Objectives“Objectives are the goals, aims, or purposes that organisations wish to achieve over varying periods of time” - McFarland
Concepts & Features of Objectives Organisations or groups are created basically for certain objectives Obectives may be broad or specific Objectives have hierarchy Organisational objectives are conformed to the general needs of the soceity An organisation have multiple objectives Objectives can be changed
Hierarchy Of Objectives Means-End Chain Higher level goals (ENDS) are linked to lower level goals, which serve as the MEANS for their accomplishments or Achievement of goals at lower levelsbecomes the means to achieve the goals at the next levels and so on up through the different levels of the organisation
Hierarchy Socio of Economicobjectives Purpose Mission Top Down Bottom Up Overall Org. objectives More specific Overall obj. Divisional Objective Departmental and Unit objective Individual Objectives
Steps in Goal Setting Review the organisation’s mission Evaluate available resources Determine the goals individually or with input from others Write down the goals and communicate them to all who need to know Rreview results and whether goals are being met
Management By Objectives (MBO)A management system in which specific performance goals are jointly determined by employees and their managers, progress towards accomplishing these goals are periodically reviewed and rewards are allocated on the basis of this progress.
Steps in MBO Setting Organisational purpose and objectives Identifying Key Result Areas (KRAs) Setting subordinate’s objectives Matching Resources with objectives Appraisal Recycling
Org. Purpose STEPS IN MBO Planning And Objectives Premises Key Result Areas Superior’s ObjectivesSuperior’s Recommendation Subordinate’s StatementFor subordinate Objectives For his objectives Subordinate’s agreed R Matching objectives E Resources C Subordinate’s Performance Y C L Performance Review and appraisal E
Benefits of MBO Better Managing Clarity in Organisational action Personal satisfaction Basis for Organisational change
Limitations of MBO Time and Cost Failure to teach MBO philosophy Problem in objective setting Emphasis on short term objectives Inflexibility Frusturation
Pre requisites for MBO Purpose of MBO Top Management support Training for MBO Participation Feed back for self direction and self control Implementing MBO at lower levels Conflicting Objectives
Criticisms of PLANNING Planning may creat rigidity Plan’s can’t be developed for dynamic environment Formal plans can’t replace intution and creativity Planning focus manager’s attending on today’s competetion, not on tomorrow’s Formal planning reinforces success, which may lead to failure.