What Do You Mean By Objective In Business Management?
Every national human being must have certain clear-cut objectives or goals. A manager before performing the managerial function should ascertain the objective of the activities which he is going to manage.
Objective in Business Management constitutes a source of business which justify the activities of organisation and its existence. Thus, objective will check the members of devilaling from the route. They have set for themselves.
Objective means setting the goals of projected actions on the end point where we want to go.
Characteristic Of Objective In Business Management
Objective are multiple in nature
Objectives are needed in all areas of business on which its survival depends. There must be multiple objectives that should be laid down to achieve the major objectives. A manager always tries to achieve more than one objective for the organisation.
Objectives have hierarchy
The objectives form a hierarchy from top level to the lower level in the organisation. The objective of the lower level must serve as an objective of subordinates must contribute towards the objective of the superior.
Objectives may be long-range & short-range
The objective includes long range objectives such as survival and growth. It also includes short-range objectives such as maximisation of sales product development, effective utilisation of resources etc.
Objectives may be tangible & intangible
For the same of the objectives such as in the area of productivity market standing and financial standing. These are quantitative values considered as tangible objectives. There are other areas of objectives such as money performance, working morale etc are not available in quantity but are completely intangible.
Objectives are interdependent
The objectives of the organisation must be interdependent. They must be correlated with each other. The one objective of the organisation must support another one so that all the objectives can be realised. This interdependence should reduce the chances of conflict between different departments.
Types Of Objective In Business Management
For the sake of clarification there are some types of objectives discussed below.
Primary objective
These are the objectives for which a company has been started. Every business aims to earn more and more profit out of its working. Primary objectives are related to and not to individuals. Earning profit out of providing goods and services to the customers is the primary objective of a company earning goodwill and achieving the target of organisation.
Secondary Objective
These objectives help in achieving primary objectives. The targets are identification and effort are made to increase efficiency and economy in the performance of the work. The goals dealing with analysis, advice and interpretation provide support to goals directed by primary objectives. The primary goal of earning profit is only possible through providing goods and services to the market at a reasonable price.
Individual objective
These are the goals which individual members in an organisation try to achieve on a daily, weekly, monthly or yearly basis. The objectives are achieved as subordinate to primary and secondary goals. Most of the individual objectives are economics, physiological and non-financial rewards which an individual tries to achieve.
Social objective
These are the goals of an organisation towards society. This includes the obligation required by the communicates, government agencies etc. This also includes goals intended to further social, physical and cultural improvement to the society business has to produce goods and services by taking into consideration the health requirement of people. There are exceptions that business should also spend a part of its profits for the welfare of its community.
Advantages Of Objective In Business Management
Provide direction
The objective of an organisation always provides a clear cut direction to its subordinates or employees. It also helps to avoid any type of confusion anywhere in the organisation.
Provide motivation
The objectives of an organisation always motivates the employees to do their best. It facilitates binding the employees as a team and performing combinedly.
Facilitates Planning
The objectives provide basic for all types of planning, organisation, planning can’t be made without any objectives so the objective facilitates integrated planning by unifying various activities
Help in Control
The objectives facilitate checking the work of employees. The performance of subordinates is controlled by timely measurement of results and removing their difficulties quickly.
Improve Communication
Objectives provide a common framework within which policies, personnel, size of organisation can be defined discussed, communication is improved where objectives are set in advance.
Help to Management by Objective
Management By Objective is a result maintained management program process. It is the modern management techniques for an effective utilisation of the resources of an organisation. Therefore objectives are the basis of modern management philosophy.