With global economy gradually extricating itself from the clutches of slowdown, MBA is all set to regain the sheen it was stripped off a few years back. As the economies become tighter, competition becomes tougher and resource management becomes more and more important, the human capital has become the key to any successful corporate enterprise. Management education is still an indispensable part therefore, with most domains still needing management professionals.
Survival is dependent on earning a livelihood. Let us look at the most basic means of livelihood which is agriculture. How can an MBA course help a farmer improve his business of farming? There are several ways if one again considers the basic functions of any business, i.e. operations, finance, human resource, marketing. Operations can be hugely impacted by the right management practices to help improve productivity and yield. Good financial management can itself increase the availability and growth of financial resources, human resources be it workers on the field also need to be handled well and a happy and willing human resource working as a team in a congenial work environment can again have a huge impact on productivity. Finally marketing is where one learns to make an appropriate pitch forecast demand, analyze the market and competition, etc. which are invaluable for the health of any business. This further reiterates that be it any business, knowledge of business management would always be helpful.
Importance of management
The importance of management in business is universally accepted. It acts as a driving force in business. Modern business is highly competitive and need efficient and capable management. It is through management that business activities are organized and conducted efficiently and objectives are achieved.
- Competitive strength: Management develops competitive strength in an enterprise. This enables an enterprise to develop and expand its assets and profits.
- Cordial industrial relations: Management develops cordial industrial relation, ensures better life and welfare to employees and raises their morale through suitable incentives.
- Motivates employees: It motivates employees to take more interest and initiative in the work assigned and contributes for raising productivity and profitability of the enterprise.
- New techniques: Management facilities the introduction of new machines and new methods in the conduct of business activities. It also brings useful technologies developments and innovation in the management of business activities.
- Optimum use of resources: management facilities optimum utilization of available human and physical resources, which leads to progress and prosperity of a business enterprise. Even wastage of all types are eliminated or minimized.
- Effective management: Society gets the benefits of efficient management in terms of industrial development, justice to different social groups, consumer’s satisfaction and welfare and proper discharge of social responsibilities.
- Expansion of business: Expansion growth and diversification of a business unit are possible through efficient management. It creates good corporate image to a business enterprise.
- Stability and prosperity: Efficient management brings success stability and prosperity to a business enterprise through cooperation and team spirit among employees.
- Team spirit: Management develops team spirit and raises overall efficiency of a business enterprise.
- Effective use of managers: Management ensures effective use of managers so that the benefits of their experience, skills and maturity are available to enterprise.
- Smooth functioning: Management ensures smooth, orderly and continuous functioning of an enterprise over a long period. It also raises the efficiency, productivity and profitability of an enterprise.
- Reduces turnover and absenteeism: It reduces Labour turnover and absenteeism and ensures continuity in the business activities and operations.
- Sound organization: A dynamic and progressive management guarantees development of sound organization, which can face any situation – favorable or unfavorable with ease and confidence.
Management is not only practiced in organization and business entities but management plays an important role in our daily lives and is practiced by every individual is some or the other way.
Well sometimes it is argued, that business management is learnt by practicing. This is true but what is economically viable. Let us take an example, if one wants to learn to drive a car, most people would not like to do this with a new car or without a tutor. The reason is that the cost of learning can be very high as the risk of accident can even result in the loss of life. Therefore everything cannot be learnt the hard way by just taking the plunge. It is always better to reach a threshold level with the help of tutoring ensuring that the probability of success increases.