🔄 DAY 1 RE-KNOCK: The Balancing Act
In our series opener, we established that Management is a continuous process of five inter-related functions. We unlocked the two vital pillars: Effectiveness (completing the task on time) and Efficiency (completing the task with minimum cost). Remember, a manager who finishes work on time but wastes resources is effective but inefficient. To achieve excellence, one must strike a perfect balance between the two. Today, we move from 'how' we manage to 'why' we manage—the actual targets of management.
Why Do We Manage? Understanding the Purpose
Every activity performed by a manager must have a destination. Whether it is a large industrial giant in the Adityapur Industrial Area or a newly launched startup in Lalpur, Ranchi, management is always aimed at achieving specific results. These results are what we call Objectives. Objectives are the ends toward which the activities of an organization are directed. In any organization, there are different objectives and management has to achieve all of them in an effective and efficient manner.
Management objectives are broadly classified into three categories: Organizational, Social, and Personal. Let us dive deep into each, ensuring we use the exact terminology required for your board exams.
1.2 Objectives of Management
Management is responsible for setting and achieving objectives for the organization. These are the main objectives aimed at the prosperity and growth of the business itself. Since an organization is an economic entity, its primary objectives are economic. The main aim of management is to utilize human and physical resources in such a way that it fulfills the economic goals of the business.
These economic objectives consist of three essential stages that every business must pass through:
- Survival: The most basic objective of any management is to ensure that the organization survives in the long run. An organization can only survive if it earns enough revenue to cover its costs. In a competitive market, staying alive is the first victory.
- Profit: Mere survival is not enough. Profit is the "cushion" that allows a business to meet future risks and cover costs. It is the reward for risk-taking. Profit is the primary incentive for the owners to continue the business.
- Growth: A business needs to add to its prospects in the long run. To remain relevant, management must exploit its potential for expansion. Growth is measured by an increase in sales volume, the number of employees, the number of products, or capital investment.
An organization is a part of society. It uses the resources of society—land, labor, and capital. Therefore, it has a moral and social obligation to fulfill the expectations of society. Social objectives involve the creation of benefit for society. This is expected from both business and non-business organizations.
For your board exams, you must remember the specific social objectives mentioned in the NCERT:
- Using environmental-friendly methods of production.
- Providing employment opportunities to the disadvantaged sections of society.
- Supplying quality products at reasonable prices.
- Providing basic amenities like schools and crèches to the community.
In today's world, organizations like Tata Steel are globally respected because they have integrated social objectives into their core strategy for over a century. They don't just make steel; they build hospitals, schools, and parks. This builds immense trust and brand value.
Organizations are made up of people. These people come from different backgrounds, have different personalities, and join the organization with their own set of goals. Management must reconcile personal goals with organizational objectives to ensure harmony. If employees' needs are ignored, they will lose motivation, leading to poor productivity.
Personal objectives address three types of needs:
- Financial Needs: Providing competitive salaries, bonuses, and perks.
- Social Needs: Peer recognition, respect from colleagues, and a sense of belonging.
- Higher-Level Needs: Opportunities for personal growth, training, and career development.
The Manager's Challenge: Creating Harmony
You might wonder: "If a company gives too much salary (Personal), will its profit (Organizational) go down?" or "If a company spends too much on eco-friendly machines (Social), will it survive?"
A veteran manager knows that these objectives are not contradictory; they are interdependent. A happy employee (Personal) is more productive, leading to higher Profit (Organizational). A company with a great social reputation (Social) attracts more customers, leading to Growth (Organizational). The secret of management lies in achieving all three simultaneously.
Professional Insight: Identifying Objectives in Case Studies
| Clue in the Text | Identify as |
|---|---|
| Opening new branches, increasing products | Growth (Organizational) |
📝 Day 2: Test Your Understanding
Click to view Answer & Logic
Correct Answer: (c) Organizational Objective.
Logic: These are the economic goals aimed at the prosperity of the business itself.
Click to view Answer
Correct Answer: (c) Social Objective.
Logic: It involves the creation of benefit for the community/society, which is the core of social objectives.
Click to view Master Solution
1. Fulfilling Organizational Objective (Growth): The company has seen a 30% increase in employees and started two new departments. These are indicators of expansion/growth.
2. Fulfilling Personal Objective: By introducing the "Best Employee of the Month" award, they are addressing the social needs (recognition) and financial needs of the employees.
3. Neglecting Social Objective: The noise disturbance created by the cooling systems indicates that the company is failing to be environmental-friendly and is causing inconvenience to the community.
📅 TOMORROW'S TEASER: Why is management the "Life-Blood" of an organization? We explore the Importance of Management tomorrow!
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