2. 1. Optimum utilization of scarce
resources
All resources employed in an organization are scare,
if not utilized logically and effectively the profitability
and productivity of the organization will be affected.
Such as men, material, machinery, money and
methods.
3. 2. Accomplishment of group goal
All activities of management are goal oriented.
Management exists for the achievement of specific
objectives.
4. 3. Essential to reduce cost of product
In the global economy, only those firms,
which can supply quality goods at reasonable
rate. If the various elements of production
such as men, material, method, machinery,
money are not properly utilized, it will invite
inefficiency and wastage.
5. 4. Help in national growth
Well managed organizations are centers where the
precious resources of the country are being
effectively utilized. They create quality products
and services for the country and provide numerous
employment opportunities.
6. 5. Stability
Management can adjust the business according
to the changing policies of the government.
