Is there a relationship between management and business success? What is the impact of management on business success?
This is a question that has been studied by academics and business professionals for a long time. There have been numerous research studies on the matter but the findings have never been conclusive. Some studies indicate the importance of management while others indicate the opposite.
What is Management?
Management is a process that encompasses all activities that are performed within an organization to achieve its ultimate goal. Also, management is important for achieving success in any organization because it helps to ensure that all resources are being used effectively and efficiently and that all employees are working together towards the same goal.
What Contributes to Good Management?
However, management is not everything. Other factors contribute to a business’s success. For example, the owner of an organization will play a significant role in its success or failure.
This is because he will be responsible for making all critical decisions concerning the organization’s operation. He will also be responsible for recruiting and retaining good employees who will help to achieve the company’s goals efficiently.
Business Financial Health
A business’s financial health will also play a significant role in determining whether it will succeed or fail, irrespective of how well-managed it is. For example, if a business has inadequate financial resources to sustain its operations, it will become insolvent and eventually fail regardless of how well-managed it is. However, even if a business has adequate financial resources, a lack of effective management can result in poor performance which may lead to failure.
For example, if an organization does not have effective management. And does not have appropriate systems to ensure that all employees are working towards achieving specific goals. Perhaps then it may not be able to achieve its objectives even though it has adequate financial resources at its disposal.
Impact of Management on Business Success
In summary, management is important for a business’s success. However, management is also not everything.
Other factors also impact the success. For example, such as the owner’s ability to make appropriate strategic decisions and the financial health of the business will also play a role in determining its success. In this regard, management will be an important factor that contributes to a business’s success, but not the most significant one.
Signs of Good Business Management
There are signs of good business management that can be used to determine whether an organization is well-managed or not. These are as follows:
- The employees of a business will be working effectively towards achieving the organization’s goals.
- The employees will be working efficiently and effectively.
- Also, the business will achieve its objectives on time.
- There will also be proper utilization of all resources within the organization.
- There will be, in addition, effective communication among management and employees to ensure that everyone is working towards achieving the same goal.
- Lastly, management will play an important role in ensuring that a business is profitable and successful.