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.
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.