What are the objectives of Management?
Every human activity has its objective. Unless, the objective is well defined, the question of making necessary efforts to achieve it does not arise. Objects and aims direct a man to proceed in a certain way for achieving them. Management is also a human activity and hence it must have definite aims and objectives. In the words of Peter F. Drucker, “Objectives in the key areas are the ‘instrument panel’ necessary to pilot the business enterprise. Without them the management flies by the ‘seat of the pants’ without landmarks, without maps and without having flow route before.” Long ago, Seneca also said, “If a man does not know to part port he is steering, no wind is favorable to him.” A business enterprise aims at maximizing its profit through serving the customers. The realization of this objective depends to large extent on efficient management. According to George R. Terry, “A managerial objective is the goal which prescribes definite scope and suggests the efforts of a manager.”
Four concepts are included in this definition of objective of management as given by George R. Terry: (i) Goal, (ii) Scope, (iii) Definiteness, and (iv) Direction. From manager’s point of view, objectives are the values which are to be achieved. The scope of values of every business enterprise must be well defined in which more than one goal can also be included. For achieving the objectives, it is essential that the managerial objectives are clear and definite.
Types or Classification of Management Objectives:
Management objectives may be classified as under:
The primary objective of management of every business enterprise is to provide saleable gods and services in the market. They should be (i) reliable, (ii) competitive, (iii) standard quality, (iv) reasonably priced, (v) insufficient quantity and (vi) produced under ultramodern techniques.
Secondary objectives assist the achievement of primary objectives. They make aware of the targets fixed for increasing efficiency and economy in the work performance. Targets like analysis, consultation and definition etc. are the examples of secondary objectives. The contribution of secondary objectives is indirect in the sense that they assist the efforts conducted for achieving primary objectives. The nature of secondary objectives like primary objectives is impersonal.
Personal objectives are personal and individual objectives of the members of an organization. Personal objectives are under economic objectives or monetary remuneration or physical needs fulfillment objectives or psychological objectives meant for achieving required prestige, respect, recognition or non-financial rewards. A person tries to achieve personal objectives while working in an organization. The self-sufficiency of the motivations and incentives provided by an organization is quite difficult.
Social objectives means the social responsibilities of an organization towards the society. The management owes a social responsibility. “Better utilization of factors of production to full satisfaction of the society and higher rate of return with maximum social gain”, are being demanded by the management of today. If these are realized, social recognition will automatically come to the management. It is the social responsibility of the management to satisfy not only present needs of the society but also take due care for future generation while managing the production activities. A business enterprise in a integral part of the society. Hence, the management should fix its targets, keeping in view the service towards society, failing to do so, the very existence of business enterprise shall be in danger.