Innovation is again an important objective of a business. For example, seeking to increase market share, may lead to lower profits in the short-term, but enable profit maximisation in the long run. No doubt profit is driving force in undertaking any business activity but not the only objective of business. Therefore managers may create a minimum level of profit to keep the shareholders happy, but then maximise other objectives, such as enjoying work, getting on with other workers. Thus the business has to ensure in its own interest as the supplier is the basic link between the business and community. In this, complex and competitive industrial and commercial world everyone tries to woo the customer. – A visual guide The ‘requisite organisation’ of the workplace within which high levels of employee satisfaction are enabled is a different organising paradigm to what passes as current orthodoxy. In fact this sis norm of a business unless this is not ensured the survival and development of the business may not assure in this complex business world. In many firms, there is a separation of ownership and control. Whatever may be the type of business the suppliers form the basis of the entire business community. Supplier supply all other components and accessories to the manufacturing organization, which in turn ensures smooth and timely production. If they continue to come, do not alter the patronage, are satisfied with goods, services, business dealings and behavior. If we regress to primitive behaviour in our workplaces, complexity is over-simplified, short-term ‘fire-fighting’ (by charismatic heroic ‘leaders’) becomes commonplace, bullying and harassment are daily events, fear suffuses the workplace limiting individual decision-making etc. Customers are the source of revenue and profit. You are welcome to ask any questions on Economics. not sacking them) This is the problem of separation between owners and managers. Sometimes there is an overlap of objectives. Fair Deal to Workers. Higher profit makes the firm less vulnerable to takeover. Inevitably, the human organising scheme of Requisite Organization is strongly resisted by people in the grip of their primitive organising instincts. It helps the business prioritise what has to be done to achieve the success it wants. More customers mean a good turnover and a good turnover means a fair amount of profit to the business. Profit to investors must be ensured which should be fair one according to the prevailing market conditions. Generally objective of business is to make profit and avoid loss. Innovation of goods and services customers policies, production quality, service facility etc. They usually stick to the business and tell their relatives and friends about the business they have good relations. Economic Objectives of Business. In fact, if you dip into ‘Requisite Organization’ (Dr Elliott Jaques), you will quickly see that work satisfaction is not only desirable from the employee’s point-of-view, but also necessary for the employer to get the best, willing effort, from the employee – which is THE productivity button. Firms often seek to increase their market share – even if it means less profit. A firm may incur extra expense to choose products which don’t harm the environment or products not tested on animals. 1) Earning Profit Business needs objectives, without objectives the business is like a car without headlights driving blind. Business activities are essentially measured in terms of money, all measurements must show profit. It is a chain reaction. Business therefore, must aim to allow them a fair amount of return so that their interest must remain in the business. Requisite Organization (RO) has been proven time and again (in some surprising large organisations around the world). Essay on Relationship Between Education and Culture, Classification of Accounts, Personal, Real & Nominal …, Importance of Audio Visual Aids in Teaching …, Long Run Equilibrium in Perfect Competition. Innovation. Sometimes there is an overlap of objectives. E.g. Requisite Organization (although having research and practice roots going back 70 years) is a body of work aimed at satisfying the legitimate business needs of the business owner AT THE SAME TIME as satisfying the legitimate psychological needs of human beings for work. Examples of alternative business objectives An increasing number of companies are moving away from profit maximisation and are refocusing their priorities towards the welfare of their suppliers, employees and the planet: Revenue maximisation (occurs where marginal revenue = zero) Increasing and protecting their market share