Almost 90% of startup businesses fail miserably within the first five years of starting up, of which almost 90% fail due to poor management.
Management has always been a core aspect of every business. But unlike the old times, managing the organisation has become a more difficult job due to the increasing competition in the internal as well as the external business environment. Good management can bring the company profit and reputation while poor management can just throw the company out of the competition.
Let’s take an example of management:
Suppose John opened up a small restaurant. Selling quality food to the customers and gaining their loyalty is his aim but that’s not his only duty.
To make his business run smoothly he needs to take care of things like planning menus, maintaining an inventory, ordering what’s required, planning the budget, maintaining the standards, dealing with customers’ complaints, hiring and training staff and a lot more.
If even one of them is overlooked his business will suffer a huge blow.
That’s where management comes into play. John and his staff can share the duties and work together to attain the goal of the restaurant. To avoid failure they need to work in a coordinated and planned manner. This ensures that no duty is overlooked and the business runs smoothly.
What Is Management?
Management is the process where a person plans, organises, directs and controls the activities and resources of the organisation or company to achieve its goal in an effective and efficient manner in an ever-changing environment. It is the process of supervising and controlling the business affairs of the organisation.
Management also involves establishing a business environment for the employees and employers so that they can work together to achieve the organisation’s goal successfully and competently. It guides a group of people to combine their works in a planned manner so as to attain the goal of the organisation.
The Importance Of Management
The importance of management can never be underestimated or ignored as it’s a proven fact that the success of a company entirely depends on how well it is managed.
Here’s why management is important for any business:
Aligning Goals
A company consists of employers and several employees who work together. Everybody has their own goals. Management gives them a common direction to achieve their goal together.
For example:
The goal of a company is to maximize their output and profit. The goal of an employee is to get the most out of the company in terms of both salary and recognition. Management helps in aligning these two goals by using effective employee motivation strategies which makes him give his best to the organisation.
