Management is one of the most pivotal parts of an organisation. It is not a single activity but a series of activities comprising planning, organising, staffing, directing, and controlling. All these activities are directed towards achieving the objectives. All activities of management lead to the achievement of certain goals.
Therefore, successful managers should know how to convert managerial activities into results. The objectives of management can be broadly classified into three parts:
Organisational objectives
Social objectives
Personal objectives
Let’s discuss these objectives in detail.
Organisational Objectives
Organisational objectives are those designed to achieve the organisation’s objectives. These objectives are based on some specific mission of the organisation.
The main organisational objectives are as follows:
1. Survival: The very first objective of management is to survive. It means that the business should earn profit at least equal to its cost of capital. For this purpose, management has to ensure that all activities are done efficiently to produce goods and services according to the needs and requirements of the consumers and society.
2. Growth: Every business wants to grow because growth means increased sales, increased profits, market share, increased demand, etc. Therefore, management has to plan for growth and make sure that all activities are carried out in such a way that targets can be easily achieved.
3. Profit: The finance manager may try to maximise the firm’s profits by selecting projects that have higher profit returns than their respective costs. He/she should also promptly ensure that loss-making projects are discontinued to minimise losses.
Social Objectives
Social objectives are related to the society at large; these objectives are an integral part of any business. A business cannot thrive in isolation from society; it needs support from the society and vice versa is also true. Some social objectives are as follows:
1. To provide employment opportunities to people
2. To produce quality goods and services that fulfil customer requirements.
3. To pay taxes on time to the government so that the government can provide better facilities to the society.
4. To provide a safe working environment with strict safety measures for its employees to work without fear and anxiety.
5. To maintain good relations with labour unions so that there is no labour unrest in the organisation and work continues without any interruption.
6. To develop good public relations activities so that public image is enhanced and goodwill is created among people.
Personal Objectives
Management has to fulfil the personal objectives of different members working in an organisation like employees, owners, top-level managers, board of directors, etc.
All these individuals have different needs and desires, which management should fulfil to achieve organisational goals.
An organisation can achieve personal objectives by providing
Better pay packages
Better working conditions
Recognition and appreciation
Now that we have gained detailed knowledge of the three objectives of management, let us get into the two main objectives that any organisation needs to take care of while competing in a market.
Survival and Profit
Survival
All organisations are established and built with a common objective, that is, survival. No organisation can be expected to survive if they do not earn sufficient revenues and profit.
Innovation is the driving force behind the survival of any organisation, without which it isn’t easy to sustain in the market. Innovation occurs when people gain new knowledge and insights, try something different and adopt new ideas that make them think differently, look differently, and act differently than others. The organisation should always encourage its employees to be agents of innovation by providing a supportive and encouraging environment to put their creative abilities to productive use.
Organisations that survive and grow understand that survival is just the beginning, and there is always a need to grow further. It must be noted that an organisation that does not grow dies in this context.
Profit
The main objective of financial management is to earn maximum profits. Maximum profits mean earning more than the average profits earned by other firms in the same industry. The finance manager shall try to achieve as high as possible profits from both short-term and long-term business courses.
Profit is indicative of how well management is running the business. It’s a key performance measure and can be used in comparing companies and industries. The higher the profit for a given period, the better it indicates that management has performed its function.
Conclusion
Objectives are the most important feature in any business. Business objectives are the aims, goals, and performance indicators of a company. Objectives must be clear and set for the future so that a company can develop ahead of its competitors. No business can be successful and flourish if the management fails to understand the importance of the objectives and then neglects them. If a person is to run a business successfully, they should have a clear vision of business objectives. The objectives should be realistic and achievable. Managers must consider it an opportunity to achieve progress and objectives organisationally, socially, and individually.
