Business Objectives - Important Types Nature Characteristics

Business Objectives - Meaning

Business objectives are the goals, aims or role of the business. The concern tries to plough over these goals. Profit is the primary objective of business. However, the concern cannot convey alone ane objective. This is because it has to satisfy dissimilar groups such every bit shareholders, employees, customers, creditors, etc. So, it has to laid upwards objectives for each group.

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Types of Business Objectives

There are 5 types of concern objectives, viz.,

1. Economic Objectives,
2. Social Objectives,
3. Organic Objectives,
4. Human Objectives, and
5. National Objectives

These types of concern objectives are depicted inward the next picture.

Objective gives management to the business. It motivates the owners, managers together with employees to function hard. It helps inward planning together with decision-making. It is used to evaluate (measure) the surgical physical care for of the employees.

Definition of Objectives

According to Louis Allen,

"Objectives are goals established to guide the efforts of the companionship together with each of its components."

According to Dalton E. McFarland,

"Objectives are the goals, aims or purposes that organisation want to plough over over varying catamenia of time."

Nature Characteristics of Business Objectives

The features or characteristics of concern objectives are depicted below.

1. Multiplicity of Objectives

Business objectives are multiple inward character. That is, a concern does non convey alone ane objective. It has many or multiple objectives. This is because a concern has to satisfy dissimilar groups, i.e. shareholders, employees, customers, creditors, vendors, society, etc. The concern has to laid upwards dissimilar objectives for each group.

2. Hierarchy of Objectives

Hierarchy agency to write downwardly the objectives according to their importance. The virtually of import objective is written first, together with the to the lowest degree of import objective is written last. All objectives are important. However, about objectives are to a greater extent than of import than others. Some objectives involve immediate activity spell others tin live kept aside for about time.

3. Periodicity of Objectives

Based on period, concern objectives tin live classified into 2 types, viz.,

1. Short-term objectives, and
2. Long-term objectives.

The short-term objectives are made for a short-period, i.e. maximum ane year. Short-term objectives are to a greater extent than specific.

The long-term objectives are made for a long-period, i.e. for 5 years or more. Long-term objectives are to a greater extent than general. They are similar a Master Plan.

4. Flexibility of Objectives

The concern is flexible. Therefore, the concern objectives must too live flexible. If the objectives are rigid, the concern volition non survive. This is because the concern environs keeps on changing. There are continuous changes inward the technical, social, economical together with political environment. The concern has to modify its objectives according to the changes inward the concern environment. The hierarchy of objectives must too live changed from fourth dimension to time.

5. Qualitative together with Quantitative Objectives

There are 2 types of objectives, viz., Quantitative together with Qualitative objectives.

1. Quantitative objectives are tardily to measure. It is expressed inward numbers. For e.g. inward Dollars, Rupees, Percentage, etc. Quantitative objectives are visible, tangible together with countable.
2. Qualitative objectives are non tardily to measure. It is non expressed inward numbers. For e.g. Employee performance, employee satisfaction, etc. These objectives cannot live measured. Qualitative objectives are invisible, intangible together with uncountable.

Today modern methods are used to mensurate qualitative objectives. Influenza A virus subtype H5N1 concern must convey both quantitative together with qualitative objectives.

6. Measurability of Objectives

The objectives must live clear together with specific. It must live tardily to measure. For e.g. Each salesman must sell 100 units of H2O purifier per month. This is a clear together with specific objective. It is tardily to mensurate the surgical physical care for of the salesman. If a salesman sells 200 units of H2O purifier inward a calendar month thence his surgical physical care for is good. He tin live given bonus together with promotion. However, if a salesman sells alone 10 units of H2O purifier inward a calendar month thence his surgical physical care for is bad. He needs to a greater extent than training. Measurable objectives motivate the employees to function hard. This is because they know their target clearly. Their surgical physical care for tin too live measured easily.

7. Network of Objectives

Network agency an interconnection betwixt dissimilar objectives. Influenza A virus subtype H5N1 concern has many dissimilar objectives, viz., corporate objectives, departmental objectives, sectional objectives together with private objectives. It too has objectives for shareholders, customers, employees, etc. All these objectives must live interconnected. They must back upwards each other. They must non clash amongst each other. They must displace inward the same direction. If not, the concern volition non survive. Similarly, the objectives of all the departments, must back upwards each other. They must non clash or conflict volition each other.