52 Examples of the Importance of Management

John Spacey, March 19, 2022

Management is the practice of directing and controlling an organization. This is a basic function that is required of all organizations. Management uses the resources of an organization to try to achieve that organization's goals. The following are important functions performed by management.

Administration	Benchmarking
Budget Control	Budget Planning
Business Analysis	Business Improvement
Business Optimization	Business Processes
Communication	Compliance
Cost Control / Reduction	Customer Relationships
Decision Making	Delegation
Directing Employees	Efficiency Use of Resources
Employee Feedback	Employee Performance
Estimates	Financial Controls
Forecasting	Goal Setting
Handling Issues	Internal Controls
Investor Relations	Knowledge Development
Knowledge Sharing	Management Accounting
Negotiation	Organization
Organizational Structure	Partner Management
Policy	Problem Solving
Procedures	Procurement
Project Management	Recruiting
Reporting	Resource Utilization
Responsibility & Accountability	Risk Control
Risk Identification	Risk Mitigation
Role Planning	Strategy Planning
Supervising Employees	Team Culture
Training	Work Coordination
Work Productivity	Working Conditions

Importance of Management

In order to use resources efficiently, an organization must be managed. Management is any practice that plans and organizes labor, capital and resources to produce value. As such, management is required for all value production and is the basis for the standard of living and quality of life of a society.

Counterexample

Where management doesn't exist or where it is lacking organizations may have several problems as follows.

Lack of accountability	Unclear roles and responsibilities
Disorganized efforts	Failure to meet commitments
Loss of reputation and trust	Failure to clear issues
Low productivity	Waste of capital and resources
Destruction of value	Financial malfeasance
Decline of organizations	Negligence
Noncompliance with the law	Employee turnover
Customer defections	Inefficient processes
Noncooperation with partners	Noncooperation between employees
Poor capital utilization	Financial instability and decline
Project failures	Organizational failure
Infrastructure failure	Decline of society