Wherever there is a prearranged group of people functioning for the achievement of a common objective, some type of management becomes vital. No organization can be run effectively unless there is somebody to supervise the actions. It is not hard to understand the effects of the situation in which an organizational group has no management in any way. If various people constituting the group are left to themselves, the end result will be utter confusion.

Production function has accepted huge significance as a primal function in every industrial undertaking. All other functions rotate around this function. The production activities are independent of the size of the undertakings. In a small concern one person may be undertaking this function while in big organizations, various individuals or separate teams may carry out this action. The success or failure of an organization depends upon the amount of care and function with rationality, and it will also help an undertaking to achieve its organizational goals.