Management seeks to achieve certain objectives which are the desired result of any activities. They are derived from the basic purpose of the business. In any organization, there are different objectives and management has got to achieve all objectives in an efficient and efficient manner. Objectives can be classified into organizational objectives, social objectives, and personal or individual objectives.
Management is liable for setting and achieving objectives for the organization. It has to realize a spread of objectives altogether areas considering the interest of all stakeholders including, shareholders, employees, customers, and therefore the government. The main objectives of any organization should be to utilize human and material resources to the utmost possible advantages, i.e., to satisfy the economic objectives of a business. These are survival, profits, and growth.
Survival: The basic objectives of any business are survival. Management must strive to ensure the survival of the organization. In order to survive, a corporation must earn enough revenues to hide costs.
Profits: Mere survival is not enough for business. Management has got to make sure that the organization makes a profit. Profits provide vital incentives for the continued successful operation of the enterprises.
Growth: A business needs to add to its prospects in the long run, for its importance for the business to grow. To remain within the industry, management must exploit fully the expansion potential of the organization. The growth of a business can be measured in terms of sales and volume increased in the number of employees, the number of products or the increase in capital investment, etc. There are other indicators of growth.
It involves the creation of benefits for society. As a part of society, every organization whether it is business or non-business has social obligations to fulfill. This refers to consistently creating value for various constituents of society. This includes using environmentally friendly methods of production, giving employments opportunities to the disadvantaged sections of society, and providing basic amenities like schools and crèches to employees. The box given below illustrates how a corporation can fulfill its social responsibility.
Organizational is made up of people who have different personalities, backgrounds, experiences, and objectives. They all become part of the organization to satisfy their diverse needs. These vary their diverse needs such as competitive salaries and perks, social needs such as personal growth and development. Management has to reconcile personal goals with organizational objectives for harmony in the organization.