Business organizations pursue various objectives that can be broadly categorized into economic, social, human, national, and global objectives. Each category serves a distinct purpose in ensuring the business’s sustainability, growth, and positive impact on society.
A. Economic Objectives
1. Profit Earning:
- Importance: Profit is essential for the survival and growth of a business. It provides the means to reinvest, expand, and sustain operations.
- Necessity: Without profit, a business cannot thrive in a competitive market.
2. Creation of Customers:
- Objective: Attract and retain customers by providing quality goods and services at reasonable prices.
- Activities: Marketing strategies, customer relationship management, and product development.
3. Regular Innovations:
- Objective: Improve products, production processes, and distribution methods.
- Impact: Reduces costs and increases sales by attracting more customers with improved offerings.
- Examples: Transition from handlooms to power looms, use of tractors instead of manual farming tools.
4. Best Possible Use of Resources:
- Objective: Efficient utilization of men, materials, money, and machines.
- Strategies: Employing skilled workers, maximizing machine usage, and minimizing raw material wastage.
B. Social Objectives
1. Production and Supply of Quality Goods and Services:
- Expectation: Produce and supply quality goods at the right time and price.
- Responsibility: Avoid adulterated or inferior products that could harm customers.
2. Adoption of Fair Trade Practices:
- Prohibition: Avoid hoarding, black-marketing, and overcharging.
- Integrity: Ensure advertisements accurately represent product quality.
- Consequences: Unfair practices lead to penalties and damage to reputation.
3. Contribution to General Welfare:
- Initiatives: Establish schools, colleges, vocational training centers, hospitals, parks, and sports complexes.
- Impact: Enhance the community’s overall welfare and upliftment.
C. Human Objectives
1. Economic Well-being of Employees:
- Provisions: Fair remuneration, performance incentives, provident fund, pension, and medical facilities.
- Outcome: Satisfied employees contribute more effectively to business success.
2. Social and Psychological Satisfaction:
- Strategies: Create interesting and challenging jobs, align employees with suitable roles, and provide promotion opportunities.
- Impact: Satisfied employees are more productive and loyal.
3. Development of Human Resources:
- Requirement: Continuous training and development to enhance skills and competencies.
- Benefit: Well-trained employees contribute to business prosperity.
4. Well-being of Socially and Economically Backward People:
- Support: Vocational training, recruitment preference for physically and mentally challenged individuals, and scholarships for meritorious students.
- Contribution: Assist in the upliftment of disadvantaged groups.
D. National Objectives
1. Creation of Employment:
- Goal: Generate employment through new business units, market expansion, and distribution channels.
- Impact: Reduces unemployment and boosts the economy.
2. Promotion of Social Justice:
- Expectation: Provide equal opportunities for employment and career growth.
- Focus: Special attention to weaker and backward sections of society.
3. Production According to National Priority:
- Alignment: Produce goods that align with government plans and policies.
- Objective: Ensure the availability of essential goods at reasonable prices.
4. Contribution to Revenue:
- Responsibility: Pay taxes and dues honestly and regularly.
- Outcome: Increase government revenue for national development.
5. Self-sufficiency and Export Promotion:
- Strategy: Restrict imports and increase exports.
- Benefit: Enhance foreign exchange reserves and promote self-reliance.
E. Global Objectives
1. Raise General Standard of Living:
- Impact: Make quality goods available worldwide at reasonable prices, improving living standards.
2. Reduce Disparities among Nations:
- Strategy: Invest capital in developing and underdeveloped countries to foster economic growth.
- Outcome: Narrow the gap between rich and poor nations.
3. Make Available Globally Competitive Goods and Services:
- Objective: Produce goods and services that meet global standards and demand.
- Benefit: Enhance the exporting country’s image and increase foreign exchange earnings.
Conclusion
Business organizations must balance various objectives to ensure their sustainability and positive impact on society. By pursuing economic, social, human, national, and global objectives, businesses can achieve long-term success and contribute to the overall well-being of the community and the nation.