Importance of Management In An Organization [10 Reasons]

The success of an organization can be traced back to the way it is managed. Whether you are talking of a small to medium-sized or a large establishment, management is so crucial to be overlooked.

So, what is it about management that makes it so inevitable in the pursuit of success? To answer this question, we need to go back to the drawing board – to the essential functions of management. These are planning, organizing, staffing, directing, and controlling.

In this article, you are going to discover the importance of management in any organization by looking into each of these aspects. You will then be able to come up with the right management structure for your organization or help someone else who might need the information.

Here are 10 reasons why management is important to any organization.


Planning in management is the process of laying down how and when to do the appropriate so that goals can be achieved either in the short term or long term. Remember, failing to plan is planning to fail.


Importance of Management


1) Helps to achieve goals and objectives

First of all, organizations set their goals. These goals must be planned beforehand, and it is up to a good management structure to come up with proposals and plans for how to achieve them.

Proper planning ensures that the organization follows a mapped course towards its vision and mission.


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2) Provides a sense of focus and direction

When an organization plans its activities, it is able to have a singular focus. Failure to plan can throw an entire business into disarray because no one will understand where they are headed.

A management structure that plans finds it even easier to anticipate problems and cope with them. Once an organization has planned its activities well, all other functions of management fall into place.


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Organizing involves defining and grouping roles, establishing authorities, and frameworks that are geared towards the attainment of goals. It breaks down how plans will be implemented and assign the resources needed to do so.


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3) For optimum utilization of resources

These resources include both human resources and technology. By assigning individuals roles that best suit them, the organization can reap the maximum from each employee. Organizing paves the way for specialization and the best use of talents. It helps the management to save money and other resources while minimizing losses.


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4) To maintain responsibility and order

An organized workforce is always effective. They work as a team towards one common goal. When everyone knows what they ought to do, they will be more responsible because they are doing what they know best. It is also easy to hold people accountable when you know what each one of them does.


importance of organization and management



To staff means to select, develop, maintain, and utilize personnel in such a way that the organization can achieve its goals effectively and economically. Staffing might not be applicable to a sole proprietorship, but it is still very essential.

5) To get the most qualified personnel for the job

Staffing as a function of management helps to discover skilled people to fill various positions in the organization. This results in high performance and maximum productivity. It also helps to remunerate employees fairly which in turn translates to increased job satisfaction. This is the reason why many workplaces have thorough vetting procedures before employing people.


importance of organizing in management


6) To reduce workload and get things done

Efficient staffing ensures that work is divided among employees according to the roles they have been assigned. The fact that each one of them is good at what he or she is doing means that work will be completed faster and better. Employees stay happy and motivate as there is no pressure in the workplace.


importance of organising in management



In management, directing is the same as supervising or leading. Directors, supervisors, and leaders are responsible for overseeing their subordinates. It is impossible to run an organization without leadership as you will find out below.

7) Helps facilitate good communication

Good directing helps to build a two-way channel of communication between the leadership and subordinates. Employees can express themselves, and as a result, matters arising are address appropriately. Communication is a crucial contributor to the performance of an organization so it can never be ignore.


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8) Helps to initiate action and keep the organization moving

Through supervision and motivation, projects are initiated and sustained. Imagine for a moment, an organization without leaders. There would be no sense of direction, and the whole establishment would just collapse. Directing establishes authority to which employees are answerable.


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In an organization, the controlling function of management focuses on checking whether progress is being made, while measuring the performance of various aspects. Many small organizations ignore controlling as an essential contributor to success to their own peril.

9) To monitor progress and chart a way forward

It is very important to conduct audits and reviews of how the organization has been performing. That is the only way to measure progress, correct mistakes and make improvements towards an even more successful future. An organization with strong internal control manages to sustain good results for long periods of time.


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10) To hold individuals accountable

Controlling helps to identify who is doing what in an organization. It helps you decide who to keep in your team and who is not worth it. It is this function of management that helps organization conduct performance appraisal, which is a very crucial element in business.


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As you can tell, it is impossible to overlook the importance of management in an organization. The direct opposite of sound management is mismanagement. With it comes confusion, lack of direction and ultimately, failure. Even if you are your own boss, do what it takes to plan, organize, direct, and control what you do. That’s what a good manager does. For further information

In every organization, management plays an important role for achieving the goals and objectives of the organization. Thats why we say importance of management is necessary for every organization.

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