Importance And Importance Of Management

1496 Words6 Pages
The Importance of Management and its challenges in the corporation environment.

The need of management is observed though Fayol’s analysis since he noticed that management needs proper skills for organizational success. Fayol questions whether managerial ability is fundamental for firms’ performance, and also why some educational institutions and universities were failing to teach managerial training. The author concluded that there was an absence of management theory and he decided to characterize a theory as “collection of principles, rules, methods and procedures according to past general experience”. With Fayol’s background he realized that many decision makers already had management knowledge, however in practice, the executives were not following a single management theory, revealing some contradictions and poor systematic reflection within organizations. (Wren Daniel,The Evolution of Management thought, 2009). One of the most important management theorists considered a lack of management theory making the process more challenging to put in practice because
…show more content…
The economist Joseph Schumpeter focused on the transformation of the work of entrepreneurs in innovation and evolution generation. He highlighted entrepreneurship as vital for 'creative destruction'. Peter Drucker, the most renowned contemporary management thinker on the topic of business and management, brought this perception further, characterizing the entrepreneur as a person who is very ambitious for changing, reacting to and analyzing the possible opportunities inside an environment. Entrepreneurship is the principal idea for increasing economic activity and employment probabilities in all societies. Entrepreneurship is understood as a particular surrounding, depending not on a single dominant factor but rather on 'a group of factors' on individual, societal and national levels (Nandamuri at all,
Get Access