---
title: "Importance and functions of management"
subject: "Organization and Management"
chapter: 2
key: "semester_7/organization_and_management:management-importance-functions"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/management-importance-functions
site: BCT Engineering
---

# Importance and functions of management

Organization and Management · Chapter 2: Management

- Asked in: 2070 Asar, 3+5 marks
- Video: [Management Process | Functions of Management process #managementprocess](https://www.youtube.com/watch?v=q6LMjurECZM) — Educationleaves
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/management-importance-functions
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-2

## Question

Explain the importance of management and discuss the different functions of management.

## Short answer

Management achieves group goals, increases efficiency, optimizes resources, creates a dynamic organization, ensures stability and growth, develops people, provides social benefit, and reduces conflict. Its functions are planning, organizing, staffing, directing, coordinating, and controlling.

## Answer

#### 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.

```text
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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. How does management increase efficiency?
   A. By eliminating planning
   B. By increasing the number of workers
   C. By avoiding change
   D. Better planning and control reduce waste and cost
   Answer: D. Planning and control reduce waste. (Key point: Efficiency)

2. Which example shows management maintaining stability?
   A. Nepali firms surviving COVID-19 lockdowns
   B. Firms closing in lockdowns
   C. Firms ignoring change
   D. Firms hiring only
   Answer: A. Sound management keeps an enterprise running in difficult times. (Key point: Stability)

3. Which function covers supervision, leadership, motivation and communication?
   A. Staffing
   B. Directing
   C. Organizing
   D. Controlling
   Answer: B. Directing gets work done through guidance. (Key point: Directing)

## Related in Organization and Management

- [Define management; functions of management](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amanagement-functions) — Organization and Management, chapter 2, asked 3×
- [Personnel management and its functions](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-mgmt-functions) — Organization and Management, chapter 7, asked 3×
- [Personnel management vs HRM](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-motive-hrm) — Organization and Management, chapter 7
- [Purchasing and functions of purchasing department](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apurchasing-functions) — Organization and Management, chapter 6, asked 3×
- [Needs, functions and importance of MIS](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-needs-functions-importance) — Organization and Management, chapter 9, asked 3×
- [Functions of marketing](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amarketing-functions) — Organization and Management, chapter 6, asked 2×

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