Business organizations are economic entities. They are established to make profits. These organization purpose goals, which may be different from other types of organization s. however, most of the features of organizational goals discussed here are common to all organizations. A brief mention of these features of organizational goals is made here in the context of a business organization.
Ø Survival: survival is defined as “the perpetuation of existence”. It is the goal of every organization. Organizations, however, survives and perpetuate their existence only when they are able to meet objectives and satisfy their stakeholders interests.
Staying alive should be the basic minimum goal.
Ø Growth and competitiveness: growth is another objective of organizations. Growth indicates expansion in activities, assets, manpower market share, and so on. Organizations can ensure their growth and competitiveness through new ideas, new products, new technology, new market and new investments. Growth is in fact a source of economic, social and political power of an organization. Opportunities are greater in a growing organization. An organization’s growth is tied with its survival and profitability.
It is all-round growth in terms of profit, sales and market share over a period of time. Most organizations have this goal. Competitiveness ensures growth.
Ø Stability: stability is essential for organizations. They need to safeguard and consolidate their existing strengths and capabilities to utilize fully the commitments of resources and to achieve efficiency. A stable organization minimizes tension, reduces conflict, and adjusts with emerging environment.
Ø Efficiency: efficiency is concerned with the balanced use of resources. Organizations strive to attain operational efficiency for their existence. Efficiency lies in rationally choosing appropriate means to achieve goals, doing things in the best possible manner, and utilizing resources in a most suitable combination to get higher productivity.
Ø Profitability: profit is a major goal of a business organization. Profitability guides the direction of every viable business organization. Profit is also the source through which the need for innovation, diversification, creativity satisfaction and social obligation can be met. Profit brings image and status to a business organization. It is, therefore, a hallmark of business success.
It is reduction in cost of operations to increase productivity. Competition is generally based on price. Price is affected by costs.
Ø Social responsibility: organization brings a part of society have responsibility towards its stakeholders. The various groups who have stake in the organization comprise consumers, employees, government, investors, supplies and the society at large. Organizations not fulfilling their social obligation are being criticized and questioned. Organizations, therefore, must be socially responsible for their continued existence.
It is safeguarding interests of stakeholders. They can be owners, suppliers, customer’s employees, government and society. This goal is getting very important for business organization.
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