Objectives of Business Organisation
Objectives of Business Organization
Business organizations have a multifaceted set of objectives that can be broadly categorized into economic, social, human, national, and global objectives. These objectives ensure that businesses not only thrive economically but also contribute positively to society and the nation as a whole.
A. Economic Objectives
Economic objectives are centered around profit generation and efficient resource utilization, essential for the sustainability and growth of the business.
1. Profit Earning: Profit is crucial for business survival and growth. It enables businesses to reinvest in their operations, expand activities, and ensure long-term sustainability. Without profit, a business cannot thrive in a competitive market.
2. Creation of Customers: Businesses must attract and retain customers by providing quality goods and services at reasonable prices. Marketing activities are essential in creating a loyal customer base, which is fundamental for continuous profit generation.
3. Regular Innovations: Innovation leads to improvements in products and processes, reducing costs and increasing sales. Regular innovation helps businesses stay competitive and meet changing consumer demands.
4. Best Possible Use of Resources: Efficient use of resources—capital, labor, materials, and machinery—is vital. Businesses should minimize waste and maximize productivity to achieve economic efficiency and profitability.
B. Social Objectives
Social objectives focus on the welfare of society. Businesses, by utilizing societal resources, are expected to contribute positively to the community.
1. Production and Supply of Quality Goods and Services: Businesses should provide high-quality goods and services at fair prices. Ensuring the timely supply of products and avoiding practices like adulteration are crucial to meeting customer needs and maintaining trust.
2. Adoption of Fair Trade Practices: Businesses must avoid unethical practices such as hoarding, black marketing, and misleading advertisements. Fair trade practices build trust, enhance reputation, and ensure long-term success.
3. Contribution to the General Welfare of Society: Businesses should support societal welfare by contributing to education, healthcare, and recreational activities. Establishing schools, vocational training centers, hospitals, and parks benefits society and demonstrates corporate social responsibility.
C. Human Objectives
Human objectives aim at the well-being and development of employees and disadvantaged individuals in society.
1. Economic Well-being of Employees: Providing fair wages, incentives, and benefits like provident funds and pensions ensures employee satisfaction and motivation, enhancing productivity and loyalty.
2. Social and Psychological Satisfaction of Employees: Creating a supportive work environment with opportunities for career advancement, interesting and challenging jobs, and addressing employee grievances promptly ensures job satisfaction and productivity.
3. Development of Human Resources: Investing in training and development programs enhances employee skills and competencies, contributing to personal growth and business success.
4. Well-being of Socially and Economically Backward People: Businesses should support disadvantaged communities by providing vocational training, employment opportunities, and scholarships for education, promoting social equity.
D. National Objectives
National objectives align business activities with broader national goals, contributing to national development.
1. Creation of Employment: By establishing new units and expanding markets, businesses create job opportunities, reducing unemployment and supporting economic stability.
2. Promotion of Social Justice: Businesses should provide equal opportunities to all individuals, especially the weaker sections of society, ensuring fairness and inclusivity.
3. Production According to National Priority: Businesses should align their production with national priorities, ensuring the availability of essential goods at reasonable prices, supporting national self-sufficiency.
4. Contribution to the Revenue of the Country: Paying taxes and dues promptly and honestly helps generate government revenue, which is essential for national development.
5. Self-sufficiency and Export Promotion: Businesses should aim to reduce imports and increase exports, contributing to national self-reliance and enhancing foreign exchange reserves.
E. Global Objectives
Global objectives focus on expanding business activities beyond national borders and contributing to global economic development.
1. Raise General Standard of Living: Global business activities make quality goods available at reasonable prices worldwide, improving the standard of living in different countries.
2. Reduce Disparities among Nations: Businesses should help reduce disparities between rich and poor nations by expanding operations, investing capital, and fostering industrial and economic growth in developing and underdeveloped countries.
3. Make Available Globally Competitive Goods and Services: Producing goods and services that are competitive in global markets enhances the exporting country's image, earns foreign exchange, and supports national economic growth.
By understanding and pursuing these objectives, businesses can achieve profitability while contributing positively to society and the economy, ensuring long-term success and sustainability.