Role & Importance of Professional Management

Role & Importance of Professional Managers in Business Organizations

Role of Professional managers

1. Formal Education:

   Professional managers are formally educated and trained to run the business organisation. They place great emphasis on training and development of managers. Most of the professional managers have either degree or diploma in management.

2. Merit the basis of promotion :

   Professionally managed companies follow merit as the basis of promotion at higher levels. Family neither ties, nor biased as the basis of promotions is normally not followed in such organisations.

3. Delegation of authority:

   The senior managers delegate authority to the subordinate managers. Routine and repetitive activities are given in the charge of subordinates. Only important and crucial matters are decided by the superiors.

4. Social responsibility:

   Professional managers give the due consideration to the concept of social responsibility. In fact, they try to bring reconciliation or a balance between profit motive and social responsibility. They go for consumer oriented products. They try to improve the quality through research and development, and so on.

5. Employees Participation:

   The top management not only secures the active participation of subordinate managers in planning and controlling activities, but they also encourage initiative and innovative ideas from the employees. Valuable suggestions are implemented and those who provide ideas are often rewarded.

6. Automation and Modernisation :

   Professional managers advocate the need for automation and modernisation. They recognise the change brought in by changing situations, and are ready to accept that change. They also encourage their subordinates to willingly accept the automation and modernisation plans of the organisation.

7. Decentralisation :

   Professional management believes in balance between centralisation and decentralisation. Important matters are centralised, and other matters are decentralised. The top management believes that involvement of lower level managers is vital to the success of the organisation.

8. Style of leadership:

   Professional managers follow the situational style in managing their business activities. They are more of democrats rather than autocrats.

Importance of Professional Management

1. It helps in Achieving Group Goals –

   It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of 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 enterprise work towards attainment of goals.

2. Optimum Utilization of Resources –

   Management utilizes all the physical & human resources productively. This leads to efficacy in 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, professional and these services leads to use of their skills, knowledge, and proper utilization and avoid wastage. If employees and machines are producing its maximum there is no under employment of any resources.

3. Reduces Costs-

   It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction.

4. Establishes Sound Organization-

   No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone.

5. Establishes Equilibrium-

   It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.

6. Essentials for Prosperity of Society –

   Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

Important links

• Conflict Management Technique- Conflict Resolution & Stimulation
• Implications & Process of Organizational Culture
• Types of Organizational Culture
• Principles of Organisational Culture
• Steps of Managing Organizational Culture
• Entrepreneurship- Meaning, Definition, Functions & Characteristics
• Financial management- Meaning, Characteristics and Objectives
• Project Management- Meaning, Characteristics, Functions
• Components of Attitudes & ABC Model of Attitude
• Attitude in Organisational Behavior- Function, Characteristics & Properties

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