Management is perhaps one of the common concepts that we use in our day to day approach at our workplace or organization. Do we pay any attention to the actual word and its essence?
Management is what is essential for the sound functioning of an organization and has several objectives. What are these objectives and how can we ensure that this is paid attention to? Let us check out the significant objectives of management and how they can be achieved.
What are the major objectives of management?
In simple terms, the major objective of management should be to handle the organizational functions in a smoother and efficient manner. If one attempts classifying the objectives of management, they can be broadly categorized into a few categories.
The management objectives can be summarised as below-
- Objectives about organizational responsibility
- Objectives related to social obligations
- Other individual objectives.
Organizational level objectives of management
The major objective of a business is to attain the economic goals that have been agreed upon when setting up the organization. Organizational objectives of management pertaining to the optimum usage of the resources for achieving this end goal.
The organizational, managerial objectives will specifically revolve around how to make use of the resources available. These can further be subdivided into the following categories –
1) Survival
Survival of an organization is dependent upon the successful accomplishment of the economic goals set forth. The revenues that the organization earns should be enough to cover the costs and help save enough. These objectives can successfully be achieved only if the benefits for all the parties involved are taken into consideration.
A good example can be introducing better pricing than competitors without incurring losses. Adopting new technology for your products can help reduce the wastage and faster batch production.
2) Growth
The management should strive to achieve the best possible performance in terms of growth potential. There can be several metrics you can give heed to. Hike in the employee count improved sales figures and the launch of new products.
One of the great examples that come to mind is that of Anchor. The brand had been involved in electrical products. It gradually diversified into the FMCG sector. ITC, which was initially focussed on tobacco products and later diversified into the bakery products like biscuits and noodles.
3) Profitability
Increased profits can be ensured with a few positive concepts. Profitability is one of the basic factors that decide the future and growth of the organization as a whole. If you want to ensure a successful continuation of your business, you should make sure that profitability is ensured.
A good example can be the option to enter into an agreement with low-cost vendors or planning a joint venture. ACGL, a joint venture between the Government of Goa and Tata Automobiles can be seen as a good example. Another recent example is the merger between Vodafone and Idea Cellular.
Objectives of management based on Social Responsibility
An organization is a part of society. Given the fact that the almost all the resources made available for your business are a result of what has been provided by the society, it should be an obligation to repay it in one form or the other.
Some of the social objectives of management can be summarised as here below –
- Ensure health, safety and effectively affordable pricing of the products. The organization should adhere to safe production methods.
- Make sure your organization provides enough employment for the local population. For instance, the federal governments make it mandatory to provide a certain percentage of total employment to the locals.
- Contribute to the standard of living by extending the facilities and other services for the society at large. One of the prime Indoco remedies and other pharmaceuticals that arrange health camps. Asian Paints has been involved in community programmes for the upliftment of the socially backward classes. P & G involved in improving educational programs is another excellent example.
- Make sure better quality of products is developed through minimal costs. This will also be helpful in removing wastages. One of the good examples to fulfilling this responsibility can be the sugar factories diversifying in distilleries making use of the molasses.
Individual objectives of management
Individual objectives of management are also referred to as personal objectives. These are concerned with the objectives of the management about the employees of the organization. It is the employees who run the organization to the core and taking care of them should indeed constitute the major options among the objectives of your organization.
Some of the personal objectives of management include:
- Taking care of the financial needs of your employees like their salary, incentives, bonus, and other benefits.
- Providing a proper level of recognition for the employees commensurate with their personal, organizational and social maturity and skills.
- Better options for the personal growth and development of your employees. You can even consider providing them with shares to the profit so that they will be able to contribute to the development of the organization with a renowned vigor.
- Provide a perfect balance between work and life. If you tend to overload your employees with work beyond their limitations, it can result in the reduced interest and efficiency of your employees.
- Provide a good working environment for the employees.
Some of the examples are playing grounds and recreation facilities for the employees. MRF offers its employees with the Consumer Society benefits specifically for the families of the employees. This can be one of the best examples for the personal objectives of management being accomplished by the organizations.
Conclusion
Well, those were the ideal objectives of management that work towards achieving the best performance of your organization. While you, as an organization, should strive hard to achieve those goals for a full-blown success of your organization, it should also be noted that one of the major elements for the success of your business would be to take care of the profitability of your organization. Take care of the profit-making into consideration and undertake the rest of the functions as outlined in the above discussion.
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