This presentation discusses about in Principles of Management

1. OBJECTIVES AND
SETTING OBJECTIVES
R.ArunKumar,AP/Mech,RIT

2. DEFINITIONS:
 Objectives are those ends which the organizations seeks to
achieve by its existence and operations.
 Objective is a specific commitment to achieve a measurable
result within a specified time.
R.ArunKumar,AP/Mech,RIT

3. Characteristics of Organizational Objectives:
 Multiplicity
 Hierarchy
 Networking
 Time dimension
 Quantifiable and non – quantifiable objectives.
 Social sanction
R.ArunKumar,AP/Mech,RIT

4. Characteristics of Organizational Objectives:
1. Multiplicity:
 Multiplicity of objectives trigger the problem of fixing
priorities and harmonizing them.
R.ArunKumar,AP/Mech,RIT

5. Characteristics of Organizational Objectives:
2. Hierarchy: (Top – down and bottom – up approaches)
 Objectives are framed across different levels of an
organization.
 e.g. achieving profit, improving shares – top level management
cost reduction, waste management – middle level management
reducing absenteeism, maintenance – low level management
R.ArunKumar,AP/Mech,RIT

6. Characteristics of Organizational Objectives:
3. Networking:
 Objectives are intertwined and networked with one other.
 e.g. Marketing, HR and Production.
R.ArunKumar,AP/Mech,RIT

7. Characteristics of Organizational Objectives:
4. Time dimension:
 Objectives are time bound.
 e.g. short term, long term, intermediate term.
R.ArunKumar,AP/Mech,RIT

8. Characteristics of Organizational Objectives:
5. Quantifiable and non – quantifiable:
 Objectives based on numbers are called quantifiable.
 Objectives based on quality are called as non – quantifiable.
 e.g. Improving productivity, increasing profit to certain number.
Improving job satisfaction, enhancing quality of products.
R.ArunKumar,AP/Mech,RIT

9. Characteristics of Organizational Objectives:
6. Social sanction:
 Objectives will confirm to general needs of the society.
R.ArunKumar,AP/Mech,RIT

10. Importance and role of objectives:
 Legitimacy
 Sense of direction
 Motivational aid
 Control mechanism
 Co – ordination
 Unifying force
R.ArunKumar,AP/Mech,RIT

11. Importance and role of objectives:
1. Legitimacy
 They describe the purpose of an organization.
 They provide the identity to an organization.
R.ArunKumar,AP/Mech,RIT

12. Importance and role of objectives:
2. Sense of direction:
 Provides the guide way towards the target.
 Every employee must have clear idea about what he/she is
supposed to do in his/her job.
R.ArunKumar,AP/Mech,RIT

13. Importance and role of objectives:
3. Motivational aid:
 Apart from incentives and rewards, objective of an organization
will be the driving force to attain a goal.
R.ArunKumar,AP/Mech,RIT

14. Importance and role of objectives:
4. Control mechanism:
 Being a driving force, objectives restricts employees from
deviation.
R.ArunKumar,AP/Mech,RIT

15. Importance and role of objectives:
5. Co – ordination:
 Objectives serve as unifying force for an organization.
 e.g. executives coordinates the efforts of their subordinates.
R.ArunKumar,AP/Mech,RIT

16. Importance and role of objectives:
6. Uniqueness:
 They are core force to planning.
 They serve as reference points for the formulation of policies,
strategies, procedures, etc.
R.ArunKumar,AP/Mech,RIT

17. SETTING OBJECTIVES:
R.ArunKumar,AP/Mech,RIT

18. SETTING OBJECTIVES:
 Setting objective must meet following criteria:
1. Should be consistent with the values of management.
2. Should pin point strength of an organization.
3. Should satisfy external environment factors.
R.ArunKumar,AP/Mech,RIT

19. Objective setting guidelines:
 Objectives should be clear and specific.
 Should be expressed in measurable terms.
 Objectives should be attainable and realistic.
 Objectives should be time bound.
 Should be whole heartedly accepted by employees.
 Objectives should be challenging.
 Objectives should have sub-goals and linked to rewards.
 Objectives should be inter – connected and mutually
supportive.
 Objectives should be flexible and adaptable.
 It should be set down in all key – result areas.
R.ArunKumar,AP/Mech,RIT

20. Benefits of objectives formulation:
 Sets specific target.
 Provides direction for employee.
 Increases staff motivation.
 Helps to focus on specific task.
 Builds relationship.
 Helps to measure the performance of employee.
 Helps to prioritize.
 Enables the success to be measured.
R.ArunKumar,AP/Mech,RIT

21. Limitations in objectives formulation:
 Immeasurability
 Inadequate resource allocation
 Stress on employee
 Neglecting ground reality
 Avoiding consultation
 Unclear and rigid objective
 Time constraint
R.ArunKumar,AP/Mech,RIT

22. SMART Objectives:
R.ArunKumar,AP/Mech,RIT