In any organization there are different objectives and management has to achieve all objectives in an effective and efficient manner.
These objectives of management can be classified into three categories:
1. Organizational objectives
2. Social objectives
3. Personal objectives
Let’s discuss these objectives one by one.
Objectives of Management: Organisational Objectives
Management is responsible for setting and achieving objectives for the organisation. The main objective of any organization should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business.
- Survival: The basic objective of any business is survival. In order to survive, an organization must earn enough revenues to cover costs.
- Profit: Management has to ensure that the organization makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise.
- Growth: To remain in the industry, management must exploit fully the growth potential of the organization. There are many indicators of growth such as sales volume, increase in the of employee count, the number of products or the increase in capital investment
As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfill which is to consistently create economic value for various constituents of society. This includes:
- Environmental friendly methods of production
- Giving employment opportunities to the disadvantaged sections of society
- Providing basic amenities like schools and crèches to employees
Organization consists of different types of individual who joins it to satisfy their diverse needs. The individual may seek to satisfy needs such as:
- Competitive salaries and perks
- Peer recognition
- personal growth and development
Management has to reconcile personal goals with organisational objectives for harmony in the organisation.
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