Objectives are the goals towards the achievement of which every component of the company works. The objectives also become the yardstick for the measurement of the efficiency of the organization.
The managerial goals may be classified into the following categories:
1. Organisational objectives
2. Social Objectives
3. Individual Objectives
1. Organisational Objectives.
Organizational objectives aim at the growth and prosperity of the business. It is generally said that profit maximization is the only objective of a business but this is not correct. Every management aims to achieve a number of objectives that help it in reducing cost, increasing efficiency, and bringing profitability and prosperity to the organization.
The organizational objectives may be described as follows :
(i) Survival. Every organization will first aim to survive in the market in the face of competition. It should try to cover costs and earn a reasonable profit for survival.
(ii) Growth. Every organization tries to grow and expand its activities. The growth may be measured by the increase in the volume of sales, the number of branches, the addition of new products, an increase in the number of employees, an increase in profit, etc.
(iii) Profitability. Profit is the reward for risk-bearing by a businessman. Profit is also essential for survival, growth, and expansion. Profit maximization should not be at the cost of consumer exploitation. Reasonable profits should always be aimed at by an organization.
2. Social Objectives.
Social objectives deal with the commitment of a business towards society. A business uses the resources of society and earns profits out of it. It is the duty of business to contribute to the welfare of society.
The main social objectives are :
(i) Supply of quality goods at reasonable prices.
(ii) Generation of economic wealth.
(iii) Creating empl9yement opportunities for people.
(iv) Financial support to the community.
(v) Contribution towards civil amenities.
(vi) Organising educational, health, and vocational training programs for people.
(vii) Using environmentally friendly methods of production.
(viii) Participating in social welfare activities of the government and NGOs.
3. Personal Objectives/Individual Objectives/Human objectives. Individual or personal objectives are related to the employees of the organization. the employees are the most important resources of every company. Motivated and satisfied employees will always perform better and contribute the maximum for the organization.
The main objectives of employees are :
(i) Competitive salaries.
(ii) Avenues for personal development(Promotions, incentives, training, etc.)
(iii) Personal recognition (self respect and recognition by management)
(iv) Social recognition.
(v) Better and healthy working conditions.
Workers will take more interest in work if their personal objectives are taken care of by the management. Management should integrate the personal/individual objectives of employees with organizational objectives.
