Management Objectives: Balancing Growth, Profitability, and Responsibility
Discover the key objectives of management and how they impact organizations Learn about organizational level objectives such as survival, growth, and profitability, as well as individual objectives and social responsibility Gain a deeper understanding of the purpose and importance of effective management
The term "management" is commonly used in our daily work routines, but do we truly understand its significance? Effective management is crucial for the success of any organization and encompasses various objectives. In order to ensure that these objectives are met, it's important to understand what they are and how they can be accomplished. Let's explore the primary objectives of management and how they can be attained.
What are the major objective of management?
The primary goal of management is to ensure the smooth and efficient operation of organizational functions. If we were to categorize these objectives, we could group them into several broad categories.
Objectives about organizational responsibility
Objectives related to social obligations
Other individual objectives.
Organizational level objective of management
financial objectives, marketing objectives, production objectives, and human resource objectives. Each of these categories plays a crucial role in achieving the overall objective of the business. Financial objectives are focused on maximizing profits and minimizing costs, while marketing objectives are concerned with creating customer value and promoting the business. Production objectives aim to ensure that the organization produces goods and services efficiently and effectively, while human resource objectives focus on managing employees and ensuring their satisfaction and productivity. All of these objectives must be balanced and aligned with the overall goals of the organization to ensure its success.
1) Survival
For an organization to survive, it must achieve its economic goals. This means generating enough revenue to cover costs and save for the future. However, it's important to consider the benefits for all parties involved in order to successfully achieve these objectives.
Introducing competitive pricing strategies without compromising profit margins is a powerful way to gain an edge over rivals. Leveraging new technologies to optimize production processes and minimize waste can also boost efficiency and accelerate batch production.
2) Growth
To ensure optimal growth potential, it is crucial for management to prioritize performance. Key metrics to consider include an increase in employee count, improved sales figures, and the successful launch of new products. By focusing on these areas, a company can position itself for long-term success and profitability.
One company that stands out in terms of successful diversification is Anchor. Originally specializing in electrical products, the brand expanded into the FMCG sector. Similarly, ITC initially focused on tobacco products before branching out into baked goods such as biscuits and noodles.
3) Profitability
In order to guarantee a successful future for your organization, it is essential to prioritize profitability. By implementing a few positive concepts, you can increase your profits and ensure long-term growth. Profitability serves as a fundamental factor in determining the overall success of your business, so it should be a top priority.
Objective of management based on Social Responsibility
One effective strategy is to consider partnerships or joint ventures with low-cost vendors to reduce expenses. The joint venture between the Government of Goa and Tata Automobiles, known as ACGL, serves as a successful example of this approach. Another recent illustration is the merger between Vodafone and Idea Cellular.
As a member of society, organizations have a responsibility to give back in some way, considering that their resources come from the community. Management can aim to achieve social objectives, which may include initiatives such as supporting local causes or implementing environmentally friendly practices.
The products must prioritize the health and safety of consumers while remaining affordable. The organization should prioritize safe production methods to achieve this goal. Additionally, providing adequate employment opportunities to the local population should be a priority, as mandated by federal government regulations.
Improve the quality of life for the community by expanding facilities and services. Several companies, such as Indoco Remedies and other pharmaceuticals, organize health camps, while Asian Paints participates in community programs to uplift socially disadvantaged groups. P&G is also committed to enhancing educational programs. Additionally, minimizing costs while developing high-quality products can reduce waste. Sugar factories that diversify into distilleries, utilizing molasses, provide a good example of fulfilling this responsibility.
Individual objective of management
Fostering a positive work culture, providing opportunities for career development, promoting work-life balance, recognizing and rewarding employee achievements, and fostering open communication. By prioritizing these personal objectives, management can create a motivated and engaged workforce that is committed to achieving the organization's broader goals.
Ensuring that your employees receive adequate financial support, including competitive salaries, bonuses, incentives, and other benefits. Additionally, recognizing and appreciating your employees' individual, team, and societal contributions to the organization and providing appropriate rewards and recognition based on their skills, maturity, and social standing.
Offering flexible work hours and the option to work remotely can help your employees maintain a healthy work-life balance, leading to increased productivity and job satisfaction.
Creating a positive work environment is essential for employee satisfaction and productivity. Offering amenities such as recreational facilities and playgrounds can go a long way in achieving this goal. At MRF, employees also receive Consumer Society benefits for their families, which demonstrates the company's commitment to meeting personal objectives and promoting work-life balance.
