Business Objectives - Meaning
Business objectives are the goals, aims or operate of the blogspot.com//search?q=what-is-business-meaning-definitions">business. The trouble organization tries to accomplish these goals. Profit is the principal objective of business. However, the trouble organization cannot bring exclusively 1 objective. This is because it has to satisfy dissimilar groups such every bit shareholders, employees, customers, creditors, etc. So, it has to cook objectives for each group.
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Types of Business Objectives
There are 5 types of trouble organization objectives, viz.,
- Economic Objectives,
- Social Objectives,
- Organic Objectives,
- Human Objectives, and
- National Objectives
These types of trouble organization objectives are depicted inward the next picture.
Objective gives management to the business. It motivates the owners, managers as well as employees to piece of occupation hard. It helps inward planning as well as 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 as well as each of its components."
According to Dalton E. McFarland,
"Objectives are the goals, aims or purposes that arrangement want to accomplish over varying menses of time."
Nature Characteristics of Business Objectives
The features or characteristics of trouble organization objectives are depicted below.
1. Multiplicity of Objectives
Business objectives are multiple inward character. That is, a trouble organization does non bring exclusively 1 objective. It has many or multiple objectives. This is because a trouble organization has to satisfy dissimilar groups, i.e. shareholders, employees, customers, creditors, vendors, society, etc. The trouble organization has to cook dissimilar objectives for each group.
2. Hierarchy of Objectives
Hierarchy agency to write downward the objectives according to their importance. The close of import objective is written first, as well as the to the lowest degree of import objective is written last. All objectives are important. However, roughly objectives are to a greater extent than of import than others. Some objectives involve immediate activity spell others tin live kept aside for roughly time.
3. Periodicity of Objectives
Based on period, trouble organization 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 organization is flexible. Therefore, the trouble organization objectives must every bit good live flexible. If the objectives are rigid, the trouble organization volition non survive. This is because the trouble organization environs keeps on changing. There are continuous changes inward the technical, social, economical as well as political environment. The trouble organization has to alter its objectives according to the changes inward the trouble organization environment. The hierarchy of objectives must every bit good live changed from fourth dimension to time.
5. Qualitative as well as Quantitative Objectives
There are 2 types of objectives, viz., Quantitative as well as Qualitative objectives.
- Quantitative objectives are slow to measure. It is expressed inward numbers. For e.g. inward Dollars, Rupees, Percentage, etc. Quantitative objectives are visible, tangible as well as countable.
- Qualitative objectives are non slow to measure. It is non expressed inward numbers. For e.g. Employee performance, employee satisfaction, etc. These objectives cannot live measured. Qualitative objectives are invisible, intangible as well as uncountable.
Today modern methods are used to mensurate qualitative objectives. Influenza A virus subtype H5N1 trouble organization must bring both quantitative as well as qualitative objectives.
6. Measurability of Objectives
The objectives must live clear as well as specific. It must live slow to measure. For e.g. Each salesman must sell 100 units of H2O purifier per month. This is a clear as well as specific objective. It is slow to mensurate the functioning of the salesman. If a salesman sells 200 units of H2O purifier inward a calendar month as well as thus his functioning is good. He tin live given bonus as well as promotion. However, if a salesman sells exclusively 10 units of H2O purifier inward a calendar month as well as thus his functioning is bad. He needs to a greater extent than training. Measurable objectives motivate the employees to piece of occupation hard. This is because they know their target clearly. Their functioning tin every bit good live measured easily.
7. Network of Objectives
Network agency an interconnection betwixt dissimilar objectives. Influenza A virus subtype H5N1 trouble organization has many dissimilar objectives, viz., corporate objectives, departmental objectives, sectional objectives as well as private objectives. It every bit good has objectives for shareholders, customers, employees, etc. All these objectives must live interconnected. They must back upwards each other. They must non clash amongst each other. They must displace inward the same direction. If not, the trouble organization volition non survive. Similarly, the objectives of all the departments, must back upwards each other. They must non clash or conflict volition each other.
