Importance of Management

The success of an organization can be traced back to the way it is managed. Whether you are talking of a small to medium-sized or a large establishment, management is so crucial to be overlooked.

So, what is it about management that makes it so inevitable in the pursuit of success? To answer this question, we need to go back to the drawing board – to the essential functions of management. These are planning, organizing, staffing, directing, and controlling.

In this article, you are going to discover the importance of management in any organization by looking into each of these aspects. You will then be able to come up with the right management structure for your organization or help someone else who might need the information.

Here are 10 reasons why management is important to any organization.


Planning in management is the process of laying down how and when to do the appropriate so that goals can be achieved either in the short term or long term. Remember, failing to plan is planning to fail.

1) Helps to achieve goals and objectives

First of all organization set the goals of  organization.  These goals must be planned for beforehand, and it is up to a good management structure to come up with proposals and plans of how to achieve them.

Proper planning ensures that the organization follows a mapped course towards its vision and mission. 

2) Provides a sense of focus and direction

When an organization plans its activities, it is able to have a singular focus. Failure to plan can throw an entire business into disarray because no one will understand where they are headed.

A management structure that plans finds it even easier to anticipate problems and cope with them. Once an organization has planned its activities well, all other functions of management fall into place. 


Organizing involves defining and grouping roles, establishing authorities and frameworks that are geared towards the attainment of goals. It breaks down how plans will be implemented and assigns the resources needed to do so.

3) For optimum utilization of resources

These resources include both human resources and technology. By assigning individuals roles that best suits them, the organization can reap the maximum from each employee. Organizing paves the way for specialization and the best use of talents. It helps the management to save money and other resources while minimizing losses.

4) To maintain responsibility and order

An organized workforce is always effective. They work as a team towards one common goal. When everyone knows what they ought to do, they will be more responsible because they are doing what they know best. It is also easy to hold people accountable when you know what each one of them does.


To staff means to select, develop, maintain, and utilize personnel in such a way that the organization can achieve its goals effectively and economically. Staffing might not be applicable to sole proprietorship, but it is still very essential.

5) To get the most qualified personnel for the job

Staffing as a function of management helps to discover skilled people to fill various positions in the organization. This results in high performance and maximum productivity. It also helps to remunerate employees fairly which in turn translates to increased job satisfaction. This is the reason why many workplaces have thorough vetting procedures before employing people.

6) To reduce workload and get things done

Efficient staffing ensures that work is divided among employees according to the roles they have been assigned. The fact that each one of them is good at what he or she is doing means that work will be completed faster and better. Employees stay happy and motivate as there is no pressure in the workplace.


In management, directing is the same as supervising or leading. Directors, supervisors, and leaders are responsible for overseeing their subordinates. It is impossible to run an organization without leadership as you will find out below.

7) Helps facilitate good communication

Good directing helps to build a two-way channel of communication between the leadership and subordinates. Employees can express themselves, and as a result, matters arising are address appropriately. Communication is a crucial contributor to the performance of an organization so it can never be ignored.

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