3. MEANING
Business Management is the coordination and
administration of tasks to achieve the business goal.
Such administration activities include setting the
organization’s strategy and coordinating the efforts of
staff to accomplish these objectives through the
application of available resources.
4. IMPORTANCE OF BUSINESS MANAGEMENT IN MODERN
BUSSINESS
ACHIEVEMENT OF ORGANISATIONAL
GOAL
This is the first importance of
management and it means that any
management wants only that the objective or
goals of the business are achieved and also
wants to improve the growth of the business.
5. OPTIMUM UTILIZATION OF
ORGANIZATIONAL RESOURCES
This is the second importance of management and it
means that if any manager has to work in a good
way, then it will have to be highly utilized by all
resources of its organization a very proper manner,
whether it is material resources, financial resources
or human resources.
6. REDUCE COST
It gets maximum results through minimum input
by proper planning and by using minimum input
& getting maximum output. Management uses
physical, human and financial resources in such a
manner which results in best combination. This
helps in cost reduction.
7. The main aim of the company is to get the most
efficient result i.e. to achieve maximum profit
by maximizing the output and minimizing the
input.
Management involves the optimal utilisation of
resources and helps in cost reduction. These two
factors consequently increase the efficiency of
the company.
INCREASING EFFICIENCY
8. TO SURVIVE IN A DYNAMIC ENVIRONMENT
A company operates in a dynamic
environment where a number of external
factors like political, social, economical
etc. affect its functioning. This makes it
almost obligatory for the company to be
flexible and change its short term goals
and working styles according to the
changing environment.
Management helps the company to adapt
to the changing environment in order to
remain successful.
9. Proper management always aims at sound
functioning of the organisation and reduces the
failure rates. Thus, helping to overcome tough
situations and keeps the organisation ahead of
competitors.
In the modern business environment, one can pursue
their organisation in large markets through proper
management.
TACKLING COMPETITION
10. Good management not only reduces difficulty of
the task but also prevents the wastage of costly
and rarely available resources.
Management helps in providing good quality of
services and products which increases the living
standard. It also leads to more profit of the
organisation and thus providing fair wages and
generating more employment opportunities.
ESSENTIAL FOR THE WELFARE OF THE SOCIETY
11.
12.
13.
14.
15.
16.
17. Management consis
ts of actions and
plans
whereby administra
tion entails setting
objectives and
policies.
Management aims
at managing not only
people but also their
work.
Whereas Administratio
n focuses on how best
the resources of an
organization can be
utilized.
