Objectives of business

 

Success in business depends on proper formulation of its objectives. Objectives must be clear, and attainable.

Economic Objectives : Since business is essentially an economic activity, the primary focus of economic objectives is on three important constituents of the business system, namely:

(a) The owners

(b) The employees and

(c) The customers.

 

Human Objectives : Focus on human objectives is mainly on two constituents, namely, (a) employees and (b) customers, both of whom must have a feeling of having been treated as human beings by the business enterprise. Employees, in order to have a feeling of having been treated as human beings, look forward to a business enterprise for the following

objectives:

(i) They are treated as partners in the joint venture and not as inferior lot;

(ii) They are able to acquire and develop new abilities and skills in the process of employment; and

(iii) They derive job-satisfaction.

(iv) These help them to develop commitment to their work and in turn to the organization in which they are working.

 

Organisational Objectives : Business enterprises, from the point of view of its growth and stability, can be compared with the human anatomy. Just as human body grows through a number of stages, that is, from infancy to childhood, from childhood to adolescence, from adolescence to adulthood and from adulthood to maturity, a business enterprise also passes through such phases during its existence. In order that a business may grow through these stages in time and with strength, it is necessary that the business strives for (a) ploughing back a part of its profits so that it may acquire strength to grow and survive in the face of competition; and (b) attaining an optimum size of operations so that it could avail of the economies of the scale.

 

Social Objectives : These objectives of business can be put in two categories: (i) Micro level (i.e.,) immediate environmental objectives); and (ii) Macro level (i.e., national objectives ); Micro level social objectives. Under this category, this category, the business is expected help in the spread of literacy, education, training, medical care and public health, control of air and water pollution, development of backward classes and regions, and helping cultural, religious and charitable institutions engaged in the work of improving the lot of human beings.

 

Social Objectives:

Social objectives include providing employment opportunities, supply of quality goods and services at reasonable price, improving the standard of living and contributing to environmental protection. It also includes justice to workers in terms of wages, welfare amenities, improved service conditions and

 

 

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