All organizations depend upon group efforts. Group action and joint efforts have become necessary in every sector of life. The idea of Management plays a vital role when people work together to achieve common objectives. The success in group efforts depends upon optimum mutual cooperation among the members of the group. It also creates a sense of teamwork and coordination among specialized efforts. This co-ordination is indispensable in all organizations whether a business firm, a government, a hospital, a college, a club, etc. Effective Management is a creative force which helps in the maximum utilization of resources.

The development of an effective as well as competent managerial leadership alone can convert the disorganized resources of men, money, materials and machinery into a productive enterprise. In the absence of management, an organization is merely a collection of men, money, materials and machinery. Management is the dynamic life-giving element in every business. Without it the resources of production remain resources and never become production. Active as well as effective system of Management is the catalyst without which no organization can survive and grow. It is required to plan, organize, direct and control group efforts. Management provides leadership and motivation to individuals. There is continuous need for management in an organization. As an innovative force, management performs the same role in an organization which brain does in the human body. It is the fundamental coordinating mechanism that underlies organized endeavor.

The importance of management has increased tremendously in recent years due to increase in the size and complexity of organizations, turbulent environment and growing responsibilities of business. Sound management helps in maximizing output and minimizing costs. It maintains a dynamic equilibrium between an organization and its ever changing environment. Management is responsible for the creation, survival and growth of organizations.

The significance of management in the modern business world has increased tremendously due to the following challenges ;

• The increasing specialization of work
• Extremely sophisticated and capital intensive technology on global marketing perspective.
• Emergence of cut throat competition in the market
• Exercise of regulations on business by the Governing Authority
• Need for reconciling the interests of various groups, e.g., owners, workers, customers and the public
• Growth in the unionization of labor
• The presence of a Turbulent environment of business
• Increasing complexity of business decisions

By designing effective structures that provide opportunities for self-expression, and initiative, management provides human satisfaction. Management makes all the difference in the quality of life between nations. Thus, management is an essential instrument of human progress and keystone of modern society.