Management attempts to accomplish specific objectives which are the solicited outcome of any action. They must be received from the fundamental view of the business. In any business, there are several objectives and the administration has to complete all objectives in an efficient and effective manner. Objectives can be categorised into organisational objectives, social objectives and personal or individual objectives.
Vital Objectives of Management:
- Organisational Objectives: Management is accountable for establishing and attaining objectives for the company. It has to deliver a variety of objectives in all operations contemplating the interest of all shareholders including, stakeholders, consumers, the government and employees. The principal objective of any company must be to use material and human resources to the maximum potential benefit, i.e., to meet the financial objectives of a firm. And, they are survival, profit and growth.
- Survival: The essential objectives of any industry is survival. Management must attempt to assure the continuation of the business. In order to survive, an industry must gain enough funds to meet the costs that would be incurred.
- Profit: Poor survival is not sufficient for the industry. Management has to make sure that the company earns the profit. Profit contributes to a necessary catalyst for the sustained successful performance of the firm. Profit is crucial for meeting the costs and uncertainties of the business concern.
- Growth: A firm requires to add to its chances, in the long run, for this it is necessary for the concern to develop. To prevail in the business, management must utilise adequately the growth potential of the firm.
Also Read: Class 12 Business Studies Syllabus
- Social objectives: It includes the establishment of benefit for the community. As a part of the community, every business whether it is a trade or non-trading concern has a social responsibility to meet. This applies to consistently generating financial value for many components of society. This includes using environmentally beneficial technologies of production, providing job opportunities to the disadvantaged sections of the community and furnishing the primary facilities like crèches and schools to employees.
- Personal Objectives: Establishments are made up of resources who possess different backgrounds, experiences, objectives and personalities. They all become part of the establishment to meet their several demands. These differ from economic necessities such as ambitious perks and salaries, social obligations such as equal attention and higher level demands such as individual growth and progress.
| 5-6 MARKS QUESTIONS | |
| Q1. AN ORGANISATION SETS DIFFERENT OBJECTIVES FOR ITSELF AND OTHER STAKEHOLDERS. EXPLAIN SUCH OBJECTIVES BRIEFLY. | |
| ANSWER:
AN ORGANISATION SETS AND ACHIEVES THE FOLLOWING OBJECTIVES: |
|
| (a)ORGANISATIONAL OR
ECONOMIC OBJECTIVES |
These objectives are classified as: (1)SURVIVAL:
Example: If Ram is running a shop and incurring a cost of Rs.50,000 per month then he has to collect minimum revenue of Rs.50,000 to cover all his costs otherwise his business won’t survive. (2)PROFIT:
Example: If the revenue of the shop is more than Rs.50,000, than Ram is earning a profit. The more the gap between the cost of production and revenue collected, the better the profit. It will help him in reducing business risk. (3)GROWTH:
Growth of an organisation can be measured by:
Example: Patanjali is growing as it is dealing in a variety of products and opening megastores in multiple cities. |
| (b) SOCIAL OBJECTIVES |
Some of the social objectives are:
|
|
(c) PERSONAL OR INDIVIDUAL OBJECTIVES |
Some of these objectives are:
|
| Q.2 M LTD. WAS MANUFACTURING HEATERS. IN THE FIRST YEAR OF ITS OPERATIONS, THE REVENUE EARNED BY THE COMPANY WAS JUST ADEQUATE TO MEET ITS COSTS. TO INCREASE THE REVENUE, THE COMPANY ANALYSED THE REASONS OF LESS REVENUE. AFTER ANALYSIS THE COMPANY DECIDED:
(I) TO LESSEN THE LABOUR COST BY MOVING THE MANUFACTURING UNIT TO A BACKWARD LOCALITY WHERE LABOUR WAS AVAILABLE AT A VERY LOW COST. (II) TO START MANUFACTURING SOLAR HEATERS AND REDUCE THE PRODUCTION OF ELECTRIC HEATERS SLOWLY. THIS WILL NOT ONLY HELP IN COVERING THE RISKS BUT ALSO HELP IN MEETING OTHER OBJECTIVES TOO. (A) RECOGNISEÂ AND EXPLAIN THE AIMS OF MANAGEMENT DISCUSSED ABOVE. (B) STATE ANY 2 VALUES WHICH THE COMPANY WANTED TO COMMUNICATE TO THE SOCIETY. (OUTSIDE DELHI 2014) |
|
| ANSWER: | |
| (A) OBJECTIVES OF MANAGEMENT |
These objectives are Survival, Profit and Growth of an organisation.
The organisations which care for society enjoy long term growth. Example: Using environment-friendly methods of production, generating employment opportunities etc., |
| (B) VALUES COMMUNICATED TO THE SOCIETY |
|
| 1 MARK QUESTIONS |
| Q.1 HOW DOES MANAGEMENT HELP IN ACHIEVING PERSONAL OBJECTIVES? STATE. (DELHI 2015) |
| ANSWER:
The management of any organisation achieves personal objectives of employees by focusing on and fulfilling the personal needs of the individual employees. |
| Q.2 LIST ANY TWO SOCIAL OBJECTIVES OF MANAGEMENT. |
| ANSWER:
Social Objectives of management:
|
The above mentioned is the concept, that is elucidated in detail about the Objectives of Management for the class 12 Commerce students. To know
The above mentioned is the concept, that is elucidated in detail about the Objectives of Management for the class 12 Commerce students. To know more, stay tuned to BYJU’S.
Comments