Objectives pursued by, organizations should be directed to the satisfaction of demands resulting from the wants of mankind. Therefore, the determination of appropriate objectives for organized activity must be preceded by an effort to determine precisely what their wants are. Industrial organizations conduct market studies to learn what consumer good should be produced. City Commissions make surveys to ascertain what civic projects would be of most benefit. Highway commissions conduct traffic counts to learn what constructive programs should be undertaken.
Organizations come into being as a mean for creating and exchanging utilities. Their success is depends upon the appropriateness of the series of acts contributed to the system. The majority of these acts are purposeful, that is, they are directed to the accomplishment of some objectives. These acts are physical in nature and find purposeful employment in the alteration of the physical environment. As a result, utility is created, which through the process of distribution, make it possible for the cooperative system to endure.
Before the Industrial Revolution, most cooperative activity was accomplished in small owner-managed enterprises, usually with a single decision maker and simple organizational objectives. Increased technology and rapid growth of industrial organizations make necessary the establishment of a hierarchy of objectives. This, in turn, required a division of management functions until today a hierarchy of decision maker exist in the most organizations.
The effective pursuit of appropriate objectives contribute directly to the organizational efficiency. As used here, efficiency is the measure of want satisfying power of a cooperative system as a whole. Thus, efficiency is the summation of the utilities received from the organization divided by the utilities given to the organization, as subjectively evaluated by each contributor.
The function of the management process is the delineation of organizational objectives and the coordination of activities toward the accomplishment of these objectives. The system of coordinated activities must be maintained so that each contributor, including the manager, gains more than he contributes.
The main purpose of an organization is to satisfy the demands of consumers. For organized activity, it is necessary to ascertain what their demands are. Organizations, in order to facilitate the system, come into being for exchange of utilities in the best possible and judicious way. So, a series of act is aimed at fulfilling the objectives. It was the time before Industrial Revolution, that small organizations with single decision make and very limited objectives were established. However, thanks to technological developments, that transformed such organizational model which failed to cope up the raising customers demands. After it, a system of hierarchy was established. Organizations efficiency improved through fulfilling of relevant goals by listing all goals respective to their importance and significance. The function of management process should be to facilitate the attainment of organizational objectives and seeking the objectives. This model of organization proves itself both efficient and effective as it has the tendency to meet the raising and varying demands of customers for which multiple stage of decision-making is the need of time. However, there is a lot of space for further upgradation and improvement in it, so that a more comprehensive model could be explored.
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