8 Most Important Features of Business Objectives

8 Most Important Features of Business Objectives

1. Objectives should be understandable:

In order for a company to establish a business objective, it must first understand where it stands and where it has been. It then determines what its goals are and how it will attain them.
Once the objectives are set, it must be properly understood by the team members because it helps in proper implementation for achievement of the objectives.
The business objectives should be made in an understandable way. This helps in communicating your objectives to your investors, employees, partners etc. Without this communication of business objectives, it becomes very difficult to reach them.

2. Objectives should be measurable:

Objectives of an organisation must be measurable. Unless the objectives are set the organisation will not be able to compare the actual performance with the planned target. Objectives give the business a clearly defined target.
It also enables the business to measure the progress towards to its stated aims. To avoid this, organisation must state the objectives that are capable of being measured in terms of performance.

3. Hierarchy of objectives:

Hierarchy means level. Business objectives are structured according to its hierarchy. All the objectives are not equally important. It should be achieved according to its priority and importance. The most important objective should be achieved first.
For example:
In a hierarchy survival of a business firm comes first following growth and then the prestige and goodwill.

4. Multiplicity of objectives:

Business does not have a single objective. They are multiple in natures. The primary objective of every business is profit followed with customer satisfaction. Business also has objectives towards society that comprises of employees, shareholders, creditors, government etc. Business objectives are classified as organic objectives, economic objectives, social objectives, human objectives and national objectives.

5. Achievable:

Business goals must be achievable. The organisation should frame those goals, which can be achieved taking into consideration its capabilities and resources. The objective must be feasible enough to keep team members motivated to strive towards its achievement. While setting the objectives, the organisation must concentrate on the limitations also.

6. Objectives should be specific:

Objectives must be specific in terms of time, quality and quantity. Specific objectives help in the accomplishment of those objectives in the specified time frame and resource availability. If the objectives are specific it gives precise results.
Specific objectives help in understanding the objectives in the correct manner. Specific objectives help the firm to understand where they stand with respect to the completion of the objective.

7. Quantitative and Qualitative:

Objectives can be expressed in quantitative and qualitative terms i.e. volume, number or value terms, increase in sales, market share, rate of production etc. are the examples of quantitative objectives. Some objectives are qualitative in nature such as goodwill, worker's job satisfaction etc.

8. Flexible:

Flexibility means, 'that keeps on changing'. Business objectives should be flexible. It must not be rigid. Business environment keeps on changing. Therefore the objectives should be changed or modified according to the changing situation. The objectives must be able to reframe in the light of changes in the environment.

Importance of Business in Modern Society

The existence and expansion of business are justifications of the importance of business. Business provides a lot of services to the human beings that highlight its significance. These services are as follows:

1. Supply of Goods and Services: Business provides goods and services to the society. Business produces different products, which are sold or supplied to the society. The creator created and creates things, but processing, the individuals or business does reprocessing and preservation and ultimately new utility is created. So business provides goods and services to the society.
2. Harnessing Capital and other Resources in Production:  Business collects the drifts of savings from different individuals, especially through banks and financial institutions and employs those in productive activities and, thus, harnesses capital in economic activities to utilize natural resources in utility creation or value addition, and consequently, helps production, employment and resource utilization.
3. Self-employment and Provision of Employment: Business provides employment to the businessman. Further, in the production, distribution and services of business a large number of individuals are employed by the business organization and income generation occurs for them and others.
4. Preservation of Natural Resources: Business creates new utility to the natural resources by preservation and value addition. Different new products are created by business operation, without which a lot of natural resources would have been wasted.
5. Research, Development and Innovation: Business continuously makes research on alternative uses of resources, develops new products and methods, and makes new innovations.
6. Income Generation: Business generates income for the individuals. Business Utilizes factors of production like land, labor, capital and organization; and generate incomes like wage, rent, interest and profit to the factor-owners.
7. Interesting Natural Income: Business preserves natural resources, and creates new utility. Consequently, national income (NI), per capita income(PCI), gross domestic products (GDP), etc, increase.
8. Contribution to Social Development: Business contributes to the social development also. Business growth increases national income, which contributes to social development. Profitable corporations provide a lot of money as corporate taxes in the hand of the government, which the government uses in the development activities of the country. Besides, modern corporate business contributes a lot for Corporate Social Responsibility (CSR), which ultimately enhances social welfare.
9. Contribution in the Development of Education, science and Technology: Business contributes toward the development of education, innovates new technology and applies theory (s) of science for better production and human welfare.
10. Development of International Relations: Business imports necessary commodities and exports new or surplus products to foreign countries. In this way, a foreign relation develops.

What is the importance of business in life?

Business is what sustains an economy. Without an economy of any kind, there would be no wealth exchange. That is to say, in a sense, without business, You cannot buy goods or services of any kind, and must create anything that you use. Life may be manageable without the ability to gain or lose something you cannot create. But it would be much more difficult.