1. MISSION & OBJECTIVES
IN PLANNING

2. An organization’s mission indicates
exactly what activities the organization
intends to engage in now & future
Mission of the company says what it can
do for the country or society
Purpose suggests how this contribution
can be made

3. FORMULATION OF MISSION
Organizational mission encompasses the
broad aims of the organization

4. Characteristics of mission statement
 Missionshould be clear, both in terms of intentions and
words used
 It should be feasible, neither too high nor too low
 Shouldbe precise but self explanatory, neither too
narrow nor too broad
 Should be distinctive-in terms of organisation’s
contributions & how it can be made

5. "We create happiness by providing the
finest in entertainment for people of all
ages, everywhere."
"eBay's mission is to provide a global
trading platform where practically
anyone can trade practically anything."
"We are a global family with a proud
heritage passionately committed to
providing personal mobility for people
around the world."
"We have absolute clarity about what
we do ‘WE SELL HIGH QUALITY
FOOD AND BEVERAGE PRODUCTS.’
Our success will ensure: customers will
build their business, employees build
their futures, and shareholders build
their wealth."
"To make the world's information
universally accessible and useful"

6. Objectives
 More precise and used to specify the end results which
an organization wants to achieve
 Objective can be defined as intended end result that an
organization desires to achieve over varying periods of
time

7. Features:
 Each organization has an objective
 It may be broad or specifically mentioned / long term
or short term
 Clearly defined
 Have hierarchy
 Have social sanction
 Can have multiple objectives
 Organizational objectives can be changed; old by new
ones

8. Hierarchy of objectives
 From broad aim to specific individual objectives
 The process of assigning a part of a mission to a
particular department and then subdividing the
assignment among sections and individuals create a
hierarchy of objectives

9. Role of objectives
 Defining an organization
 Directions for decision making
 Performance standard
 Basis for decentralization
 Integrating Organization, Group and Individual

10. Objective setting
Objectives must be clearly specified
Must be set taking into account the various
factors affecting their achievement
Consistent with organizational mission &
consistent with time
Rational and realistic rather than idealistic

11. Objective setting
Achievable
Should yield specific results when achieved
Should be desirable for those who are
responsible for the achievement
Start with ‘to’, followed by an action verb.
Periodically reviewed

12. Eg:
“Our objective is to maximize our profit”
“Our objective is to offer best and
cheapest product”
“We will go to great length to develop new
ideas”

13. Management By Objectives (MBO)
 Coined by Peter Drucker in 1954
 It focuses sharply on the objectives or results which a
manager is expected to achieve within a specified
period.
 It emphasizes participative management, an approach
which provides high motivation to individuals in an
organisation

14. “MBO is a comprehensive managerial system that
integrated many key managerial activities in a
systematic manner, consciously directed
towards effective and efficient achievement of
organizational objectives”

15. Process of MBO

16. 1. Setting of organizational purpose and objectives
2. Key result areas
3. Setting subordinates’ objectives
4. Matching resources with objectives
5. Appraisal
6. Recycling

17. Benefits of MBO
 Better managing
 Clarity in organizational action
 Personnel satisfaction
 Basis for organizational change

18. Problems and limitations of MBO
 Time and cost
 Failure to teach MBO philosophy
 Problems in objective setting
 Emphasis on short term objectives
 Inflexibility
 Frustration

19. THANK YOU