The document discusses objectives and setting objectives for organizations. It defines objectives as the ends an organization seeks to achieve through its operations. Objectives should be specific and measurable commitments to achieve results within a time frame. When setting objectives, they should be clear, measurable, attainable, time-bound, and accepted by employees. Objectives provide organizations with legitimacy, direction, motivation, coordination and uniqueness. The document outlines characteristics, importance, guidelines and benefits of setting objectives, as well as potential limitations.

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