It is very important for management to be efficient and effective. Successful businesses are the ones that are very efficient. When management uses resources efficiently, they are able to maximize production, the use of the workforce, and profits. Inefficiency leads to increased costs. It may also lead to a misuse of the workforce, which could create problems.
Management must also be effective. It must be effective in dealing with issues that arise with the workforce. Unhappy workers may be less productive. If tensions exist in the workplace, productivity may also suffer. Management must be able to deal with these issues to provide a positive work environment.
Management must also be effective when dealing with its customers. It is important for management to create an environment where the company has good relationships with its customers. Having good customer service is very important for the success of a business.
Management must also be effective in dealing with changes in the economy and changes in business trends. Management must respond when conditions in an industry change. Management must also respond to changing economic conditions. The most successful businesses are the ones that deal most effectively with issues that arise in the economy, with their workforce, and within the industry in which they exist.