Importance and functions of management

Importance of management

1. Achieves group goals: It gives direction and coordinates effort towards objectives.
2. Increases efficiency: Better planning and control reduce waste and cost.
3. Optimum use of resources: Men, money, materials, machines and methods are used wisely.
4. Creates a dynamic organization: It helps adapt to change in technology, competition and law.
5. Maintains stability and growth: Sound management keeps an enterprise running in difficult times, for example Nepali firms during COVID-19 lockdowns.
6. Develops people: Training and motivation improve skills and morale.
7. Social benefit: Better products and services, employment and tax revenue for the country.
8. Reduces conflict through clear authority and coordination.

Functions of management

1. Planning: Setting objectives and deciding the course of action, policies, budgets and procedures.
2. Organizing: Dividing work, creating departments, assigning authority and responsibility.
3. Staffing: Recruitment, selection, training, appraisal and compensation of people.
4. Directing: Supervision, leadership, motivation and communication to get work done.
5. Coordinating: Integrating the activities of different units.
6. Controlling: Setting standards, measuring performance and taking corrective action.

Plan -> Organize -> Staff -> Direct -> Control

For example, a Nepali commercial bank plans its yearly targets, organizes branches, staffs them, directs through branch managers and controls with monthly reviews and Nepal Rastra Bank reporting.