Functions of business
- Organizing function:
It helps to organize all the activities. It organizes men, Machine, materials, money and methods. It performs different activities and all activities are organized properly
- Financing function:
It is related to money. It helps in maximum utilization of resources. Bank is a financial company. All the activities related to money are defined in this function.
- Production function:
The main function of business is to produce goods and commodities and transfer them to right place at right time. It helps to complete needs of human beings.
- Distributing function:
It helps in the transfer of goods/services from producers to customers. It transfers right product at right time in right place.
- Personnel function:
It deals with human activities. It is related o the utilization of people to perform different activities. It is also called staffing function. It helps in management of resources.
- Managing function:
It helps in management of business. It includes planning, organizing, controlling, coordinating, decision making and so on. It helps making activities of people effective.
- Research and development function:
It helps in improvement of product. It works under the taste, desire and preference of the customers. In it various marketing, strategies, skills, knowledge and experts are used. Research and development is the main way to achieve profit with customer satisfaction
Objectives of business
- Economic objectives
The economic objectives are related to earning profit through customer satisfaction. It is to provide quality goods with reasonable price. Economic objectives can be defined in terms of money too. Some of the major economic objectives are:
- Earning profit:
The main economic function of business is earning profit. It includes supply of quality goods and services to gain profit. T is done for the survival of business and it is also reward for the investors. It is required for expansion if business
- Production of commodities:
Production of goods and services are to be done according to the customer demand and desired. Supply of commodities is also to be done according to needs of customer.
- Creation of market:
Business can provide service only if demand of customers are fulfilled. When production is made according to the requirements of the customers then there is creation of new customer which creates new market. Creation of market helps in enlargement of production and promotes business expansion too
- Technical improvement:
Use of modern technology is the base for successful operation o business. When modern tools, techniques and technologies are used then there is production of quality goods. Changes are the basic factor for flexibility and changes in terms of working methods is the main objective of business
New ideas, methods, men, tactics and technology create the ways of better production and services. It helps in survival of business too.
2. Social objectives
Business is operated in society and use resource available in society. This is known social objectives. It fulfills social expectation. All business operations are established in society, grow in society and fulfill all its expectation in society. Some of the major social objectives of business are:
- Supply quality food:
It provides better quality of goods and services by charging reasonable price. It provides right product at right time in right place. It involve in fulfillment of social objective.
- Utilizing resources:
A business house can’t continue its operation without utilizing the resources available in the society. But there must be proper utilization of resources and no any destruction in name of utilization. Maintenance of environment is must.
- Providing employment:
There are many people in the society. Human needs are the basic need for operation of business. Many personnel are require dot fulfill the job of a business. Therefore a business house without nepotism and favoritism must employ the human from the society and provide employment opportunities to the optimum level.
- Avoiding social stigma:
Big industries are the cause of environmental pollution. Constant noise, smoke from the industries produces noise and air pollution. This is the social objective of the business to control pollution and wastages. There must be establishment of industries far from residential areas.
- Human objectives
Human objectives are performed by different human activities. It is related with satisfaction of employees, investors and other personnel. Some of the major human objectives are
- Satisfaction of employees:
The success of business depends on employees’ performance. It provides better working environment to satisfy the employees. It provides salary, bonus, provident funds and job security. It also provides financial and non financial supports.
- Payment to creditors:
Creditors means supplier who supply goods and services. It is the objective to make duly payment. Satisfaction of creditors helps in further expansion of business.
- Satisfaction of customers:
Production of goods and services are to be done according to the customer demand and desired. Supply of commodities is also to be done according to needs of customer. It provides better quality of goods and services by charging reasonable price
- Satisfaction of shareholder:
It returns to investors the amount they have invested in business in the name of profit earn. They should be given reasonable returns of their investments. The objectives are to provide reasonable rate of return to shareholder. It also provides the information about plan of business.