Business Objectives - Meaning
Business objectives are the goals, aims or utilization of the blogspot.com//search?q=what-is-business-meaning-definitions">business. The line of piece of job organisation tries to hit these goals. Profit is the principal objective of business. However, the line of piece of job organisation cannot bring exclusively 1 objective. This is because it has to satisfy dissimilar groups such equally shareholders, employees, customers, creditors, etc. So, it has to produce objectives for each group.
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Types of Business Objectives
There are v types of line of piece of job organisation objectives, viz.,
- Economic Objectives,
- Social Objectives,
- Organic Objectives,
- Human Objectives, and
- National Objectives
These types of line of piece of job organisation objectives are depicted inwards the next picture.
Objective gives management to the business. It motivates the owners, managers together with employees to locomote hard. It helps inwards planning together with decision-making. It is used to evaluate (measure) the surgical procedure 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 scheme want to hit over varying catamenia of time."
Nature Characteristics of Business Objectives
The features or characteristics of line of piece of job organisation objectives are depicted below.
1. Multiplicity of Objectives
Business objectives are multiple inwards character. That is, a line of piece of job organisation does non bring exclusively 1 objective. It has many or multiple objectives. This is because a line of piece of job organisation has to satisfy dissimilar groups, i.e. shareholders, employees, customers, creditors, vendors, society, etc. The line of piece of job organisation has to produce dissimilar objectives for each group.
2. Hierarchy of Objectives
Hierarchy way to write downwards the objectives according to their importance. The virtually of import objective is written first, together with the to the lowest degree of import objective is written last. All objectives are important. However, to a greater extent than or less objectives are to a greater extent than of import than others. Some objectives withdraw immediate activeness spell others tin live kept aside for to a greater extent than or less time.
3. Periodicity of Objectives
Based on period, line of piece of job 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 v years or more. Long-term objectives are to a greater extent than general. They are similar a Master Plan.
4. Flexibility of Objectives
The line of piece of job organisation is flexible. Therefore, the line of piece of job organisation objectives must equally good live flexible. If the objectives are rigid, the line of piece of job organisation volition non survive. This is because the line of piece of job organisation surroundings keeps on changing. There are continuous changes inwards the technical, social, economical together with political environment. The line of piece of job organisation has to alter its objectives according to the changes inwards the line of piece of job 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 slow 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 slow 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 stair out qualitative objectives. Influenza A virus subtype H5N1 line of piece of job organisation must bring both quantitative together with qualitative objectives.
6. Measurability of Objectives
The objectives must live clear together with 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 together with specific objective. It is slow to stair out the surgical procedure of the salesman. If a salesman sells 200 units of H2O purifier inwards a calendar month together with thus his surgical procedure is good. He tin live given bonus together with promotion. However, if a salesman sells exclusively 10 units of H2O purifier inwards a calendar month together with thus his surgical procedure is bad. He needs to a greater extent than training. Measurable objectives motivate the employees to locomote hard. This is because they know their target clearly. Their surgical procedure tin equally good live measured easily.
7. Network of Objectives
Network way an interconnection betwixt dissimilar objectives. Influenza A virus subtype H5N1 line of piece of job 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 upwardly each other. They must non clash amongst each other. They must displace inwards the same direction. If not, the line of piece of job organisation volition non survive. Similarly, the objectives of all the departments, must back upwardly each other. They must non clash or conflict volition each other.
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