Why Is Effective Management Important?

Effective management is important to an organization because it involves planning and goal setting, along with motivation of workers in order to execute the plans. Effective management creates a direction for the organization and communicates the vision internally and externally.

In the planning phase of management, managers attempt to align organizational strengths with opportunities in the marketplace. Strategic planning includes assessments of various factors, such as company strengths and weaknesses, as well as opportunities and threats in the external environment. A clear plan allows managers to align human resources and other resources toward the larger goal.

Worker development is another crucial role of effective management. Managers hire, train and coach employees to fulfill necessary roles and complete assigned tasks. Development of workers often has a significant influence on the level of productivity and success that an organization experiences. As employees develop, they are able to take on more responsibilities and perform their roles more thoroughly.

Another vital element in effective management is decision-making. On a daily basis, managers make decisions that impact the near-term and long-term success of the organization in achieving its goals. In a retail setting, for instance, a manager makes decisions about customer issues that may impact satisfaction and loyalty. In manufacturing, management decisions may affect production levels and operational efficiency.