Objectives of management:
We hear the word ‘management’ a lot of times. Management is simply organizing things, people, and process into an orderly manner. With the increase in size of businesses, the need for management is becoming more important. Management is important for proper functioning of an organization or any business. Thus, management has certain objectives which need to be fulfilled so that there may be proper direction available in which the employees will work.
There are mainly three types of objectives of management which are as under:
Management helps in achieving the objectives but it-self has certain objectives and it includes organizational objectives which are at the level of an organization. They are based on the needs of stakeholders which include customers, shareholders, investors, government, employees etc. organizational objective is also called the economic objective of the firm because it helps in utilising the resources properly such as men, money, material and machinery.
Basic objectives of any firm are survival, growth and profitability.
First thing that comes in mind while setting up a business is the stability of the business in market. It should be stable enough to survive in market. To survive in this dynamic and ever changing market, businesses need to keep changing themselves. Many businesses fail because of various reasons which include no proper planning, no proper implementation, lack of coordination, not meeting the expectation of the stakeholders etc.
After survival, growth is important. It is very essential for an organization to keeping growing. It needs to improve the performance. For growing, it is very important to use the resources properly i.e. effectively and efficiently. Growth can be measured by comparing the performance with previous performance. If there is increase in sales, increase in profits, reduction in errors etc. then it can be considered growth.
Every business has an objective to get profits. It plays a very important role in success of the business. For covering the costs and providing improved products and services, it becomes important to get profits. When the business runs in profit, it acts as a motivation of the businessman to keep on improving the quality of its offering.
Every business runs in a dynamic environment. It cannot run in isolation. Every business takes the resources such as men, material and machinery for production, sales etc from the society. That is why; it becomes important for the business to pay back the society. Every organization has a social obligation to give back to the society. This includes creating better products, providing better services at a reasonable rate, production should be environmental friendly.
For fulfilling the social objective of the organization, it becomes important for the organization to have respect for each section of the society. There are various ways in which a business can return the favour to the society. It includes:
- Providing employment opportunities.
- Avoid pollution due to production.
- Doing philanthropic activities.
- Ensuring safety of workers.
- Indulge in fair trade.
Achieving the social objectives not only helps the firm in improving goodwill but also helps in increasing the revenues of the firm. The higher the satisfaction is amongst the employees, the lower turnover rate will be there. More amount of satisfaction amongst the customers, more there will be the promotion through word of mouth.
Businesses are doing great by building strategies that will positively affect the society. For example: TATA steel industries, India has always set up the examples of best corporate social responsibility (CSR). They had the started 1000 schools project which had the objective of improving the primary education in different areas of the country.
Personal or individual objectives are related to the employees of the organization. In an organization, every employee has different goals for themselves. They have different personality, objectives, experiences, backgrounds, thoughts, nature etc. Due to this uniqueness, every employee has different objectives and they include following:
- Basic need or physiological needs: getting a job, getting good working conditions are the basic needs of any employee.
- Safety needs: every employee then needs safety of job i.e. stability of job, proper salary, safety from harassment.
- Belonging or love needs: this includes friendship, peer recognition, value from boss, work – life balance.
- Self esteem needs: respect from others, competitive salaries, positive feedback.
- Self actualisation: getting promotion, reaching to the top ladder of the management, personal growth and development.
These individual or personal objectives should be in coordination with the organizational goal for better results and success of the organization.
While these are the ideal objectives of any business concern but there are other objectives as well. Getting maximum and better results every time while putting minimum efforts is also an important objective of the management. An organization also wants to increase its efficiency so that there is minimum wastage, spoilage, and breakage. It has a goal to avoid wastage of time, efforts and money while doing any activity. Meeting demand of the product or services, minimising the risk factor, getting the best talents in the firm, keeping the confidence, morale and motivation of the employees high are some other objectives of the firm.
There are several objectives of the firm. Fulfilling these goals and objectives is very important for the success of the organization. It becomes essential for the organization to fulfil the organizational objective of management, social objective of management and individual or personal objectives of employees of the organization. These objectives are derived from the basic purpose of the organization. After fulfilling these objectives, the organizational working improves, goodwill improves. It also helps in improving the harmony at the workplace.