OBJECTIVES OF BUSINESS
OBJECTIVES OF BUSINESS
Every
business enterprise has certain objectives which regulate and generate its
activities. Objectives are needed in every area where performance and results
directly affect survival and prosperity of a business. Various objectives of
business may be classified into four broad categories as follows.
1.Economic objectives
2. Social objectives
3.Human objectives
4.National objectives
Economic
Objectives
Business
is basically an economic activity. Therefore, its primary objectives are
economic in nature. The main economic objectives of business are as follows:
1. Earning profits -.
2. Creating customers -
3. Innovations -
Social Objectives
Business does not exist in a vacuum. It is a part of society. It cannot survive and grow without the support of society. Business must therefore discharge social responsibilities in addition to earning profits. According to Henry Ford, "the primary aim of business should be service and subsidiary aim should be earning of profit". The social objectives of business are as follows: —
(1)
Supplying desired
goods at reasonable prices –
(2)
Fair Remuneration to
employees -
(3)
Employment Generation –
(4)
Fair return to investor
–
(5)
Social welfare -
(6)
Payment of Government
Dues
-
Human
Objectives
Business
is run by people and for people. Labour is a valuable human element in
business. Human objectives of business are concerned with the well-being of
labour. These objectives help in achieving economic and social objectives of
business. Human objectives of business are given below:
(i)
Labour welfare -.
(ii)
Developing human
resources –
(iii)
Participative
management -
(iv)
Labour management
cooperation –
National
Objectives
National objectives of business are as
follows:
(I)
Optimum utilisation
of resources -
(II)
National
self-reliance -
(III)
Development of small
scale industries -
(IV)
Development of
backward areas -
(V)
Control over
pollution –
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