The objectives of management can be studied under the following heads: 1. Organisational Objectives 2. Social Objectives 3. Personal Objectives.
Some of the objectives of management are: 1. Survival 2. Profit 3. Growth 4. Quality Products 5. Optimum Utilisation of Resources 6. Discipline and Morale 7. Improving Performance 8. Innovation
9. Development of People 10. Minimise the Element of Risk 11. Getting Maximum Results with Minimum Efforts 12. Human Betterment and Social Justice 13. Maximum Prosperity for Employer and Employees
14. Increasing the Efficiency of Factors of Production and a Few Others.
Objectives of Management: Organisational, Social and Personal Objectives
Objectives of Management – For Successful Survival and Growth of an Enterprise
Each organisation has its own set of objectives and goals. Every business activity in the organisation is designed in a manner that it accomplishes the predetermined goals. It is the role of the management to see that all activities are carried out in the most effective manner and the desired results are achieved.
For successful survival and growth of an enterprise, management has to achieve all objectives may it be:
3. Personal or individual.
1. Organisational/Economic Objectives:
The management of an organisation is primarily responsible to set objectives and direct its work force to achieve them. Any business is successful if each of its stakeholders, be it shareholders, employees, customers, government or suppliers, is happy and satisfied while working with the organisation. To achieve this, organisation must fulfill the economic objectives of survival, profit and growth.
To achieve the objective of survival, management must ensure that sufficient revenues are earned and the basic costs of running the business are met. This can be achieved only if the human and material resources are effectively used.
Just survival may keep all stakeholders satisfied but not the shareholders. Profit is the reward and incentive for shareholders to continue the operations of the enterprise. Thus, it is a must for management to ensure that business not only covers its tangible costs but also the risks involved by utilizing human and material resources effectively and efficiently.
A business may survive by offering products at aggressive and competitive prices, may earn profits by reducing its costs but it has to make continuous efforts to increase its market share to remain in the industry for long. It is the role of the management to ensure that it exploits not only its internal resources to the fullest but also understand changing market demands, makes timely changes in its strategies, product line etc. to retain its existing customers and develop new markets.
A business is said to be growing if its sales turnover increases, the product portfolio widens, number of employees grow and investments are done. Growth is the yardstick of success of a business.
Social objectives of management involve creating economic values for the society.
Business enterprises can contribute towards the society by:
i. Creating equal employment opportunities for the differently-abled section of society,
ii. Using such production techniques which keep environment pollution free,
iii. Diverting share of profits towards social causes like spreading education, running welfare programs for women, children or senior citizens etc.
(i) Shiv Nadar University and Shiv Nadar School run by HCL are part of HCL’s social objectives.
(ii) Most schools reserve seats for economically poorer section of society to provide equal opportunities of education to such children.
Every business enterprise works as a team consisting of individuals. These individuals come from different cultures and backgrounds and thus have diverse needs and aspirations.
For a satisfied and happy workforce, management must ensure that:
i. The financial needs of employees are met by providing competitive salaries, perks and facilities
ii. The social needs of employees are met by recognizing contribution of each individual
iii. The developmental needs of employees are met by providing appropriate growth and development opportunities so that the organisation can achieve maximum productivity from its work force.
Example – Today most organisations give competitive salaries, provide recreational facilities for staff, hold annual meets where they recognize the contribution of their employees, provide creche facilities so that women employees can work comfortably. Also many times companies try to fill in vacancies internally by providing opportunities to its own staff. Such activities enable management to not only keep its staff happy and satisfied but also retain its good employees for long.
Objectives of Management – Organisational, Social and Personal Objectives
Management is creating the internal environment of an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals.
Various objectives of management are:
a. Organisational/Economic Objectives:
(i) Survival – It is the basic objective of any business and an organisation must earn sufficient revenues to recover cost.
(ii) Profit – Mere survival is not enough. Management has to ensure that the organisation makes profit as it is an incentive for the continued successful operations of the business.
(iii) Growth – Every business needs to add to its prospects in the long run. For this, it is important for the business to grow. For this, management must fully exploit the growth potential of the organisation.
b. Social Objectives:
(i) Customer satisfaction by providing quality products and good services.
(ii) Human betterment and social justice through social and physical improvement of the community and to contribute to desirable civic activities.
(iii) Providing economic wealth, needed employment and financial support to the community.
(iv) Preservation and protection of environment by selecting those techniques and methods of production which involves lesser pollution and are in national interest by making better and efficient utilization of scarce resources and generating more employment opportunities.
c. Individual/Personal Objectives:
(i) Maximum prosperity for employees by providing competitive salary, personal growth and development, peer recognition and societal recognition.
(ii) Providing good working conditions, better standard of living and good human relations amongst the workers.
(iii) Integration of personnel objectives with corporate objectives.
Objectives of Management – 10 Main Objectives
The primary objective of management is to run the organisation smoothly. It should keep in mind the profit earning objective of a business while undertaking various functions.
Management has the following objectives:
1. To organise the effective carrying out of work,
2. To organise the expert personnel for work,
3. To utilise all the resources economically,
4. To assess and evaluate the performance of work periodically,
5. To improve the performance of each and every factor of production,
6. To draft policies for promoting industrial peace,
7. To provide for expansion of business,
8. To prepare plans for future development,
9. To promote economic development, and
10. To maintain a proper environment to attract specialists in various fields.
Objectives of Management
The objectives of management specify the goal towards which management aims, whereas policies provide guidelines which help attain that goal. The top management of successful enterprises defines the company’s objectives so that the management knows what the company stands for and the goals it has to achieve. A clear definition of the scope, responsibility and authority within which the company has to operate is a must.
Based on the framework of corporate objectives, departmental policy manuals are drawn which likewise define and elucidate departmental functions to help achieve the corporate objectives of the company. Drawing up of or laying down of corporate objectives appears simple, but is a very difficult task in actual practice. It requires long deliberations at the top management level to clear the concepts before they can be defined and projected.
The said company operates large integrated steel plants in the country and being a government undertaking, is morally bound to the national goal of ensuring rapid economic growth through efficient production and supply of high quality iron, steel and allied products at reasonable rates.
The objectives of the company stem from the following major premises:
1. As a public sector undertaking accountable to the people of India, the company will strive to maintain a sense of national interest in discharging its responsibilities and will constantly seek to deserve and enjoy the highest measure of public trust and esteem.
2. In conducting its business with honesty and integrity, the company will also endeavour to function as a profitable enterprise striving towards the achievement of a self-reliant and self-generating economy.
3. The company will operate in the highly specialised fields of iron and steel manufacture, and pioneer in the new fields of applied science through the pooling of the best scientific and engineering talent in an environment which will facilitate the proper utilisation of their knowledge, interest and skill.
4. The operations of the company will be led by a management group which will enjoy the respect of the whole organisation for its ability, integrity, fairness and human approach to problems.
5. As a high rate of economic growth sustained over a long period is the essential prerequisite for achieving a higher standard of living for the people, the company will seek to increase investment in basic production capacities and economic and social overheads, within the limits of resources it can generate, so as to yield benefits now and in the future.
6. The company will ensure good corporate health by adopting sound management practices, including the establishment and maintenance of a dynamic organisational structure suited to meet present and future company needs; long-range planning; product diversification; strong financial control and comprehensive research, development, engineering and consultancy services.
I. Towards the People of India:
1. As an autonomous body, the company will be accountable to the people of India through the Parliament and the government, for running a highly competent, business-minded, technically-oriented enterprise, engaging in manufacture/ research and development to meet the needs of the country as well as the world markets for iron, steel and allied products.
2. The company will endeavour to earn a fair return on investments, maximise production, institute adequate cost control, so managed as to inspire confidence and a sense of pride in the minds of the people.
II. Towards Employees:
The company will seek to be a model employer by:
1. Attracting competent personnel with growth potential and by developing their maximum capabilities in a working environment through the provision of opportunities for advancement and incentives;
2. Developing and sustaining a favourable employee attitude and obtaining maximum contribution of employees through stable employment; providing adequate wages commensurate with the company’s capacity to pay, good and safe working conditions, and job satisfaction;
3. Establishing a system for redressal of employees’ grievances in the shortest possible time with the smallest possible step;
4. Providing training facilities and other opportunities for self-development in their current jobs as well as for further advancement;
5. Fostering fellowship and a sense of belonging to the company by means of closer association of employees with management; by way of participation in various joint bodies and, through this machinery, inculcating in them respect for their occupation and the tools of production;
6. Dealing fairly with recognised representatives of the workers, and encouraging in them healthy trade union practices.
III. Towards Customers:
The company will serve its customers by:
1. Providing prompt, courteous, dependable and competitive services;
2. Selling products of the right quality at prices determined by the best interests of the nation; and
3. Establishing confidence in the customers that it will supply the required products and services backed by modern production and research facilities manned by the most competent men available.
IV. Towards Suppliers:
The company recognises the important role of its suppliers in providing various materials and services for its operations by-
1. Ensuring prompt dealings based on integrity, impartiality and courtesy; making available to them the benefits of research, skills and information in order to promote indigenous growth, reduce drain on foreign exchange and improve the quality of indigenous products and services.
V. Towards Community:
The company accepts its social obligations to the community in which it operates by:
1. Promoting the concept of national integration in the broadest sense; by providing community services, developing and assisting democratic institutions and generally ensuring that the company, as a whole, and its employees act on the ideals of social justice without discrimination;
2. Providing know-how and assistance, and encouraging talent and growth among members of the community by establishing cooperative institutions.
The company endeavours to be one of the most enlightened, progressive and efficient producers of iron and steel and allied products in India and abroad, by making the most effective use of capital, personnel and management skills.
While it is important to set the goals in as detailed and specific a manner as possible, it would be wrong to assume that corporate objectives will be all-inclusive and do the job alone. The respective departments of the company have to have their own policy manuals further elucidating the action to be taken by them to help achieve the overall objectives.
For example, if the top management declares in its corporate objectives that, wherever practicable, the deliveries of the items have to be made on the stipulated dates and that no extension of dates would generally be granted, the production planning and control department, in that case, has to study each order in detail and give a delivery schedule only after a very careful study of the various factors involved.
The production planning and control department will then be obliged to set up a system of follow-up and corrective action to meet this requirement. The system is to be so designed and controlled for reliability as to see that this objective is honoured.
Large companies often employ systems and procedures managers who help the departmental heads in preparing policy manuals for their departments. Depending on the circumstances/ such as political changes/ change of government/ board of directors controlling the company, declaration of war, declaration of national emergency, etc., the objectives of a company may undergo changes or show signs of changes or drifts.
The top executives should keep themselves up-to-date in this respect but use their discretion and judgement in communicating a part or the whole of this change down the line to specified positions in the hierarchy.
Objectives of Management – 7 Key Objectives
All or any organisation will have certain sets of values that it hopes to achieve. The higher the values set by the management, while each succeeding level of management sets out to break these objectives down into achievable goals.
These values could be represented by all or any of the below given objectives set in clearer terms:
1. Optimum utilisation of organisational resources – The efficiency of any management is reflected in its optimum utilisation of available resources so that the costs can be progressively reduced and profitability increased.
2. Profitability – This is the basic objective and purpose of business. Naturally, it becomes the basic objective of any management. All activities of the management have their sights on this basic goal.
3. Improve quality of work – The saleability and subsequent profitability depends on the quality of manufactured product. Good workmanship and quality creates avenues for revenue. Greater the revenue, greater the profitability and by extension, more efficient the management.
4. Well developed and trained workforce – Every management seeks to train and develop its workforce so that production efficiency remains optimised. A motivated work force, capable of delivering beyond what is required is the dream goal of every management.
5. Positive company image – This is an important objective of the management which seeks to develop a positive corporate image that will help gain loyalty and goodwill in the market and society.
6. Reducing cost of production – More the management succeeds in reducing the cost of production, greater will be the resultant profit for the company. This is an important goal of the management.
7. Sound decision-making – Sound decision making lies at the very heart of success. Good decision making is what every management seeks and works towards. This ensures efficiency and better control.
Objectives of Management – 8 Main Objectives
The main objectives of management are:
(i) Growth and Development – Management must ensure that the business organisation earns sufficient profits for the growth and development of the business. By proper planning, organisation and direction, etc., management leads a business to growth and development. It provides a sense of security among the owners and employees of the business organisation.
(ii) Quality Products – The aim of a sound management has always been to produce better quality products at the minimum cost. The aim of the management is to remove all the wastages and produce goods at the minimum cost.
(iii) Optimum utilisation of resources – The objective of the management is to use various resources of the enterprise in a most economical way. The proper use of men, materials, machines, and money will help a business to earn sufficient profits for the growth of the business organisation.
(iv) Discipline and morale – Management maintains discipline and boosts the morale of the employees by giving them authority, responsibility, delegation of authority, etc. It motivates the employees through monetary and non-monetary incentives. It helps in creating and maintaining better work environment.
(v) Improving performance – Management should aim at improving the performance of each and every factor of production. Performance can be improved only when every factor of production is performing well.
(vi) Innovation – Management undertakes research and development to take lead over, its competitors and meet the uncertainties of the future. Management should work on technological and other innovations to cope with the changing environment. For the development of better methods, continuous research and development is essential.
(vii) Development of People – Management should work for its people so as to ensure success. Well motivated people perform in a better way and help in achieving the organisational goals. Management should take initiative for the development of skills of its employees. Also, proper training should be imparted to develop their talent.
(viii) Minimise the element of risk – Future can never be predicted with complete accuracy. Yet, on the basis of previous experience and existing circumstances, management can minimise the element of risk. Management should focus on preparing best forecast so that risk of uncertainties can be minimised.
Objectives of Management
The main objectives of management:
(i) To increasing organizational effectiveness.
(ii) To achieve optimum utilization of various resources.
(iii) To have co-ordination between various department in the organization.
(iv) To have smooth functioning of the organisation.
(v) To work for the betterment of the society.
(vi) To reduces the execution time for various activities of the organization.
(vii) To control the quality of workmanship and provide good working conditions.
(viii) To manage and control economy execution.
Objectives of Management
The main objectives of management are:
1. Getting Maximum Results with Minimum Efforts:
Management is basically concerned with thinking and utilizing human, material and financial resources in such a manner that would result in best combination. This combination results in reduction of various costs.
2. Human Betterment and Social Justice:
Management serves as a tool for the upliftment as well as betterment of the society. Through increased productivity and employment, management ensures better standards of living for the society. It provides justice through its uniform policies.
3. Maximum Prosperity for Employer and Employees:
Management ensures smooth and coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the employee in the shape of good working condition, suitable wage system, incentive plans on the one hand and higher profits to the employer on the other hand.
4. Increasing the Efficiency of Factors of Production:
Through proper utilization of various factors of production, their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort and money which is essential for the growth and prosperity of the enterprise.
Objectives of Management: Organisational, Social and Personal Objectives
Management in a universal continuous process by which all resources (Human and Non-human) of the organisation are utilised for the achievements of certain objectives which are as follows –
1. Organisational Objectives:
The basic objective of management must be secure maximum results with minimum efforts by effective utilisation of resources.
The other are:
(a) Reasonable profit after taxes;
(b) Practical reduction in time, money and wastage;
(c) Growth and expansion of the organisation;
(d) Maintain healthy relationship between employees and employers.
(e) Maintain and increase prestige of the organisation; and
(f) Contribute to national goals.
2. Social Objectives:
Organisation is a part of society.
It is expected to fulfil the objectives of the society which are as follows:
(a) Customer satisfaction through product quality and service;
(b) Fair product price to the customers;
(c) Fair dealing with customers, suppliers, dealers and competitors;
(d) Generation of employment opportunities;
(e) Payment of taxes to the government; and
(f) Ensure social welfare.
3. Personal Objectives:
Management must strive for ensuring maximum prosperity for both employers and employees.
The other objective are:
(a) Fair proper and timely remuneration to the employees;
(b) Proper working conditions at work place;
(c) Effective and efficient workplace.
(d) Long term job security;
(e) Systematic training and development opportunities to all concerned; arid
(f) Job satisfaction to employees.
Objectives of Management – 10 Important Objectives
The following are the main objectives of management:
i. Getting maximum results through minimum effort – It is the general objective of every management to secure maximum results through minimum effort and resources. The optimum use of men, materials, machines, and money will give maximum returns.
ii. Proper utilization of resources – Every management aims at utilizing the factors of production properly. Management must increase the productivity of the enterprise by securing best utilization of its available human and non-human resources. As a result, productivity of resources is increased and wastage of resources is reduced.
iii. Establishing a sound organization – Management establishes a sound organization by dividing the functions among the managers. It coordinates the activities of different managers so that their united effort could achieve the objective of the enterprise. It also establishes a clear-cut authority-responsibility relationship among the positions held by people.
iv. Helpful in achieving predetermined objectives – Management provides a dynamic force in helping any enterprise to achieve its objectives. It leads an enterprise towards growth and prosperity by proper planning, organizing, directing, etc.
v. Securing maximum prosperity for employers and employees – Management secures maximum prosperity for employers by earning high profits at minimum costs. It also secures maximum prosperity for employees by providing adequate remuneration and other benefits for their services.
vi. Improving productivity and efficiency of the labour force – Management creates a favourable environment where workers can increase their productivity and efficiency. It always considers labour force more important than other things. It brings about development of human talent by encouraging initiative, skill, and technical competence.
vii. Improving discipline and morale – Management introduces discipline in the conduct of group of individuals through exercise of authority, assignment of responsibility, and employing procedures of evaluation and control. It motivates people and ensures high morale by providing various monetary and non-monetary incentives to them.
viii. Rightful decision-making – Rational management takes right decisions on all matters at the right time. By taking the right decision, it can remove all problems and can run the business on the right track. Management as an all-pervasive process should make the right approach towards decision-making.
ix. Better life for human beings – Management ensures a better life for human beings by increasing productivity and employment. It improves the standard of living of the workers by increasing their productivity and earnings. It also improves the standard of living of the consumers by producing new varieties of products and thereby creating new tastes, fashions, etc. Therefore, it provides justice for all.
x. Innovation and expansion – Management creates conditions for expansion and development of the business. Innovation of the new production technique and technology makes business dynamic. It provides new ideas, imagination, and vision to the organization.
Objectives are those end points (targets) for the achievement of which various activities are aligned together in a company. For example- it can be an objective of a company to earn 20% profit on investment. Now, by taking this objective into consideration all the divisional activities will be ascertained like: Marketing department will have to ascertain the sale price of the goods at which the targeted objective can be achieved.
Production department will reckon the volume of production for the fulfillment of this
objective. Finance department will arrange for the needed finance in most economical manner. Likewise, in this manner, activities of all the divisions will be fixed in order to earn 20% profit on investment. Not only this, but objectives related to the contribution of a company in social development and the expectation of every employee from the company are also ascertained.
Objectives of management can be broadly divided into the following three categories:
(1) Organisational Objectives
(2) Social Objectives
(3) Personal or Individual Objectives.
(1) Organisational Objectives:
It refers to ascertain objectives for the whole organisation. While fixing these objectives, management keeps into consideration benefit of all related parties (like owner, employee, customer, government, etc.). To give benefit to all the interested parties of business, optimum utilisation of available resources (human and physical) is made possible.
This also fulfill organisational economic objective which are:
Every business wants to survive for long. So, management by taking positive decisions with regard to different business activities should ensure that business survives for long.
Profit plays an important role in facing business hazards and successful running of business activities. So, it must be ensured that adequate profit is earned by the business.
Every business wants to grow. Management must ensure growth of business. Growth can be measured by sales, number of employees, products, capital investment, etc. If all these show increasing trend then it can be concluded that business is heading towards growth.
(2) Social Objectives:
It refers to the consideration of the interest of the society during managerial activities. An organisation is established in a society. It runs through the resources made available by the society. That is why it becomes the responsibility of every organisation to account for social benefits. Thus, social objectives are defined as the fulfillment of responsibility of an organisation towards society. Under this objective manager promises to assure health, safety and price control.
Main social objectives of management are included in the following list:
(i) To make available employment opportunities.
(ii) To save environment from getting polluted.
(iii) To contribute in improving living standard.
(iv) To participate in building charitable trusts, dispensaries, educational institutions, etc.
(v) To make available good quality products at a reasonable price.
(vi) Not to support or indulge vulgar advertisements.
(vii) Not to get involved in product adulteration.
Asian Paints has provided funds under its community development programme, which made possible the effective utilisation of local resources by the farmers. In the same manner, Steel Authority of India regularly provides services related to agriculture, industry, education, health, etc. to the people living nearby to its steel plant.
(3) Personal or Individual Objectives:
It refers to ascertainment of the objectives in reference to the employees. Employee class is an initiative and empathetic resource of a company. Thus, special attention needs to be given towards its feelings. If the company is able to satisfy its employees it will be able to progress in ‘leaps and bounds’.
While ascertaining individual objectives care must be taken that in no way there is a clash between organisational and individual objectives. For example: if organisational objective is to earn maximum profit and individual objective is to give minimum possible remuneration, then clash is inevitable.
Thus, a balance needs to be established between both the objectives. In this reference, it can be said that a balanced objective has to be set, if the objective of earning maximum profit has been targeted in harmony with the total satisfaction of employees.
Main objectives of management towards employees are as follows:
(i) To give deserving remuneration.
(ii) To provide good working environment.
(iii) To provide a share in profit.
(iv) To provide job security.
(v) To provide participation in management.
(vi) To impart training.
(vii) To provide opportunities for promotion and development.