Ans. 2.

Importance of management is given hereunder:

(i) Achieving Group Goals: It arranges the factors of production, assembles and organizes the resources, integrates the resources in an effective manner to achieve the goals. It directs group efforts towards achievement of pre-determined goals. By defining the objectives of an organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money, etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that the enterprise works towards the attainment of goals.

(ii) Optimum Utilization of Resources: Management utilizes all the physical and human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts and professionals, their services and optimum use of their skills and knowledge, thus avoiding wastage of any kind. If employees and machines are producing their maximum, there would not be under employment of any resource.

(iii) Reduces Costs: It gets maximum results through minimum input by proper planning. Management uses physical, human and financial resources in such a manner that it results in best combination. This helps in cost reduction.

(iv) Establishes Sound Organization: To establish sound organizational structure is one of the objectives of management which should be in tune with the objectives of the organization. For the fulfillment of this, it establishes effective authority and responsibility relationship, i.e., who is accountable to whom, who can give instructions to whom, who are seniors and who are subordinates. Management fills up various positions with right persons with right skills, training and qualifications. All jobs should be clear to everyone.