Business Studies Part I
Business Studies Part II

Objectives of Management

Organisational Objectives: Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government.

Survival: The basic objectives of any business is survival. Management must strive to ensure the survival of the organisation. In order to survive, an organisation must earn enough revenues to cover costs.

  Profit: Mere survival is not enough for business. Management has to ensure that the organisation makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for covering costs and risks of the business. 

Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. To remain in the industry, management must exploit fully the growth potential of the organisation.

Social objectivesIt involves the creation of benefit for society. As a part of society, every organisation whether it is business or non-business, has amenities like schools and a social obligation to fulfill. It is the obligation of every organisation to undertake such activities which will benefit the society at large like using eco-friendly methods, contributing towards weaker sections of the society, generating employment opportunities, promoting literacy etc.

Personal objectives: Organisations are made up of people who have different personalities, backgrounds, experiences and objectives.

The various objectives of management being fulfilled by Real Alliance Ltd are stated below:

  1. Organisational objectives: An organization strives to achieve multiple organisational objectives, mainly:
    • Survival: “It is able to earn adequate revenues to cover costs.”
    • Growth: “Its capital base, number of employees and production turnover has
      increased manifolds over the years.”
    • Profit: “The rate of profitability of the business is also creditable.”
  2. Personal objectives: These objectives relate to the needs of the employees of the organization which must be given due consideration.
    “The employees of the company are happy and satisfied with their remuneration, working conditions, promotion policy etc.”
  3. Social objectives: It is expected that every organization should undertake certain initiatives for the welfare of the society at large.
    “As a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the villages adopted by it.”
  4. The two value that Real Alliance Ltd. wants to communicate to the society are:
    • Social welfare
    • Respect for their employees