Submitted To:-

Presented By:-

Prof. anindita chatterjee

Dheeraj gupta
Manish patidar
Reeta vishwakarma
Shweta jain

If you dont
know where
you are going,
youll end up
someplace
else.

OBJECTIVES OF BUSINESS
Organizations are created As a tool for the
achievement of common objectives through cooperative
effort.
It is the first step in planning process.
Plans, strategies and policies cannot be formulated unless
the objectives have been clearly identified and defined.
objectives provide the basis and direction for the
performance of all the other managerial functions.

The concept and nature of

objectives

Objectives are broad statement of the values which the

organization aim at attaining in the future They represent
the outcomes or targets that the business wants to gain in
order to achieve its aims.
Well defined objectives are important.
They will help the business to be clear about what it wants
to achieve.
The performance of a business could be assessed by how
effectively it achieves its objectives.
Objective thus refer to future destination of an organization

Purpose, mission,
objectives and goals
The word purpose, mission, objective and goal are often used
interchangeably however, there are fine distinction between them
Purpose refer to basic intention in establishment of an
organization.
The purpose of an organization takes the form of a mission when it
is associated with some ideology, religious, or moral values, and its
founders are psychologically committed to its attainment.
Objectives are more specific than purpose, and have a time
dimension.
Goals constitute elements of objectives, and are more specific.
Goals are not only specific statements of the desired results but
also have relatively shorter time dimension.

Narayan murti chairperson infosis group

The company follows the following
principles:
Vision: "We will be a globally respected
corporation."
Mission : "To achieve our objectives in an
environment of fairness, honesty, and
courtesy towards our clients, employees,
vendors and society at large".

Organizations have
multiple objectives
Organizations are generally characterized by
multiplicity of objectives.
Organizations having plural objectives is that they have to
deal with a number of interest groups who have stakes in
their survival, growth and profitability.
These interest groups are mainly stakeholders, creditors,
employees, customers, suppliers, community, society and
government.
Another reason for multiplicity of objectives is that no
single objective is adequate to ensure the survival, growth
and profitability of an organization.

 Specific
-stating exactly what it is trying
to achieve.
Measurable
-able to be measured to decide
if they have been achieved.
Agreed
-have the approval and
understanding of everyone
involved.
Realistic
-able to be achieved by the
business taking into account
its resources, competition,
market, etc.
Time Specific
-state a time by which they
should be achieved

OBJECTIVE ARE ARRANGED IN

A HIErARCHY
Organizational efficiency
High productivity
Profit maximization
Organizational growth
Industrial leadership
Organizational stability
Employee welfare
Social welfare

LONG AND SHORT RANGE

OBJECTIVE
LONG TERM OBJECTIVE
Long-term objective defined any goal that has a time
frame exceeding 5-10 year. Business goals that are
normally considered long-term include Developing a
new product growing annual revenue and developing a
comprehensive marketing and public relation strategy
Long-term goals must not go on forever. While they
take more time than short term objective long-term
goals must be realistic and time bound

SHORT-TERM OBJECTIVE

Short-term objective represent the goals an

organization sets that are centered on tasks
that can be achieved within the next six
months or at the outset within one year
Example -short term goal might be to
increase sales by 10% this is an easily
measurable goal and employees can be held
directly accountable for ensuring that it is
met

Continual adjustment of
objective

Continual adjustment is simply always

identifying and making change that result
in better outcomes

IMPORTANCE OF OBJECTIVES
Objectives are the essence of organized Endeavour. They serve a
number of important purposes, such as:

1.Provide a basis for the performance of all other managerial

functions.
2.Provide an unique identity for the enterprise.
3.Provide direction to organized effort.
4.Help in uplifting the employee morale and motivation.
5.Serve as criteria for evaluating decisions.
6.Provide a basis of control.

Provide a basis for the

performance of
managerial functions
Objectives are the initial point of departure for
the performance of all managerial functions.

- They provide the basis for the formulation of long

and short range plans, strategies, policies and rules,
procedures, budgets, etc.

- There cannot be any planning without first defining

the objectives, as its fundamental function is to chart
the programes and courses of actions for their
achievement.

- Activities required for the implementation of plans

provide basis for organizing, which in turn signifies the
need of staffing by creating jobs and positions.

Coordination is then required for channelizing

all organizational activities and efforts towards
the achievement of the desired objectives.
The objectives also serve as a standards for the
performance of control functions.
Thus, objectives serve as the benchmark for all
managerial functions.

Provide an unique identity for

the enterprise.
Every organization is unique in its character, and it
is objectives that provide it this uniqueness.

Eg., A radio manufacturing company which defines its

business as music will be different from another
which aims at providing means of entertainment. The
first company is product-oriented and the second one
is customer value-oriented. Similarly, a company that
aims at providing quality products is different from
the other which has low-priced products as one of its
objectives. Objectives thus provide an identity to an
organization what it is, what are its values, in what
direction it is moving, and it will be in the future .

This identity of the company provides its

creditors, investors, customers, suppliers,
employees and other interest group a
basis to differentiate it from other
companies in the industry.

Provide direction to organized

effort
Objectives guide actions.
They provide direction for the performance
of organized activity.
Without the guidance provided by objectives, the
various parts of an organization- divisions,
departments, sections and employees- will be
pulling in conflicting directions resulting in chaos.
Objectives are, therefore, critical in providing
direction to organized effort.
Common objectives serve as a basis for
cooperative and organized efforts.

Help in uplifting the

employee morale and
motivation
Objectives provide a sense of purpose to employee
activities which helps in boosting their morale.
Employees seek to satisfy their own personal goals
through contributing to organizational goals.
Objectives provide the basis for integrating the
employees personal goals with their functions,
duties and responsibilities.
Accomplishment of organizational goals provides
them a sense of achievement which acts as a
morale booster and motivator.

Serve as criteria for evaluating decisions

Decisions are a means for

accomplishing the desired goals.
A decision is good or bad, optimal or
suboptimal, functional or dysfunctional
depends on the results which it produces
in the future.
If these results contribute to the
attainment of predetermined objectives, it
will be regarded as a good decision.

Provide a basis of control

Control is the function of measuring ,
comparing and evaluating performance
against predetermined standards.
Control will be meaningless in the absence
of standards.
The standards for the comparison and
evaluation of performance are provided by
objectives.

Types of objectives

According to
Davis

primary

Production and
distribution of saleable
Shareholders, creditors,
suppliers, customers,
employee and the
government

Secondary

Quality control industrial

engineering, security etc

Community and society

social

Minimally should be law

abiding citizen

key area in which objective

should be set
According to Ducker

Market standing
Innovation
Productivity
Physical and financial resources
Profitability
Manager performance and development
Worker performance and attitudes
Social responsibility

objectives common to all

kind of business enterprises

SURVIVAL

SOCIAL
RESPONSIBILI
TY

GROWTH

ORGANIZATIO
NAL
OBJECTIVE
EMPLOYEE
DEVELOPME
NT

PROFIT

INNOVATION

EFFICIENCY
AND
PRODUCTIVI
TY

survival
Important when
Recession
Changes in customer needs
Major technological changes
Non availability of raw materials

growth
If it does not grow it will
decay
Growth than profit
maximization
According McFarland an
environment of growth is
conductive to high morale,
creativity and heightened level
of human performance
one sided growth may
endanger a companys survival

profit
Investors and
creditors
According to Drucker
profit is a condition
of survival and the
cost of staying in the
business
Valid criteria to judge
the effectiveness of
the management

Efficiency and productivity

Efficiency- economy in the

utilization of the resources
Reduced input output ration
Greater is the efficiency in
resource utilization greater is
the productivity
Indian productivity council

Inno
vati
on

Needed In
Technology
Method and process of
production
Improving quality and
variety of products
Reduce cost of production
marketing

Employee development

Social responsibility
Ecological
preservation
Need satisfaction
Role of
government

Balancing the objective

Setting of priorities

FIT
O
PR

MA
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TEC
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Thank