Management as the effective use of human and material resources; importance of management today

Discussion of the statement

The statement defines management by its purpose and its means. Its purpose is to achieve the enterprise's objectives; its means is the effective use of human resources (the knowledge, skills and effort of people) and material resources (money, machines, materials, buildings, technology, information). The key word is effective: management is not merely using resources but using them so that the right objectives are achieved (effectiveness) with the least waste (efficiency).

The definition brings out several features of management:

1. Integrates resources. Material resources are productive only when combined with human effort; management brings them together.
2. Works through people. Managers achieve results by getting others to perform: hence the importance of directing, motivating and leading.
3. Universal: needed in every kind of organisation, large or small, profit-making or not.
4. Aimed at objectives. Every managerial activity is directed at defined objectives.
5. Collective: it coordinates the efforts of many people towards common goals.
6. Never finished: planning, organising, staffing, directing and controlling follow one another without end.

Each of those functions is a way of putting resources to work:

• Planning decides what is to be achieved, which resources and activities that needs, who will do what and by when, so that money and effort are not spent on the wrong things.
• Organising divides the work, groups it into jobs and departments and gives each the authority and resources it needs, so that nothing is duplicated or left undone.
• Staffing puts people with the right skills in those jobs and develops them.
• Directing guides, motivates and communicates with those people so that their effort goes into the plan.
• Controlling compares results with the plan and corrects shortfalls, so that waste is caught early.

The statement is broadly correct, but incomplete. Modern management also has to satisfy employees, customers and society, act ethically and adapt to a changing environment; human beings are not simply another resource but people with needs, whose commitment must be earned.

Importance of management in today's scenario

1. Managing change. Rapid technological change, digitalisation and shifting regulation require planning, flexibility and leadership; management helps people adapt so that the firm stays competitive.
2. Managing knowledge workers. Today's employees are educated and mobile; management must motivate and retain them.
3. Innovation. Management creates the conditions for new products, processes and business models.
4. Achieving goals amid competition. Global competition and informed customers demand quality, speed and low cost, which only good management delivers.
5. Coordination of complex organisations spread across functions, regions and countries.
6. Optimum use of scarce resources. Capital, energy and raw materials are costly; management lowers costs and raises productivity.
7. Stakeholder and social responsibility. Business is expected to treat employees fairly, serve customers honestly, protect the environment and contribute to society.
8. Crisis and risk management. Pandemics, supply shocks and cyber risks require resilient management.
9. Economic development. Well-managed enterprises create jobs, exports and national wealth.

Example. Two textile mills with the same machinery and workforce differ in output and profit because one plans production well, trains and motivates workers, maintains machines and controls costs, while the other does not.

Conclusion

Management is the effective use of human and material resources to reach objectives, and in today's competitive, fast-changing and socially conscious world its importance has only grown. Without it, even ample resources produce poor results; with it, modest resources can achieve a great deal.