Organizational Purposes of Businesses - Coursework Example

Since most organizations essentially seek profits, therefore, making a maximum profit becomes the most important objective of the owners. However, there are some organizations like charitable organizations whose principal purpose is to provide service to people.

At the beginning of any business, an organization has no goodwill in the market nor does it have loyal customers. Therefore, in the initial stage, the key objective remains survival which can be achieved through good marketing and promotional strategies. With the growth of the business, profit-making becomes the most important objective. In most organizations, it is the owners who decide what the objectives should be for a given period; however, there are other stakeholders who can also give their views and opinions.

Stakeholders are any group of people who have an interest in the activities of the business organization which can be managers, employees, suppliers and customers. When a stakeholder’s interest is considered then it is known as stakeholder consideration like owners giving up part of their profits to pay bonuses to the employees in order to motivate them to focus harder on fulfilling the objectives of the concerned organization (BBC, 2014). The objectives of a business organization are subjected to change for both internal reasons, like business expansion, and external reasons, such as economic depression.

When a profitable business gets negatively affected by economic depression like decreasing sales, it may change its goal from profit maximization goal to survival as it may become difficult to maintain the same level of output. Organizational objectives and missions are some of the vital aspects of managerial issues today. With concrete and well-defined goals, managers can rightfully execute business activities in a purposeful manner. Basically, the objectives of an organization act as targets for managers based on which they acquire and utilize resources to reach a desired level of output. Fulfilment of organizational objectives is a key step towards the accomplishment of the missions of the organization. In any organization, irrespective of whether it is a profitable venture or not, there should be a proper structure and effective strategies.

Within a proper structure, the daily activities of an organization can be smoothly executed. It is how an organization efficiently coordinates human resources and technology. An efficient organizational structure indicates good strategies, effective communication channels, sound policies and other factors. If all these elements are not properly coordinated then there will be a lack of coordination and motivation among the staff resulting in non-accomplishment of the organization’s goals and objectives. Such failures indicate that the management body of the organization is not a strong one.