“A business needs to add to its prospects in the long run. For this, it is important for the business to grow”. Which Objective of Management is highlighted here?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Organisational Objective
Option (1) Personnel Objective — Incorrect. Personnel objectives are about the employees’ own needs: good pay, recognition, chances to grow.
Option (2) Social Objective — Incorrect. Social objectives are about benefits to society, such as using eco-friendly methods and giving jobs to weaker sections.
Option (3) Legal objective — Incorrect. Obeying the law is expected of every business, but the aim of growing the business is not about law. The objectives of management are classified as organisational, social and personal.
Option (4) Organisational Objective — Correct. The organisational objectives are survival, profit and growth. A business must grow to keep its place in the industry, and management must make full use of its growth potential.
NCERT (2026-27 Edition): “(i) Organisational Objectives: … 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. Survival: The basic objectives of any business is survival. Management must strive to ensure the survival of the organisation. In order to survive, an organisation must earn enough revenues to cover costs. Profit: Mere survival is not enough for business. Management has to ensure that the organisation makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for covering costs and risks of the business. Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. To remain in the industry, management must exploit fully the growth potential of the organisation. …” |