Business Organisation Objectives of Business A business is

Business Organisation

Objectives of Business A business is an organisation of human, material and other intangible resources. It is created to offer satisfaction to its customers, owners, employees, managers and other stockholders. Peter Drucker suggested that there cannot be one right objective. He point out that objectives be stated for each of the following areas of accomplishment. They are Ø Market standing Ø Innovation Ø Productivity Ø Profitability Ø Public responsibilities.

Economic Objective of a Business is an economic activity. Therefore, it aims at earning profit. Following are the economic objectives of a business: Ø Earning profit Ø Creation of demand Ø Optimum use of resources Ø Innovation Ø Creation of utilities

National objective of a Business Following are the national objectives of a business: Ø Ensuring social justice Ø Development of small entrepreneurs Ø Production according to national policies Ø National self sufficiency and export development Ø Development of skilled personnel

Human Objective of a Business Human objectives of a business require that a workable balance should be maintained among the parties such as employees, shareholders, and consumers. Following are the human objectives of business: Ø Welfare of employees Ø Satisfaction of consumers Ø Satisfaction of shareholders.

Social Objectives of a Business is an economic institution. It operates in the society. It is a part and parcel of the society. Therefore, it has to meet the needs and expectations of the society. That is, it is the responsibility of business to fulfil certain obligations to the society. Following are the social objectives of a business: Ø Supply of goods or services Ø Avoid profiteering Ø Welfare of workers Ø Consumer’s satisfaction Ø Proper Return to investors Ø Co-operation with the Government.