Why management is important in India?

India is an underdeveloped country, marching ahead on the path of development and self-dependence. The only way out open to India after the independence of over two centuries is the rapid industrialisation of the country.

Rapid industrialisation will only remain an imagination if we do not have efficient managers to manage the industrial organisation.

The process of industrial action implies the use of heavy machines and production at large scale, large distribution at the national and international level.

All these require a lot of plans to be taken by the management.

The importance of management in India may be explained in the following ways:


(i)  Labour Problems 

India is facing labour problems many times more than in other countries. The Indian Labourer is passing through the state of dissatisfaction and the dissatisfaction of labourer becomes more because of the industrial backwardness.

Therefore, proper management of labour problems becomes the necessity for industrial development of the country.

(ii)  Unemployment 

India is having the largest number of unemployed persons in the world. The industrial development of the country is the only solution to the problem and the process of industrial development implies the need for efficient management.

Therefore, the management is of great importance for our country to overcome the problem of unemployment.

(iii)  Low Productivity

After the comparison with other countries, the result shows that the productivity of Indian industries is very low. The basic reason for this low productivity is the mismanagement of the resources of production.

Therefore, the better management of the resources of production is necessary to increase productivity.

(iv)  Low Rate of Capital Formation 

In India, we find only a 13% rate of the capital formation while this rate is a high as 30% in other developed countries of the world.
Because of the low rate of capital formation, the process of industrial development also suffer.

Therefore, it is necessary to increase the rate of capital formation for the overall growth of our country and this requires the better management of capital resources of the country.


(v)  To Exploit The Natural Resources 

India is a rich country inhabited by the poor. India has vast natural resources. Nature gifted all its resources to India but we could not exploit these resources fully.

Management, therefore, becomes of great importance for the exploitation of these resources.

(vi)   Scientific and Technical Development 

The rate of scientific and technical development in India is very slow. We still use outdated technology and because of this reason, business and industry can never be prosperous

Adoption of scientific and technical developments require efficient management.
Thus, it also increases the need for management in India.

(vii)   Centralisation of Wealth 

The distribution of wealth is very imbalanced in India. Most of the wealth is centralised in the few hands.
On the other hand, a large number of business undertakings are facing the problem of survival.

To overcome this problem, it is necessary to re-manage the distribution of wealth.



Conclusion: 

The above discussion makes it clear that the importance of management is increasing in India day-by-day.

India can succeed in implementing its economic plan and can face international competition successfully only if the business and industrial activities are properly managed and administration of India.

Thus, management is very important in India.




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What is the scope of management?

As you know management is a wide process. It has many branches, are as under:

(i) Production management
(ii) Material management
(iii) Purchase management
(iv) Financial management
(v) Personal management
(vi) Marketing management
(vii) Office management


(i)  Production Management 

Production management is concerned with the planning, organising and controlling of all activities related to the manufacture of goods and services.
It deals with the coordination of production operations of an enterprise.
It is concerned with decision making relating to processes for producing goods and services.

Main problems in production management 

Plant location and layout, production policy, plant facilities, purchasing and inventory control, production planning and control, quality and cost control, repairs and maintenance, research and development, etc...

(ii)  Materials Management 

It deals with the determination of policy with regard to procurement and disbursement of materials (quality, quantity, price etc.) among the needy jobs without any delays.

It is concerned with the control of materials in such a manner, which ensures the maximum return on working capital.

It includes scientific purchasing, storage and handling of materials with a minimum of misuse and wastage. 


(iii)  Purchase Management 

Purchase manager is concerned with the procurement of proper equipment, materials and supplies of the right quantities, at the right prices and at the right time.

The purchasing department has a link with the production department, to keep in touch with all the requirements of the production department.


(iv)   Financial Management 

Finance manager is important for procurement and effective utilisation of funds required in business.
It is concerned with identifying, obtaining and utilisation of long term funds.

Issues in financial management 

Capitalisation, capital structure, fixed capital, working capital, accounting procedures, capital budgeting, dividend policy, reinvestment of earnings, etc...

(v)   Personnel Management 

Personnel management deals with people at work. It consists of managing human resources.
It is concerned with the procurement, development, compensation, integration and maintenance of employees.

Importance areas of personnel management

Wage and salary administration, performance appraisal, promotion policy, employee welfare services and benefits, labour absenteeism and turnover, industrial relations, personal records and research.

(vi)   Marketing Management 

Marketing bridges the gap between consumer and producer. Marketing is a process which carries goods from producer to ultimate consumer.

Important decisions in marketing management 

Regarding product design, package, brand name, pricing, channels of distribution, advertising, salesmanship, sales promoting, after-sale service marketing research, etc...

(vii)   Office Management 

The office work is the main function of management that it helps the management in attaining its goals.
It works as a service department for another department.

It is the art of guiding the personal of the office in the use of materials, methods, machines, and equipment appropriate to their environment in order to achieve its specified purpose.

Thus, this is the scope of management.



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Want to know about the nature of management?

Here you can get the knowledge about the management's nature.
Management is a wide process. For deep understanding, you should read about the nature of management.
Those are like:-

(i)  Dynamic Function 

Management is a dynamic function of the business organisation. It's function change from time to time. Functions depending upon the various circumstances of the business, i.e., changes in economic, social, political, technological and human conditions.
With the help of a suitable forecast and changing in the policies management adjust itself.

(ii)  Universal Process 

Management is a universal process by its principles and techniques. They can be applied to all types of organisations-business, social, educational and religious.

Must take care while principles and techniques are going to apply. They should be modified to suit the given situation and type of organisation.

(iii)  Social Process 

Management is a social process. It deals with emotional and sensitive human beings. The major achievement is to win their confidence and cooperation.
Management principles are constantly influenced by social traditions, customs and regulations.

(iv)  Management is a process 

Management is a process which is formed of certain activities like planning, organising, staffing, directing and controlling.

The managers have performed these functions at all level in the organisation. These functions require specialised knowledge and skills in their application.

(v)  An Integrative Process 

The nature of management is the integration of human and physical resources in a manner that leads to effective performance.
Managers apply knowledge, experience and principles for getting the results.

(vi)  Management is a Science and an Art 

The manager can manage the situation or organisation in a systematic and scientific manner on the basis of knowledge of management and its principles.
Since the skills acquired by a manager are his personal possession, management is viewed as an art.

(vii)  Production Factor 

Management is the most important factor in production. Managers motivate labour and employees for better production. Educated and qualified managers are the potentials of the organisation.

(viii)  Goal Oriented 

Management provides the goals to the organisation for achieving the aim of the organisation. Goal establishment avoids any random behaviour on the part of organisations.

(ix)  Group Activity 

Management is a group activity, through this, teams work together in the project. For the purpose of achieving the objectives, employees work on the goals of the organisation.
Managers help their subordinates in this process.

(x)  Management Makes Things Happen 

As we know, management is the art of getting things done through people.
The nature of management shows that the managerial ability is clearly different from technical ability.




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What are the importance of management?

As remarked by Peter F. Drucker,  "Management is the dynamic, life-giving in every business. Without it, the resources of production remain resources and never become production." Raw materials, machines, human resources and other factors in the organisation are efficiently managed by the management.

The importance of management are followed:-

(1) Determination of organisational objectives

The objectives are made by the management. And they are put into writing and communicated to all others in the organisation. Without objectives, organisations are aimless.

(2) The accomplishment of objectives 

Firstly, management made the objectives and now it's work to complete the objectives. For accomplished, the objectives management use the material resources by the group of people.


(3) Management helps in achieving personal objectives 

Management focuses not only organisational objectives rather individual objectives also.
Employees want to earn more and organisational wants more production. Employees can earn more by producing more.

(4) Encourages teamwork

Managers encourage the employees for achieving their individual and organisational goals. Encourage group people so that they can fulfil their goals.
Managers put them into unity it will increase the organisational success.

(5) Human development

Management is not simply the direction of things but the development of men. It improves the personality of people to raise their efficiency and productivity. A good manager serves as a friend and guide to his subordinates.

(6) The smooth running of the business

Management helps for the smooth running of the business, through better planning, sound organisation and effective control of the various factors of production.

(7) Motivate employees

Managers motivate the employees for doing better work in an efficient manner. Management provides financial or non-financial incentives. It helps in improving the efficiency and profitability of the organisation.

(8)  Improves organisational relations

Management improves the relations between employees, departments and between levels of management.
Betters relation leads to good teamwork and good teamwork lead to the success of the organisation.

(9)  Efficient use of resources

Managers can help in efficient use of various resources and increase the productivity of the enterprise. Thus, expert managers can lead the business towards growth and prosperity.

(10) Higher profits 

Management can help to a higher profit of the organisation. Managers motivate the employees so they can better work in an efficient way and increase the productivity and profitability of the organisation.

(11)  Stability 

Management coordinates the activities of different departments in an organisation and maintains team amongst the personnel. Management directs and controls the organisation to keep it on right track.

(12)  Improves corporate image 

Good management helps to produce good products and better services in the organisation. This will improve the goodwill and corporate image of the organisation.


So, these are the importance of management.



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What are the objectives of management?

The objectives of management are the most important for the business.  Management plays the main role in all of the business.
There are a lot of objectives in management. Here are some important:-

•  Future planning 
•  Growth of business
•  Proper use of resources
•  The superior quality of good
•  Demand and supply of goods
•  Discipline
•  Improvement in performance
•  Compensation plan
•  Minimise the risk 

So the explanation of objectives are like:-


(i) Future planning 

Management is a single department who make the plan for the organisation. Future planning is the major objectives of management. Future performance depends on present planning. It's helpful to reduce time-consuming and make a plan for further.

(i) The growth of the business

Management's main objective is to full fill the growth of the business. After making the best plan for the future it will definitely increase the growth of the business. It provides security to the employees and employers. Planning, organising, and directing leads to the growth of the business.

(iii) Proper use of resources

The proper use of men, material, machines, and money help to increase the profit and development of the business. This is the most important objective of management to use various resources.

(iv) The superior quality of goods

The purpose of the management is to produce the best quality products at minimum cost. It helps to increase production and reduce the risks in business.

(v) Demand and supply of goods

The demand and supply of goods are increase and decrease time to time but the management provides good products to the customers.
It checks the demand in the market.

(vi) Discipline 

The most important objectives and aim of the management are to be disciplined. Discipline in the organisation's employees and employers are the first step to growing the business. Management motivates the employees by giving incentives.  And creating a better work culture in the organisation.

(vii) Improvement in performance

Management improves the performance of employees by giving them performance appraisal and feedback.
It helps to improve each and every factor of production and motivate the workers to give their best performance.

(viii)  Compensation planning

Compensation planning is the main objective of management. It helps to motivate the employees so that they will perform very well in future. Compensate the employees on the basis of their performance.

(ix)  Minimise the risk

After achieving all of the objectives, it shows the minimisation of the risk in the business. By proper future planning, give the best quality products, good compensation and discipline are the factors which show the minimum risk handled by the management.

These are the objectives of management that are really really important in any business.



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