Business Objectives - Meaning
Business objectives are the goals, aims or piece of job of the business. The trouble organisation tries to accomplish these goals. Profit is the principal objective of business. However, the trouble organisation cannot accept alone 1 objective. This is because it has to satisfy dissimilar groups such equally shareholders, employees, customers, creditors, etc. So, it has to gear upwards objectives for each group.
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Types of Business Objectives
There are 5 types of trouble organisation objectives, viz.,
- Economic Objectives,
- Social Objectives,
- Organic Objectives,
- Human Objectives, and
- National Objectives
These types of trouble organisation objectives are depicted inwards the next picture.
Objective gives management to the business. It motivates the owners, managers together with employees to piece of job hard. It helps inwards planning together with decision-making. It is used to evaluate (measure) the functioning of the employees.
Definition of Objectives
According to Louis Allen,
"Objectives are goals established to guide the efforts of the companionship together with each of its components."
According to Dalton E. McFarland,
"Objectives are the goals, aims or purposes that organisation wishing to accomplish over varying menstruation of time."
Nature Characteristics of Business Objectives
The features or characteristics of trouble organisation objectives are depicted below.
1. Multiplicity of Objectives
Business objectives are multiple inwards character. That is, a trouble organisation does non accept alone 1 objective. It has many or multiple objectives. This is because a trouble organisation has to satisfy dissimilar groups, i.e. shareholders, employees, customers, creditors, vendors, society, etc. The trouble organisation has to gear upwards dissimilar objectives for each group.
2. Hierarchy of Objectives
Hierarchy way to write downwards the objectives according to their importance. The almost of import objective is written first, together with the to the lowest degree of import objective is written last. All objectives are important. However, around objectives are to a greater extent than of import than others. Some objectives ask immediate activity spell others tin live kept aside for around time.
3. Periodicity of Objectives
Based on period, trouble organisation objectives tin live classified into 2 types, viz.,
- Short-term objectives, and
- Long-term objectives.
The short-term objectives are made for a short-period, i.e. maximum 1 year. Short-term objectives are to a greater extent than specific.
The long-term objectives are made for a long-period, i.e. for 5 years or more. Long-term objectives are to a greater extent than general. They are similar a Master Plan.
4. Flexibility of Objectives
The trouble organisation is flexible. Therefore, the trouble organisation objectives must equally good live flexible. If the objectives are rigid, the trouble organisation volition non survive. This is because the trouble organisation surroundings keeps on changing. There are continuous changes inwards the technical, social, economical together with political environment. The trouble organisation has to alter its objectives according to the changes inwards the trouble organisation environment. The hierarchy of objectives must equally good live changed from fourth dimension to time.
5. Qualitative together with Quantitative Objectives
There are 2 types of objectives, viz., Quantitative together with Qualitative objectives.
- Quantitative objectives are slowly to measure. It is expressed inwards numbers. For e.g. inwards Dollars, Rupees, Percentage, etc. Quantitative objectives are visible, tangible together with countable.
- Qualitative objectives are non slowly to measure. It is non expressed inwards numbers. For e.g. Employee performance, employee satisfaction, etc. These objectives cannot live measured. Qualitative objectives are invisible, intangible together with uncountable.
Today modern methods are used to mensurate qualitative objectives. Influenza A virus subtype H5N1 trouble organisation must accept both quantitative together with qualitative objectives.
6. Measurability of Objectives
The objectives must live clear together with specific. It must live slowly to measure. For e.g. Each salesman must sell 100 units of H2O purifier per month. This is a clear together with specific objective. It is slowly to mensurate the functioning of the salesman. If a salesman sells 200 units of H2O purifier inwards a calendar month thus his functioning is good. He tin live given bonus together with promotion. However, if a salesman sells alone 10 units of H2O purifier inwards a calendar month thus his functioning is bad. He needs to a greater extent than training. Measurable objectives motivate the employees to piece of job hard. This is because they know their target clearly. Their functioning tin equally good live measured easily.
7. Network of Objectives
Network way an interconnection betwixt dissimilar objectives. Influenza A virus subtype H5N1 trouble organisation has many dissimilar objectives, viz., corporate objectives, departmental objectives, sectional objectives together with private objectives. It equally good has objectives for shareholders, customers, employees, etc. All these objectives must live interconnected. They must back upwards each other. They must non clash alongside each other. They must displace inwards the same direction. If not, the trouble organisation volition non survive. Similarly, the objectives of all the departments, must back upwards each other. They must non clash or conflict volition each other.
