Question

What are the organisational objectives of management ?

Hint:

Remember the acronym {S-P-G} for organisational objectives: {S}urvival (staying in business), {P}rofit (the reward for risk), and {G}rowth (expanding over time).

Answer 1

The organisational objectives of management are the primary goals that focus on the prosperity and growth of the organisation itself. They aim to efficiently utilize human and material resources to achieve the economic goals of the business. The three main organisational objectives are:

Survival: The most basic objective of any business is to survive. Management must strive to earn enough revenue to cover its costs. Survival is essential for the long-term continuation of the business and to undertake other activities.

Profit: Mere survival is not enough. A business needs to earn a profit, which is the reward for risk-bearing. Profit is essential for covering the costs of staying in business, for growth, and for expansion. It is a measure of the success and efficiency of the business.

Growth: A business needs to grow to remain in the industry in the long run. Growth can be measured in terms of an increase in sales volume, an increase in the number of employees, an increase in capital investment, or an expansion in the number of products or branches. Management must exploit growth opportunities to ensure the long-term success of the enterprise.