what are the alternative objectives of a bussiness firm (non-financial objectives of a firm)?
|
02-28-2013, 02:50 PM
Post: #1
|
|||
|
|||
what are the alternative objectives of a bussiness firm (non-financial objectives of a firm)?
Ads |
|||
02-28-2013, 03:00 PM
Post: #2
|
|||
|
|||
A business may have important
non-financial objectives which will limit the achievement of financial objectives. Examples of these are summarised below: Welfare of employees The provision of employee welfare is an important objective; this relates to issues such as wages & salaries; comfortable and safe working conditions, training and development; pensions etc. The value of many businesses is critically-dependent on attracting and retaining high quality employees – which makes managing the welfare of such people even more important. Welfare of management Management can, and do set objectives which are essentially about their own welfare. These include objectives in relation to pay and conditions. Relationships with Suppliers Responsibilities to suppliers are expressed mainly in terms of trading relationships. Large businesses often have considerable buying power over their suppliers – which should be used with care. Supplier objectives would include those relating to the timing of payment and other terms of trade. Responsibilities to Society Businesses increasingly aware of their overall responsibility to society at large. The term that is often used is Corporate Social Responsibility. This includes a business complying with relevant laws and regulations (e.g. health and safety), minimising harmfulv externalities (such as pollution). Employee Engagement and Satisfaction Focusing on employee satisfaction allows you to create a workforce of engaged, loyal employees. With increased employee morale often comes better attendance and effort. By aiming to improve the workplace for your employees, you show them that you care about more than simply making money. Specific objectives related to employee satisfaction include giving staff greater responsibility, rewarding exceptional work, creating a positive work environment, promoting teamwork and communicating openly with your employees. Quality The quality of work produced by your company affects your reputation and amount of business you receive. Whether you sell a product or a service, you want every sale from your company to be top-notch. Consistency is another key factor in the quality of a company. When you offer consistently high-quality products or services, your company gains a positive reputation that potentially leads to more business and repeat customers. Create standards for the items you produce or sell. Establish guidelines for the services you provide, particularly if you have multiple employees providing the service. Customer Service Along with a quality product or service, aim to provide your customers with a positive experience every time they interact with your business. Making your customers feel valued encourages them to give your company additional business in the future. Improved customer service is possible through employee training and high expectations. Monitor your employees' interactions with customers. Surveys and informal conversations with employees help you assess the level of customer service you currently provide and areas in need of improvement. Public Relations. Another non-financial area for goals is your company's public image. Improving the way the general public views your companyb can mean increased business and stronger relationships with the community. Potential objectives include to maintain a professional image, establish a positive social media presence and give back to the community. Donating time and money to charitable organizations helps establish your company as a fixture in the community. Ads |
|||
« Next Oldest | Next Newest »
|
User(s) browsing this thread: 1 Guest(s)