Name: Maira Kausar

Roll no: F17-1103

Subject: Principles of Management

Programme: B.S Psychology

Submitted to: Mr. Khalil Awan

Importance of management in our daily life:

Achieving Company Targets:

When a company begins its operations, specific goals are setup which can only be achieved
if all the parts of the organization function together and efficiently. Proper management
makes sure that each part of the company works towards achieving a common goal without
disarray. Management actually plans, executes and balances the resources of a company in
such a way that there is maximum work output to attain the goals of organization swiftly,
while retaining work quality. In absence of proper management, different sections go on to
attain individual targets. However, common goal may not be achieved, which would further
lead to delays, losses and low quality output.

Reduction in Wastage:
When resources of a company are effectively managed, wastage is reduced, thereby
lowering overall costs and attaining the state of ‘resource optimization’. This means that
company is making profits not only from output, but also from better and optimum use of
input. Proper utilization of resources and reduced wastage prevents both under
employment and exploitation of resources. Management can identify resources which are
scarce and find alternatives for the same, thus reducing the cost again. It also employs the
specialization of employment and leads to increased productivity and quality output.

Simplifies the Organizational Structure:

Management controls effective work division, specialization and resource allocation. This
creates a uniform flow of work and specifies boundaries of responsibilities, authority and
rights, which do not overlap. This structure is necessary, as it clarifies to each employee his
position and field of influence in the organization. In such a scenario, every employee
would know his/her basic rights, duties, immediate superiors and subordinates, along with
the knowledge of opportunities awaiting him, as his relation with the company grows.
Effective management also helps to ascertain that no two people are doing the same work
and that right person is allocated for the right job, thus increasing productivity

Increases Stability:
The company should be maintained in such a fashion that external market turbulences do
not hamper the company’s functioning. This requires effective changes that need to be
made in the company, without hurting the company’s stand or its workers too much.
Without proper management this will not be possible. Management will provide increased
stability and adaptability to the company, helping it survive market conditions and grow
with time. Also, the workers would not be apprehensive about losing their job, which
would, in turn, help them work with peace of mind.
Provides the “Feel Good Factor’’:
According to Harold Koontz, ‘‘Management is an art of getting things done through and
with people in formally organized groups”. This statement ascertains the importance of
people in the whole scenario. It is extremely important to keep the workers happy for the
successful functioning of the company. A company which is managed with efficacy prospers
rapidly and, in turn, produces better revenue, thereby opening avenues of growth for the
workers involved. The upward climb in the growth chart assures the workforce of not just
better salaries, but better positions, which provides motivation for better work.

Profits Galore:
This is a cumulative effect of all of the benefits mentioned above. Proper management
helps to build efficient organizational structure, set targets that are testing yet achievable
and optimize resource utilization (both human and otherwise). Such a scenario increases
profits by maximizing productivity and reducing costs. Happy and de-stressed workers
work with more zeal and enthusiasm. This increases quality and quantity of output, which
aids in the growth of the company, beating competition and emerging out victorious!