for closure of many companies which leads to further increase in unemployment.
Increase in profit :
Competent and proficient manner through their insight and proficiency profit.
Profit is the barometer for the efficiency and success of the business.
Social benefit :
Success of any business increases the wealth and welfare of the society.
Business units produce many goods and services at low cost, providing goods at reasonable rate, result into welfare of entire society.
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.
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