Importance Of Management In An Organization The Complete Guide

  • By Neha Siddhwani
  • 21 March 2023
organisation management importance

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Any organisation would want its employees to be productive and perform at their best to fulfil company goals and objectives. To do this, you need someone who can foster healthy professional relationships and give employees the right incentive to complete their assigned tasks. This is where management shines through. 

Management is more than just delegation. It involves planning, organising and finding the right people for the job. Another responsibility of theirs is to assess current conditions and develop robust and flexible solutions to address any issues the company or organisation faces. 

Working as a manager is a responsible role, and as a result, it often entails good pay packages. Therefore, many professionals aspire to become managers. For students, having an MBA degree can get them to a managerial position faster than others who do not have an MBA degree

An MBA course imparts valuable business administration knowledge, helping students understand the intricacies of running a business. This knowledge comes into play when these students join a company’s management. 

What Is Management? 

Management is a broad term. It can refer to any employee occupying senior-level positions in a company or, in simple terms, someone in charge of a small team of employees.

For example, they can be categorised as

  • General managers, who are responsible for several departments in an organisation.
  • Functional managers who deal with specific parts of an organisation, like accounting or finance,
  • Project managers who, as their name suggests, handle particular projects for a department. 

Why Management Is Important In An Organisation

Managers are responsible for the success or failure of a company or organisation. This is because they're tasked with understanding employee roles and processes, having strong communication skills, and investing in employee management tools and software. All of these require managers to have a good base of soft skills in addition to their technical qualifications. 

Have you ever worked a job with a lousy boss? Chances are you probably didn't stick around the organisation for long before finding another job. The importance of management in an organisation is further exemplified in these situations. Good management will always result in increased employee retention and engagement. 

What Factors Play A Role In Good Management?

Here are some factors that exemplify why management is integral to an organisation:

  • Setting And Achieving Company Goals 

The core responsibility of managers revolves around setting and accomplishing company goals. To do this, they oversee operations, manage resources, delegate tasks, and set proper employee benchmarks. They are also responsible for hiring qualified team members and staff who can handle the tasks given to them. 

  • Optimising Company Resources 

Managers are responsible for allocating and optimising company resources. This means they are tasked with using or sometimes investing in resources that enable employees to work more efficiently to accomplish company goals. 

  • Creating A Dynamic Work Environment 

A good work environment is crucial for any organisation. People naturally work better among team members who boost their mood and morale. Managers must know their team and be approachable.

To do this, managers must maintain open communication and foster collaboration among team members. It boosts employee morale and efficiency and can improve their work quality.

  • Developing Robust Systems And Frameworks

Productivity and efficiency in managers are valued across all fields and industries. It eliminates mistakes, saves time and increases revenue. Most frameworks and systems managers develop an aim towards achieving more with less. 

This can also include helping the organisation grow by bringing new ideas to the table and implementing those ideas. In other words, managers are meant to carry out specific tasks to achieve maximum profitability and performance without over-exerting resources or time. 

  • Generating Revenue 

Cost reduction and generating profit are crucial principles of any organisation. Managers play a part in the cost of production. This can involve managing overhead costs like office supplies and utility or personnel costs. Generally, managers do not have direct control over these expenses. Still, they can influence them through staff training or policy changes. 

  • Think About The Big Picture

Good managers think about both the long-term and short-term effects of their decisions. This type of big-picture mindset helps managers with flexible solutions and make effective long-term progress. 

For example, asking questions like what skills their team is missing, who else they need to hire to grow the team, and what is the main goal they want to achieve. All of these play a part in the long-term growth of their team and organisation.

How Do People Get Into Managerial Roles?

Most professionals in managerial positions usually have an MBA degree. This is because an MBA course teaches a blend of generic and specialised management courses, which helps students develop both their technical and soft skills. 

For example, an MBA in operations would teach students the technicalities of logistics and supply chain management in addition to teaching them managerial practices. This gives them an all-around education that will prove beneficial later in their careers as they occupy senior management positions. 

An MBA degree in your portfolio will allow you to navigate managerial positions in companies in any industry. In addition, you will better understand organisational processes than those without formal training in this field. 

Top MBA Colleges In India 

Students who want to gain MBA admissions into these top schools must pass national or state-level entrance exams like CAT, XAT, GMAT, MAT, etc. or institute-specific entrance exams. 

They also need a minimum of 50% aggregate marks in their undergraduate or bachelors from a recognised college or institution. Students in the final year of their UG programs are also eligible to apply to an MBA course

Here are the top business colleges in India that offer MBA courses

College Name 

Average Fees

Entrance Exams 

Xavier School of Management,


₹27.40 Lakhs


Management Development Institute (MDI)

₹24.20 Lakhs


Indian Institute of Management, (IIM) Ahmedabad

₹24.61 Lakhs


Indian Institute of Management, (IIM) Bangalore

₹24.50 Lakhs


Symbiosis Institute of Business Management, (SIBM) Pune

₹22.20 Lakhs


S.P. Jain Institute of Management and Research (SPJIMR)

₹20.42 Lakhs


Indian Institute of Technology, (IIT) Delhi

₹10.40 Lakhs


Indian Institute of Management, (IIM) Kozhikode

₹20.50 Lakhs


National Institute of Industrial Engineering, (NITIE) Mumbai

₹11.33 Lakhs


Indian Institute of Technology, (IIT) Madras

₹9.14 Lakhs



An MBA course gives you knowledge of different fields like accounting, finance, marketing, human resources, etc., which are all important for complex managerial positions. If you're currently looking into pursuing your MBA postgraduate degree, consider colleges powered by Sunstone.   

Sunstone is present in 50+ institutions across India, and it provides industry-relevant courses and modules to students who register with Sunstone. These programs include skill development, personality development, interview preparation, etc. Students will also get hands-on training opportunities and a dedicated placement support after completing their course. 

FAQ - Importance of Management

What are the types of management in an organization?

There are several types of management in an organization, and preparing a list or categorising can always run the risk of being vague or too exaggerated. It is primarily because of how someone perceives a job role. But to give you an idea, here is a list of management categories. 

  • General managers: People who head several departments in an organisation.
  • Functional managers: People who deal with specific parts of an organisation, like accounting or finance,
  • Project managers: People who handle particular project(s) for a department. 

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