Which of the following statements about the objectives of management is/are correct?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → To survive, an organisation must earn enough revenues to cover its costs.
Option (1) To survive, an organisation must earn enough revenues to cover its costs. — Correct. Survival is the basic objective of any business. To survive, an organisation must earn enough revenue to cover its costs.
Option (2) Survival is essential for covering the costs and risks of the business. — Incorrect. It is profit that covers the costs and risks of the business. Survival needs only enough revenue to cover costs.
Option (3) Giving employment opportunities to the underprivileged sections of society is a part of the personnel objectives. — Incorrect. Giving jobs to the underprivileged creates benefit for society, so it is a social objective. Personnel objectives are about the employees’ own needs, such as salaries, peer recognition and growth.
NCERT (2026-27 Edition): “(i) Organisational Objectives: Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business. These are survival, profit and growth. “(iii) Personnel objectives: Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs such as personal growth and development. Management has to reconcile personal goals with organisational objectives for harmony in the organisation.”
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