3. What are objectives?
• Well defined & clear direction to activities of an
organisation / firm
• Broad statements of values which orgn aims at
achieving
• Indicates destination towards which the business
unit desires to move
• It rational human activity
• Categorized differently
• Base for further planning
• Focal point

5. Definition of business objectives
• “Objectives are the ends towards which
activities of any enterprise or department
or project within it, are aimed.”
• “Objectives are the goals, aims or
purposes that organizations wish to
achieve over varying period of time.”

7. Characteristics/ features
• Combination of plural/ multiply objectives
• Lengthy & continuous process
• Must easy & clear to understand
• Challenging & creative
• Concrete & specific
• Measurable & flexible
• Relates to specific time frame
• Involves all management functions
• Subject to obstacles/ constraints
• Hierarchy of objectives- categorized or priority
basis
• Future oriented –result oriented- growth , profit,
expansion

8. Importance / role / need of
objectives in biz management
• Justify existence.
• Facilitates planning
• Define relationships with environment
• Motives to achieve mission
• Supports appropriate decision making
• Standard of performance
• Ensures participation & Build confidence of
employee
• Bring uniformity in operations
• Helps allocation of jobs

10. Organic / basic objective
• Survival
• Growth
• Recognition/ prestige/ Image

11. Economic Objectives
• Earn Profit
• Produce tangible wealth
• Identify customer- create customer
• Innovation
• Bring down cost
• Accelerate growth
• Ensure optimum utilization of resources

12. Social Objectives
• Offer satisfaction to consumers
• Steady supply of goods
• Reasonable returns on investment
• Fair compensation & Good working conditions
• Social responsibility-environment protection
• Support employment
• Ethical practices
• Be good corporate citizen

13. Human objectives
• Right compensation pattern
• Good working environment
• Build job satisfaction & retention policies
• Career development programs
• Training & development opportunities
• Encourage labour participation practices

14. National objectives
• Bring growth to nation
• Ethical practices
• Social welfare & justices
• Promote exports-earn foreign exch
• Support country in being self-sufficient
• Mass employment opportunity
• Bring new technology
• Encourage R&D

15. Steps in Formulating Business
objectives
Consider environment factors
↓
Consider resources of the enterprise
↓
Consider individual dominance
↓
Consider value system
↓
Consider past objectives
↓
Determine final objectives