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Areas in which organization objectives should be established

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i) Market standing
This is the position of an organization where all stands relative to its competitors.
According to competitive theory a firm can be a market leader, challenger, market nicher
or a market follower. It is therefore important for management to set one of the organization objectives to indicate targets or position of the organization within a given industry.

ii) Innovation
This is any change made to improve methods of conducting organization business. One of the original objectives should indicate the target the firm is in the area of innovation dinning forces change in taste and preference, technology products has maturated etc.

iii) Productivity
This is the level of goods and services produced by an organization relative to the resources used in the production process. Organization that uses fever resources to produce a specified level of products is to be more productive than those that require more resources to produce at the same level.

iv) Resource level
This is the relative amounts of various resources held by an organization such as inventory, equipment and cash. One of the objective should indicate how much of each theses resources should be held at any given time.

v) Profitability
This is the ability of an organization to receive beyond the expenses necessary to generate
the revenue. Most organization commonly has objectives in treating the level of profitability that they are seeking.

vi.) Managers’ performance and development
A quality of managerial staff performance and the rate at which manager are developing personally is critical to the long term success of the organization. Two groups of employees (middle and low level managers) should be trained and developed to take up responsible position in the future this makes it necessary to establish objectives in this area.

vii) Worker performance and altitude
The quality of non-manager’s staff performance is also critical to the long term success
along with the feelings about their work. They should also be trained in order to improve
their skills making it necessary to establish objectives in these areas.

viii) Social responsibility
This is the objection of an organization or a business to help to improve the welfare of
society while it is doing business. Only a few years ago selling objectives in this areas
would have been controversial. Today however, it is common business practice to set objectives in areas of social responsibilities.

Titany answered the question on October 19, 2021 at 08:39

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Areas in which organization objectives should be established

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