Objectives of Business
Objectives of business can be classified into three categories - Economic, Social and Human Objectives, explained as follows:
ECONOMIC OBJECTIVES
Economic objectives of business refer to the objective of earning profit and creation of customers, regular innovations and best possible use of available resources.
- Profit Earning
Without profit no business can survive in a competitive market. Profits help businessmen to earn their living and to expand their business activities by reinvesting a part of the profits.
2. Creation of customers
A business unit can survive only if there are customers to buy the products and services. It can be done only if quality goods and services are provided at the reasonable prices.
3.Innovation
In a dynamic world an enterprise can be successful only by adapting itself to the changing environment ,by improvement in products, process of production and distribution of goods.
4.Optimum use of resources
Business activities require various financial and non-financial resources like men, materials, money and machines that must be utilized to the maximum.. It can be done by employing efficient workers, handling the machinery in the best possible manner and minimizing wastage of raw materials.
SOCIAL OBJECTIVES
Social objectives are those objectives of business, which are desired to be
achieved for the benefit of the society:
1. Production and supply of quality goods and services
The objective of business should be to produce better quality goods and supply them at the right time, at a right price.
2. Adoption of fair trade practices
Activities such as hoarding, black-marketing and overcharging, misleading advertisements bring a bad name and sometimes make the businessmen liable for penalty and even imprisonment under the law. So, a businessman should adopt fair trade practices for the welfare of the consumers as well as the society.
3.General welfare of the society
Business enterprise should work for the general welfare of the society like running schools and colleges for better education, opening vocational training centres , establishing hospitals for medical facilities and providing recreational facilities for the general public like parks, sports complexes etc.
HUMAN OBJECTIVES
Human objectives refer to the objectives concerned with the well-being of employees, disabled, handicapped and people who are deprived of proper education and training.
1. Fair remuneration to the employees
Employees must be provided with fair remuneration and incentives for performance, benefits of provident fund, pension and other amenities like medical facilities, housing facilities etc. so that the employees are satisfied and give their best to the business.
2. Social and psychological satisfaction of employees
Employees can be satisfied also, by making the job interesting and challenging, putting the right person in the right job and reducing the monotony of work. Grievances of employees should be handled promptly and their suggestions heard seriously.
3. Development of human resources
Professional growth of employees growth requires proper training and development. So, it is important that business should arrange training and development programmes for its employees.
4. Helping socially and economically backward people
There are a number of ways to help such people like ,vocational training programme may be arranged for backward people in the community. Business units can also help and encourage meritorious students by awarding scholarships for higher studies.