Download - Buisness objectives
What are objectives?
• Well defined & clear direction to activities of an organisation / firm
• Broad statements of values which orgn aims at achieving
• Indicates destination towards which the business unit desires to move
• It rational human activity• Categorized differently • Base for further planning• Focal point
Definition of business objectives
• “Objectives are the ends towards which activities of any enterprise or department or project within it, are aimed.”
• “Objectives are the goals, aims or purposes that organizations wish to achieve over varying period of time.”
Characteristics/ features • Combination of plural/ multiply objectives• Lengthy & continuous process• Must easy & clear to understand• Challenging & creative• Concrete & specific • Measurable & flexible• Relates to specific time frame• Involves all management functions• Subject to obstacles/ constraints • Hierarchy of objectives- categorized or priority
basis • Future oriented –result oriented- growth , profit,
expansion
Importance / role / need of objectives in biz management
• Justify existence.• Facilitates planning• Define relationships with environment• Motives to achieve mission• Supports appropriate decision making• Standard of performance• Ensures participation & Build confidence of
employee• Bring uniformity in operations• Helps allocation of jobs
Organic / basic objective
• Survival
• Growth
• Recognition/ prestige/ Image
Economic Objectives
• Earn Profit
• Produce tangible wealth
• Identify customer- create customer
• Innovation
• Bring down cost
• Accelerate growth
• Ensure optimum utilization of resources
Social Objectives
• Offer satisfaction to consumers• Steady supply of goods• Reasonable returns on investment• Fair compensation & Good working conditions• Social responsibility-environment protection• Support employment• Ethical practices • Be good corporate citizen
Human objectives
• Right compensation pattern
• Good working environment
• Build job satisfaction & retention policies
• Career development programs
• Training & development opportunities
• Encourage labour participation practices
National objectives
• Bring growth to nation• Ethical practices • Social welfare & justices• Promote exports-earn foreign exch• Support country in being self-sufficient• Mass employment opportunity• Bring new technology• Encourage R&D
Steps in Formulating Business objectives
Consider environment factors↓
Consider resources of the enterprise↓
Consider individual dominance↓
Consider value system↓
Consider past objectives↓
Determine final objectives