What are objectives?

• Well defined & clear direction to activities of an organisation / firm

• Broad statements of values which orgn aims at achieving

• Indicates destination towards which the business unit desires to move

• It rational human activity• Categorized differently • Base for further planning• Focal point

Definition of business objectives

• “Objectives are the ends towards which activities of any enterprise or department or project within it, are aimed.”

• “Objectives are the goals, aims or purposes that organizations wish to achieve over varying period of time.”

Characteristics/ features • Combination of plural/ multiply objectives• Lengthy & continuous process• Must easy & clear to understand• Challenging & creative• Concrete & specific • Measurable & flexible• Relates to specific time frame• Involves all management functions• Subject to obstacles/ constraints • Hierarchy of objectives- categorized or priority

basis • Future oriented –result oriented- growth , profit,

expansion

Importance / role / need of objectives in biz management

• Justify existence.• Facilitates planning• Define relationships with environment• Motives to achieve mission• Supports appropriate decision making• Standard of performance• Ensures participation & Build confidence of

employee• Bring uniformity in operations• Helps allocation of jobs

Organic / basic objective

• Survival

• Growth

• Recognition/ prestige/ Image

Economic Objectives

• Earn Profit

• Produce tangible wealth

• Identify customer- create customer

• Innovation

• Bring down cost

• Accelerate growth

• Ensure optimum utilization of resources

Social Objectives

• Offer satisfaction to consumers• Steady supply of goods• Reasonable returns on investment• Fair compensation & Good working conditions• Social responsibility-environment protection• Support employment• Ethical practices • Be good corporate citizen

Human objectives

• Right compensation pattern

• Good working environment

• Build job satisfaction & retention policies

• Career development programs

• Training & development opportunities

• Encourage labour participation practices

National objectives

• Bring growth to nation• Ethical practices • Social welfare & justices• Promote exports-earn foreign exch• Support country in being self-sufficient• Mass employment opportunity• Bring new technology• Encourage R&D

Steps in Formulating Business objectives

Consider environment factors↓

Consider resources of the enterprise↓

Consider individual dominance↓

Consider value system↓

Consider past objectives↓

Determine final objectives