The Importance of Effective Management

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The Importance of Effective Management

Management: is the organisational process that includes strategic planning, setting; objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results. Management also includes recording and storing facts and information for later use or for others within the organization. Management functions are not limited to managers and supervisors. Every member of the organisation has some management and reporting functions as part of their job.

Successful Management

  • Successful management is concerned with effectiveness and efficiency.
    • Effectiveness is the relationship between the goals the manager sets and achieving them.
    • Efficiency is concerned with the relationship between goal achievment and resources. If a business achieved its goals but used lots of resources in the process, it isnt very efficient! On the other hand, if a firm can reduce the amount of inputs and get the same output... thats efficient!
  • Effective management invariably results in business success, while ineffective management often results in business failure.

Why Effective Management is Important

Effective Management is important because:

  • Good managers are the key to a more competitive economy and higher performing enterprises
  • Job creation depends on better management skills
  • Must improve to meet today‚Äôs world best practice standards and the challenges of the Asia-Pacific century

How managers contribute to effective management

Effective management is also important because managers:

  • Provide vision
  • Are the decision makers
  • Co ordinate the activities within the business
  • Are legally responsible for what the business does
  • Are accountable to stakeholders
  • Largely determine whether the business will be successful

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