Aims of business organization mean where business wants to see their-self, the destination of the business. A primary aim of every business is to provide value to their customers and make profits out of it. It states the purpose of business.
Objectives of business organization state measurable targets of the business of how they achieve business aims. These must be SMART in order to achieve the objective of the business.
S – Specific: objective means what business does to achieve their specific goals, i.e. A company is an objective to generate 30% more sales in December, December is a specific period.
M – Measurable: Measurable means to put the value to the objectives of the business, i.e $50,000 in the next four months.
A – Agreed: Agreed means objective should be possible achieve.
R – Realistic: Objective should be realistic that would be challenging.
T- Time specific: Objective should have a deadline to achieve. Because it motivates to achieve the goal.
BUSINESS OBJECTIVES DEFINITION
According to Louis Allen,
“Objectives are goals established to guide the efforts of the company and each of its components.”
TYPES OF BUSINESS OBJECTIVES
Economic objectives of the business are referred to the making profits for the business, and to continue in the future. economic objectives also include creating new customers and providing regular value to the customers and make the profit out of it.
Social objectives of the business are those objectives which will be achieved for the upliftment of the society. Business uses the resource of the society so it is a liability of the business to return something to society. Social objectives of business include the supply of quality goods & services etc.
Human objectives mean to fulfill the exceptions of the employees to provide them with high-class training, give them benefits of the business. Human objectives also include social and psychological satisfaction of employees and development of human resource.
People do business in the country, so it is the responsibility of the business to provide benefits to the nation to help the development of the nation. Business activities should be conducted keeping these goals of the country in mind, which may be called national objectives of the business.
Business should provide their services and goods to the other nations because world id getting connected. So, there should be global objectives of the business.
IMPORTANCE OF BUSINESS OBJECTIVES
- Direction business objectives show the direction to the company to work on the right path.
- When the business has pre-planned objectives, so business can save their time and can work in order to achieve their objectives.
- When objectives are pre-planned. it does not lose the motivation of employees, help them to get motivated.
- it reduces wastage i.e cost, time and resources.
BUSINESS OBJECTIVES EXAMPLES FOR SMALL BUSINESS:
1. Financial Goal:
The objective should be to minimize the profit of the organization. i.e, In Christmas company, will sales $10,000. it is an example of a financial goal.
2. Goodwill Goal:
Goodwill means to create goodwill for the company. i.e, a company has set to grow their goodwill in a short period, then the company will give a huge discount on their products.
3. Society :
sometimes business gives the value to the society to grow their business. i.e, a company is targeting a particular group of society then the company arranges programs to influence it.
AIMS OF BUSINESS ORGANISATION :
- the first aim of any business might be to provide value to their customers.
- Second, to earn maximum profit out of it.
- Goodwill, the third aim would be to run in the long run.