Objectives of Management

Objectives are the ends towards which the activities of an organisation are directed. The managerial objectives of an organisation can be classified into three major categories:

1. Organisational objectives
2. Social objectives
3. Personal  objectives

1) - Organisational Objectives: Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders.  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.  These are survival, profit and growth. These objectives aim at prosperity and growth of the organisation. Generally it is assumed that profit maximisation is the main objective of every organisation but it is not true. The managers try to develop and attain variety of objectives in all management areas.
   

Survival: The basic objectives of any business is survival  and to exist in the competitive market for a long period of time and it is possible only when it is able to cover its cost. Management must strive to ensure the survival of the organisation. In order to survive, an organization must earn enough revenues to cover costs.

Profit: Mere survival is not enough for business. The most important objective of every organisation is earning adequate amount of profit. Management has to ensure that the organization makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for covering costs and risks of the business. Profit is essential for survival, growth and expansion of business. Profit is the reward given to businessman for bearing risk.

Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. To remain in the industry, management must fully exploit the growth potential of the organisation. Business organisation must grow and expand their activities.The success of any organisation is measured by the growth rate and growth is measured in terms of sales, number of branches, number of products, number of employees, etc.

2)- Social objectives: It involves the creation of benefit for society. As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfill. This refers to consistently creating economic value for various constituents of society. This includes using environmental friendly methods of production, giving employment opportunities to the disadvantaged sections of society and providing basic amenities like schools to employees. Social objectives of the organisations deal with the commitment of the organisation towards the society. Business organisations are the part of society. They earn by using the resources of society so they must do something for society also.                          

The major social objectives of organisations are:

• Supply of quality products at reasonable prices.
• Contribution towards desirable civic activities.
• Generation of economic wealth.
• Generation of employment opportunities.
• Financial support to community.
• Organising educational, health and vocational training programs.
• Participating actively in social service projects of Government and NGOs.
• Using environmental friendly methods of productions.
• Providing employment opportunities to weaker section of society.

3)- Personal objectives/Human Objectives/Individual Objectives: Individual objectives are related to the employees of the organisation. As employees are most important resources of every company and satisfied and motivated employees contribute maximum for the organisations. Hence, organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs such as personal  growth and development. Management has to reconcile personal goals with organizational objectives for harmony in the organisation.
          The main individual objectives of management are:

• Competitive salary to fulfill financial needs of employees.
• Promotion, training, personal growth and development of employees to fulfill esteem and other higher level needs of employees.
• Good and healthy working conditions for safety of employees.
• Peer recognition, self respect, respect for colleague to fulfill social need.
• Workers may loose interest in work if their objectives are neglected. Management must try to integrate the personal objectives with the organisational objectives.

Objectives of Management