According to this statement, without management an enterprise is merely a collection ofresources of production, such as, manpower, machinery, money and material. In other words,without management, resources of production will remain resources and shall never beconverted into production. The importance of management can be understood from the factsgiven below:

(i) Management helps in achieving Group Goals: It is the most important characteristic ofmanagement that it is a goal-oriented activity. A manager achieves these goals by giving theproper direction to the efforts of all individuals,

(ii) Management Increases Efficiency: A manager increases efficiency through theoptimum utilisation of all the resources, such as, Man, Machine, Material and Money.

(iii) Management Creates a Dynamic Organisation: Every organisation works in an everchanging environment. To face the changing environment, many changes need to be madein the organisation as well. But people resist changes. Manager creates a favourableenvironment through introducing employees to the benefits arising by adapting changes.