In this tutorial, we will learn about the objectives of management, which are the solicited outcome of any action. They must be received from the first view of the business to achieve maximum profit with minimum efforts.
- To optimize the use of resources.
- The smooth and coordinated functioning of an enterprise.
- Human betterment and social justice.
Any organization, have different objectives and management which has to achieve all objectives effectively and efficiently.
These objectives of management can be classified into three categories:
1. Organizational objectives
2. Social objectives
3. Personal objectives
Let’s discuss these objectives one by one.
Objectives of management:
Management is responsible for setting and achieving objectives for the organization. The main objective of any organization should be to utilize human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business.
- Survival: The basic objective of any business is survival. To survive, an organization must earn enough revenues to cover costs.
- Profit: Management has to ensure that the organization makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise.
- Growth: To remain in the industry, management must exploit fully the growth potential of the organization. There are many indicators of growth such as sales volume, increase in the of employee count, the number of products or the increase in capital investment
As a part of society, every organization whether it is business or non-business has a social obligation to fulfill which is to consistently create economic value for various constituents of society. This includes:
- Environmental friendly methods of production
- Giving employment opportunities to the disadvantaged sections of society
- Providing basic amenities like schools and crèches to employees
The organization consists of different types of individual who joins it to satisfy their diverse needs. The individual may seek to satisfy needs such as:
- Competitive salaries and perks
- Peer recognition
- personal growth and development
Management has to reconcile personal goals with organizational objectives for harmony in the organization.
Getting maximum results with minimum efforts –
The main objective of management is to secure maximum outputs with minimum resources. Management is concerned with thinking & utilizing human, material & financial support to result in the best combination. This combination results in the reduction of various costs.
Increasing the efficiency of factors of production –
Through proper utilization of various elements of production, their energy can be increased to a great extent which can be obtained by reducing spoilage, wastage, and breakage of all kinds, this, in turn, leads to saving of time, effort, and money which is essential for the growth & prosperity of the enterprise.
Maximum prosperity for employer & employees –
Management ensures the smooth and coordinated functioning of the enterprise. In turn, it helps provide maximum benefits to the employee in the shape of the right working conditions, suitable wage system, incentive plans on the one hand, and higher profits to the employer on the other side.
Human betterment & social justice –
Management serves as a tool for the upliftment as well as the improvement of the society. Through increased productivity & employment, control ensures better standards of living for the organization. It provides justice through its uniform policies.
Importance of management:
- Management directs group efforts towards the achievement of predetermined goals.
- Proper management yields minimum input into maximum output, which reduces the overall cost of the enterprise.
- Management helps in attaining equilibrium.
Efficient management helps to better economic production and welfare of people, reduces wastage of scarce resources, and improves living standards.
The objectives of management are defining specific objectives within an organization that management can convey to organization members and then deciding how to achieve each goal in sequence.
This process allows managers to take work that needs to be done one step at a time to allow for a calm yet productive work environment.
This process also helps organization members see their accomplishments as they achieve each objective, reinforcing a positive work environment and a sense of achievement.
The system management by objectives can describe as a process whereby the superior and subordinate jointly identify common goals, define each individual’s significant areas of responsibility in terms of the results expected of him/her and use these measures as guides for operating the unit and assessing the contribution of each of its members.