SETTING BUSINESS GOAL
All businesses have objectives and these are the goals of the business. They are the outcomes or targets that the business wants to gain in order to achieve its aims. Business objectives can be long-term objectives or short-term objectives
Factors that influence the choice of objectives
- Size and status of the business
- Form of ownership
- Long-term and short-term objectives which might differ
- The changing market trends
- The degree of right involved
- The corporate culture or the business culture
- The legal requirements
Classification
1. Economic objectives/financial objectives
Business being an economic objective is the prime goal of the business since they are economic in nature. Some of the economic objectives include:-
Profit maximization, creation of customers, innovation and utilization of scarce resources
2. Social objectives
They include:-
i) Supply of quality products and services
ii) Avoidance of anti-social and unfair trade practices
iii) Generation of employment to improve living standards
iv) Welfare of employees i.e. good working conditions
v) Avoidance of environmental pollution
vi) Contribution of general welfare of the society
3. Human objectives
Since efficiency and success of an enterprise depends on motivation and ability of its employees, the business must have human objectives to safeguard the interests of its employees.
They include
i. To offer reasonable remuneration
ii. To provide better working conditions to employees
iii. To provide job satisfaction
iv. To provide growth and promotional opportunities to employees
v. To provide future security to through payment pension scheme
vi. To improve competences of employees through training and development programmes
4 National objectives
Business being part of a nation has an obligation towards the nation
i. To improve social justice
ii. To produce according to national priorities
iii. To increase export and add foreign exchange
iv. To find out better substitutes for imports
impact of motivation at work place to the enterprise
i. Increased quality of output
ii. Quality on goods and services
iii. Conclusive working environment
iv. Creation of good corporate image
v. Easy supervision of subordinates
vi. Low labor turnover
vii. Proper utilization of available resources by employees.
viii. Achievement of goals/objectives set by the enterprise
ix. Encourage employee’s employer to be creative and innovative thus generating ideas
x. It increases profit margin of the enterprise
xi. Improvement of working conditions
xii. Reduces time wastage due to employee commitments
xiii. The enterprise retains the competent employees
xiv. Encourages delegation to the subordinates
xv. Increases customers market)
xvi. Decision making to faster due to corporation
xvii. Channels are enlarged
xviii. Employees do not resist to change
