This document discusses the nature and purpose of planning in management. It provides definitions and key characteristics of planning, including that planning is goal-oriented, occurs at all management levels, focuses on efficiency and accuracy, and coordinates activities. The document also outlines several purposes of planning such as facilitating goal accomplishment, ensuring economy, preceding control functions, and providing for future contingencies. Limitations and advantages of planning are presented as well.

1. Nature of Planning:
• 1. Planning is goal-oriented: Every plan must contribute in
some positive way towards the accomplishment of group
objectives. Planning has no meaning without being related to
goals.
• 2. Primacy of Planning: Planning is the first of the managerial
functions. It precedes all other management functions.
• 3. Pervasiveness of Planning: Planning is found at all levels of
management. Top management looks after strategic planning.
Middle management is in charge of administrative planning.
Lower management has to concentrate on operational
planning.
• 4. Efficiency, Economy and Accuracy: Efficiency of plan is
measured by its contribution to the objectives as
economically as possible. Planning also focuses on accurate
forecasts.

2. • 5. Co-ordination: Planning co-ordinates the what,
who, how, where and why of planning. Without
co-ordination of all activities, we cannot have
united efforts.
• 6. Limiting Factors: A planner must recognise the
limiting factors (money, manpower etc) and
formulate plans in the light of these critical
factors.
• 7. Flexibility: The process of planning should be
adaptable to changing environmental conditions.
• 8. Planning is an intellectual process: The quality
of planning will vary according to the quality of
the mind of the manager.

3. purpose of planning.
1. Facilitates Accomplishment of Objectives: The aim of planning is
to facilitate the attainment of objectives. It focuses its attention on
the objectives of the organization. It states the objectives of each
department in the organization and of the enterprise as a whole.
This helps personnel to see the enterprise in its entirety and see how
their actions contribute to its ultimate goals. Planning forces the
managers to consider the future and revise its plans if necessary for
achieving the objectives.
2. Ensures Economy in Operations: Since planning emphasizes
efficient operation and consistency, it minimizes costs and gains
economical operation. Coordinated group effort, even flow of work
and deliberate decisions are due to planning.
3. Precedes Control: Control involves those activities which are
carried out to force events to conform to plans. Plans serves as
standards of performance. Control seeks to compare actual
performance with set standards. So control cannot be exercised
without plans.

4. Provides for Future Contingency: Planning is required
because future is uncertain. Planning enables the
management to look into the future and discover
suitable alternative course of action. Planning helps the
management to have a clear-cut idea about the future
and to frame a suitable programme for action. Even
when the future is highly certain, planning is essential
to decide the best course of action.
5. Facilitates Optimum Utilization of Resources:
Various resources that are relevant to an organization
namely, funds, physical resources, manpower,
technological know-how, etc., are by and large
inadequate due to demand from competing
organizations and have alternative uses. This
necessitate the organization to make the best possible
use of resources. Planning facilitates optimum use of
available resources.

5. • 6. Pr-requisites for other Managerial Functions: The purposes
of planning is to provide a conceptual and concrete basis for
initiating and undertaking other managerial functions like
staffing, organizing, directing and control. Planning is a primary
function and it goes a long way to improve efficiency of other
functions of management and makes the management tasks
more effective.
• 7. All Pervasive Function: Planning is a function of managers at
all levels though the scope, nature and extent of planning differs
from one enterprise to another and from one level to another.
Irrespective of the level and area of his operation, each and
every manager has to perform this function. Planning at the top
level will be fundamental, broad and far-reaching. Managers at
other levels may plan about their departmental activities for a
short period.
• In this connection, Theo Haimann says that
• “the scope, extent and importance of the nature of planning
tend to decrease as we descend toward the lower levels of
management and approach the point of execution of the plan”.

6. • 8. Coordinates the Activities: Coordination is an
important factor for the smooth functioning of an
organization. As pointed out by H.G. Hicks,
• “planning coordinates the activities of the
organization toward defined and agreed upon
objectives. The alternative is random behavior”.
• If planning is absent, various divisions of the
organization may pursue different objectives.
• 9. Provides for the Delegation of Authority:
Planning provides for the delegation of
authority to subordinates. Well-formulated plans
serve as guides to subordinates and reduce risk
involved in delegation of authority.

7. • Planning facilitates management by objectives.
– Planning begins with determination of objectives.
– It highlights the purposes for which various activities are to be undertaken.
– In fact, it makes objectives more clear and specific.
– Planning helps in focusing the attention of employees on the objectives or goals of enterprise.
– Without planning an organization has no guide.
– Planning compels manager to prepare a Blue-print of the courses of action to be followed for
accomplishment of objectives.
– Therefore, planning brings order and rationality into the organization.
• Planning minimizes uncertainties.
– Business is full of uncertainties.
– There are risks of various types due to uncertainties.
– Planning helps in reducing uncertainties of future as it involves anticipation of future events.
– Although future cannot be predicted with cent percent accuracy but planning helps
management to anticipate future and prepare for risks by necessary provisions to meet
unexpected turn of events.
– Therefore with the help of planning, uncertainties can be forecasted which helps in preparing
standbys as a result, uncertainties are minimized to a great extent.
Advantages of planning

8. • Planning facilitates co-ordination.
– Planning revolves around organizational goals.
– All activities are directed towards common goals.
– There is an integrated effort throughout the enterprise in various
departments and groups.
– It avoids duplication of efforts. In other words, it leads to better co-
ordination.
– It helps in finding out problems of work performance and aims at rectifying
the same.
• Planning improves employee’s moral.
– Planning creates an atmosphere of order and discipline in organization.
– Employees know in advance what is expected of them and therefore
conformity can be achieved easily.
– This encourages employees to show their best and also earn reward for the
same.
– Planning creates a healthy attitude towards work environment which helps
in boosting employees moral and efficiency.

9. • Planning helps in achieving economies.
– Effective planning secures economy since it leads to orderly allocation
ofresources to various operations.
– It also facilitates optimum utilization of resources which brings
economy in operations.
– It also avoids wastage of resources by selecting most appropriate use
that will contribute to the objective of enterprise. For example, raw
materials can be purchased in bulk and transportation cost can be
minimized. At the same time it ensures regular supply for the
production department, that is, overall efficiency.
• Planning facilitates controlling.
– Planning facilitates existence of certain planned goals and standard of
performance.
– It provides basis of controlling.
– We cannot think of an effective system of controlling without
existence of well thought out plans.
– Planning provides pre-determined goals against which actual
performance is compared.
– In fact, planning and controlling are the two sides of a same coin. If
planning is root, controlling is the fruit.

10. • Planning provides competitive edge.
– Planning provides competitive edge to the enterprise over the
others which do not have effective planning. This is because of
the fact that planning may involve changing in work methods,
quality, quantity designs, extension of work, redefining of goals,
etc.
– With the help of forecasting not only the enterprise secures its
future but at the same time it is able to estimate the future
motives of it’s competitor which helps in facing future
challenges.
– Therefore, planning leads to best utilization of possible
resources, improves quality of production and thus the
competitive strength of the enterprise is improved.
• Planning encourages innovations.
– In the process of planning, managers have the opportunities of
suggesting ways and means of improving performance.
– Planning is basically a decision making function which involves
creative thinking and imagination that ultimately leads to
innovation of methods and operations for growth and
prosperity of the enterprise.

11. Limitations of Planning
• (1) Planning Creates Rigidity:
• Although the quality of flexibility is inherent in planning,
meaning thereby that in case of need changes can be brought
in, but it must be admitted that only small changes are
possible. Big changes are neither possible nor in the interest
of the organisation.
• (2) Planning Does Not Work in a Dynamic Environment:
• Planning is based on the anticipation of future happenings.
Since future is uncertain and dynamic, therefore, the future
anticipations are not always true. Therefore, to consider
planning as the basis of success is like a leap in the dark.
• Generally, a longer period of planning makes it less effective.
Therefore, it can be said that planning does not work in
dynamic environment.

12. • (3) Planning Reduces Creativity:
• Under planning all the activities connected with the attainment
of objectives of the organisation are pre-determined.
Consequently, everybody works as they have been directed to
do and as it has been made clear in the plans.
• Therefore, it checks their incisiveness. It means that they do not
think about appropriate ways of discovering new alternatives.
According to Terry, “Planning strangulates the initiative of the
employees and compels them to work in an inflexible manner.”
• (4) Planning Involves Huge Costs:
• Planning is a small work but its process is really big. Planning
becomes meaningful only after traversing a long path. It takes a
lot of time to cover this path.
• During this entire period the managers remain busy in collecting
a lot of information and analysing it. In this way, when so many
people remain busy in the same activity, the organisation is
bound to face huge costs.

13. • (5) Planning is a Time-consuming Process:
• Planning is a blessing in facing a definite situation but
because of its long process it cannot face sudden
emergencies. Sudden emergencies can be in the form of
some unforeseen problem or some opportunity of profits
and there has been no planning for all these situations
beforehand and which now requires immediate decision.
• (6) Planning Does Not Guarantee Success:
• Sometimes the managers think that planning solves all
their problems. Such thinking makes them neglect their
real work and the adverse effect of such an attitude has to
be faced by the organisation.
• In this way, planning offers the managers a false sense of
security and makes them careless. Hence, we can say that
mere planning does not ensure success; rather efforts
have to be made for it.

14. Management by Objectives (MBO)
• Management by Objectives (MBO) is a process of agreeing
upon objectives within an organization so that
management and employees agree to the objectives and
understand what they are in the organization.
• The term "management by objectives" was first popularized
by Peter Drucker in his 1954 book 'The Practice of
Management' The essence of MBO is participative goal
setting, choosing course of actions and decision making.
• An important part of the MBO is the measurement and the
comparison of the employee‘s actual performance with the
standards set. Ideally, when employees themselves have
been involved with the goal setting and the choosing the
course of action to be followed by them, they are more
likely to fulfill their responsibilities.

15. Features of MBO
• The principle behind Management by Objectives (MBO) is basically for
employees to have clarity of the roles and responsibilities expected of
them. They then understand the objectives they must do and the over all
achievement of the organization. They also help with the personal goals of
each employee.
• Some of the important features and advantages of MBO are:
1. Motivation – Involving employees in the whole process of goal setting and
increasing employee empowerment increases employee job satisfaction and
commitment.
2. Better communication and Coordination – Frequent reviews and
interactions between superiors and subordinates helps to maintain
harmonious relationships within the enterprise and also solve many problems
faced during the period.
3. Clarity of goals -Subordinates have a higher commitment to objectives that
they set themselves than those imposed on them by their managers.
Managers can ensure that objectives of the subordinates are linked to the
organisation‘s objectives.

16. Advantages of MBO:
1. Improved Performance:
MBO is basically a result oriented process. Its main focus is on setting and controlling goals.
Managers are encouraged to do detailed planning. They concentrate on the important task of
improving performance by reducing the costs and harnessing the opportunities. Improved
planning will lead to improved productivity arid more profits.
2. Greater Sense of Identification:
The individual members of the organization have a greater sense of identification with the
company goals. With MBO, the subordinates feel proud of being involved in the
organizational goals. This improves their morale and commitment to the organizational
objectives.
3. Maximum Utilization of Human Resources:
Since the goals are set in consultation with the subordinates, these are more difficult to
achieve and more challenging than if the superiors had imposed them. In addition, since
these goals are fixed according to the particular abilities of the subordinates, it obtains
maximum contribution from them and thus it leads to maximum utilization of human
resources.
4. No Role Ambiguity:
There is no role ambiguity or confusion in the organization, because specific and clear goals
are set for the organization, for the division for the departments and for the individual
members. Both the managers and the subordinates know what they have to do and what is
expected of them.

17. 5. Improved Communication:
In MBO, there is improved communication between the
management and the subordinates. This continuous two way
communication helps in clarifying any ambiguities, refining and
modifying any processes or any aspects of objectives.
6. Improved Organizational Structure:
In MBO, the whole of organizational structure is redesigned because
of the revision of job descriptions of various positions as a result of
resetting of the individual goals. All this helps in improving the
organizational structure as a result of location of the problem and
weak areas of the organization.
7. Device for Organizational Control:
MBO serves as a device for organizational control and integration. If
there are any deviations discovered between the actual
performance and the goals, these can be regularly and
systematically identified, evaluated and corrected.

18. 8. Career Development of the Employees:
MBO provides a realistic means of analyzing training needs and
opportunities for growth for the employees. The management takes keen
interest in the development of skills and abilities of subordinates and
provides an opportunity for strengthening those areas which need further
refinement, thus, leading to career development of employees.
9. Result Based Performance Evaluation:
The system of periodic performance evaluation lets the subordinates know
how well they are doing. In MBO, strong emphasis is put on measurable and
quantifiable objectives. As a result, the appraisal tends to be more objective
specific and equitable. As these appraisal methods are based on result and
not on some intangible characteristics, there are considered to be superior
to the trait evaluation methods of appraisal.
10. Stimulating the Motivation of the Employees:
The system of MBO stimulates the employees motivation. First of all, they
feel motivated because of their participation in goal setting. They take keen
interest in the implementation of the goals which they themselves have set.
Secondly the appraisal system, being very objective and specific can be
highly morale boosting.

19. Limitations
1. Lack of Support of Top Management:
In traditional organizations, the authority is vested in the top management
and it flow from top to bottom. In MBO, subordinates are given an equal
opportunity of participation, which is resented by the top management.
This system cannot succeed without the full support of top management.
2. Resentful Attitude of Subordinates:
The subordinates can also be resentful towards the system of MBO.
Sometimes, while setting the goals, they may be under pressure to get
along with the management and the objectives which are set may be
unrealistically high or far too rigid. The subordinates, generally, feel
suspicious of the management and believe that MBO is another play of the
management to make them work harder and become more dedicated and
involved.
3. Difficulties in Quantifying the Goals and Objectives:
The MBO will be successful only if the goals can be set in quantifiable
terms. But if the areas are difficult to quantify and difficult to evaluate, it
will not be possible to judge the performance of the employees. Moreover
MBO does not have any subjectivity in performance appraisal. It rewards
only productivity without giving any consideration to the creativity of the
employees.

20. 4. Costly and Time Consuming Process:
MBO is quite costly and a time consuming process. There is a lot of paper work
involved. Moreover, there are a lot of meetings and too many reports to be
prepared, which add to the responsibilities and burden of the managers.
Because of these reasons managers generally resist the MBO.
5. Emphasis on Short Term Goals:
Under MBO, goals are set only for a short period, say for six months or one year.
This is because of the reason that goals being quantitative in nature, it is difficult
to do long range planning. Since the performance of the subordinate is to be
reviewed after every six months or one year, they tend to concentrate on their
immediate objectives without caring for the long range objectives of the
enterprise. This emphasis on short term goals goes against the organizational
efficiency and effectiveness and is not a healthy sign.
6. Lack of Adequate Skills and Training:
Most of managers lack adequate skills, knowledge and training required in
interpersonal interaction which is required in the MBO. Many managers tend to
sit down with the subordinate, dictate the goals and targets with no input
permitted from the subordinates and then demand that the goals be achieved in
a specified time. Whether the goals are realistic or not does not enter the
picture. In this type of environment, two way communication is not there and
objectives are imposed on the subordinates. This destroys their morale,
initiative and performance.

21. 7. Poor Integration:
Generally, the integration of the MBO with the other systems such as
forecasting and budgeting is very poor. This lack of integration makes the
overall functioning of the system very poor.
8. Lack of Follow Up:
Under the system of MBO, the superior must get in touch with the
subordinate at the appropriate time and at that time, the subordinate will
inform the boss exactly what has been accomplished and how. If the superior
delays the meeting, it will create hurdles in the successful implementation of
MBO as the subordinate will also start taking the programme casually.
9. Difficulty in Achievement of Group Goals:
When goals of one department depend upon the goals of another
department, cohesion is difficult to maintain. In such cases, the achievement
of goals will also become very difficult.
10. Inflexibility:
MBO may make the organization rigid. As the goals are set after every six
months or one year, the manager may not like to revise the goals in between,
even if the need arises, due to fear of resistance from the subordinates. The
managers must learn to handle this situation, because sometimes revision of
short term goals is necessary for the achievement of long range objectives.

22. 11. Limited Application:
MBO is useful largely for the managerial and
professional employees. It is not appropriate for all
levels and for everyone because of the heavy demands
made by it. It can be made applicable only when both
the subordinates and manages feel comfortable with it
and are willing to participate in it.
12. Long Gestation Period:
It takes a lot of time, sometimes 3-5 years to
implement the MBO programme properly and fully and
some research studies have shown that these
programmes can lose their impact and potency as a
motivating force over a long period of time.

23. THE PROCESS OF MANAGEMENT BY
OBJECTIVES
• Setting Preliminary Objectives at the top:-- The goals set by
the superior are preliminary, based on an analysis and
judgement as to what can and should be accomplished by the
organization within a certain period. This requires taking into
account the company‘s strengths and weakness in light value of
available opportunities and threats. These goals must be
regarded as tentative an subject to modification while the
entire chain of verifiable objectives is worked out by
subordinates.
• Clarifying Organizational Roles: - The relation ship between
expecte results and the responsibility for attaining them often
needs to be clarified. Analysis of an organization‘s structure
often reveals that the responsibility is vague and that
reorganization is needed. Ideally, each and sub-goal should be
one particular person‘s clear responsibility.

24. • Setting Subordinate‟s Objectives:-- After making sure that subordinate
managers have been informed or pertinent general objectives, strategies
and planning premises, the superior can then proceed to work with
subordinates in setting their objectives. Superior must be patient
counselors, helping their subordinates develop consistent and supportive
objectives and being careful not to set goals that are impossible to
achieve. The superior‘s judgment and final approval must be based on
what is reasonably attainable, what is fully supportive of upper-level
objectives, what is consistent with the goals of other managers in other
functions, and what is consistent with the longerrun objectives of the
department of the company. One of the major advantages of carefully
setting up a network of verifiable goals is tying in the need of capital,
materials and human resources at the same time. By relating these
resources to the goals themselves, superiors can better see the most
effective and economical way of allocating them.
• Recycling Objectives: - -Setting objectives is not only a joint process but
also an interactive one. Objectives can hardly be set by starting at the top
and dividing them up among subordinates. Nor should they be started
from the bottom. A degree of recycling is required. Top management
may have some idea of what their subordinate‘s objectives should be-but
they will almost certainly change these preconceived goals as the
contributions of the subordinates come into focus.

25. OBJECTIVE
• Concept
• Objectives are the ends for the achievement of which
managerial activities are directed. Effective
management is possible only through the setting up of
objectives and all managerial efforts should be directed
to achieve these objectives. Objectives constitute the
purpose, the attainment of which is necessary for the
business. An organization can grow in an orderly way if
well defined goals have been set. Objectives are a pre-
requisite for planning. No planning is possible without
setting up of objectives.

26. NATURE OF OBJECTIVE
• 1. Multiplicity of Objectives
Business objectives are multiple in character. That is, a business
does not have only one objective. It has many or multiple
objectives. This is because a business has to satisfy different
groups, i.e. shareholders, employees, customers, creditors,
vendors, society, etc. The business has to fix different objectives
for each group.
2. Hierarchy of Objectives
Hierarchy means to write down the objectives according to their
importance. The most important objective is written first, and
the least important objective is written last. All objectives are
important. However, some objectives are more important than
others. Some objectives need immediate action while others
can be kept aside for some time.

27. 3. Periodicity of Objectives
Based on period, business objectives can be
classified into two types, viz.,
• Short-term objectives, and
• Long-term objectives.
• The short-term objectives are made for a short-
period, i.e. maximum one year. Short-term
objectives are more specific.
• The long-term objectives are made for a long-
period, i.e. for five years or more. Long-term
objectives are more general. They are like a Master
Plan.

28. 4. Flexibility of Objectives
The business is flexible. Therefore, the business objectives must also be flexible. If
the objectives are rigid, the business will not survive. This is because the business
environment keeps on changing. There are continuous changes in the technical,
social, economic and political environment. The business has to change its objectives
according to the changes in the business environment. The hierarchy of objectives
must also be changed from time to time.
5. Measurability of Objectives
The objectives must be clear and specific. It must be easy to measure. For e.g. Each
salesman must sell 100 units of water purifier per month. This is a clear and specific
objective. It is easy to measure the performance of the salesman. If a salesman sells
200 units of water purifier in a month then his performance is good. He can be given
bonus and promotion. However, if a salesman sells only 10 units of water purifier in a
month then his performance is bad. He needs more training. Measurable objectives
motivate the employees to work hard. This is because they know their target clearly.
Their performance can also be measured easily.
6. Network of Objectives
Network means an interconnection between different objectives. A business has
many different objectives, viz., corporate objectives, departmental objectives,
sectional objectives and individual objectives. It also has objectives for shareholders,
customers, employees, etc. All these objectives must be interconnected. They must
support each other. They must not clash with each other. They must move in the
same direction. If not, the business will not survive. Similarly, the objectives of all the
departments, must support each other. They must not clash or conflict will each
other.

29. TYPES OF OBJECTIVE
• Primary Objectives:
• These are the objectives for which a company has been started. Every
business aims to earn more and more profits out of its working. Primary
objectives are related to the company and not to individuals. Earning of
profits out of providing goods and services to the customers is the primary
objective of a company. The goods and services are provided as per the
requirements of customers. Earning profits through customer satisfaction
helps in earning goodwill and regular clientele. The production of goods
and services as per determined targets will be achieved through individual
goals of employees in the organization.
• 2. Secondary Objectives:
• These objectives help in achieving primary objectives. The targets are
identified and efforts are made to increase efficiency and economy in the
performance of work. The goals dealing with analysis, advice and
interpretation provide support to goals directed by primary objectives.
Secondary objectives, like primary objectives, are impersonal in nature.
The primary goal of earning profits through providing goods and services
will be achieved if there is a plan to add new products in the market at
regular intervals. The goal of adding new products will be a secondary goal
which will help in achieving the primary objective.

30. • 3. Individual Objectives:
• These are the goals which individual members in an organization
try to achieve on daily, weekly, monthly or yearly basis. These
objectives are achievable as subordinate to primary and
secondary goals. Most of the individual objects are economic,
psychological or non-financial rewards which an individual tries
to achieve by using resources of time, skill and effort. An
individual tries to satisfy his needs and desires by working in an
organization. In order to motivate individuals for raising their
performance, organizations offer varied incentives.
• 4. Social Objectives:
• These are the goals of an organization towards society. These
include the obligations required by the community, government
agencies etc. These also include goals intended to further social,
physical and cultural improvement of the society. Social
obligations of business has become essential these days.
Business has to produce goods and services by taking into
consideration health requirements of people. There are
expectations that business should also spent a part of its profits
for the welfare of community.

31. • Qualitative and Quantitative Objectives
•
There are two types of objectives, viz., Quantitative
and Qualitative objectives.
• Quantitative objectives are easy to measure. It is
expressed in numbers. For e.g. in Dollars, Rupees,
Percentage, etc. Quantitative objectives are visible,
tangible and countable.
• Qualitative objectives are not easy to measure. It is
not expressed in numbers. For e.g. Employee
performance, employee satisfaction, etc. These
objectives cannot be measured. Qualitative objectives
are invisible, intangible and uncountable.
• Today modern methods are used to measure
qualitative objectives. A business must have both
quantitative and qualitative objectives.

33. IMPORTANCE OF OBJECTIVE
• Create direction and guidance: Every business needs guidelines.
Objectives direct the company's activities toward achieving the
goals and visions of the owners.
• Motivate employees: Employees become more enthusiastic and
spirited in their work when they know what is expected of them.
Their work is more directed with less wasted time. They get
particularly interested when they learn about the rewards for
meeting and exceeding their objectives. If employees don't have
the skills for their jobs, they are inspired to learn more and find
ways to improve their performance.
• Establish standards to evaluate performance: Objectives
establish standards of performance. They are measuring sticks to
identify the successes and failures of an organization and its
employees. Performance reporting helps managers identify non-
performing areas and to take corrective actions.

34. • Form the basis to set budgets: Once the path for the
company's development has been defined, objectives help
allocate the funds needed to achieve the goals. Budgets set
specific dollar amounts for departments that employees can
use for guidance. Financial reports give the owner the
information to make sure that everything stays on the road.
• Develop structure of project plans: Objectives form the
structure for project development and measurement of
performance along the way. Applying objectives to a project
defines the timeline of activities needed to complete the plan.
• A business that does not have defined objectives is wandering,
lost in the woods. The likelihood of success is remote, since
people in the business are not certain as to where they should
be going.
• A business owner has a vision of his company, and the
objectives are the reasons to communicate his ideas to
employees.

35. • Objectives Provide Clarity To The Business
• Objectives provide clarity to the business that what
the business has to do? When to do and how to do.
That helps the business to grow with clarity.
• Objectives Reduce The Risk Of Failure
• When the business has the objectives, it reduces the
risk of the failure because when the manager decides
objectives he made proper planning of the tasks. So,
objectives reduce the risk of failure.
• Objectives Increase The Goodwill Of The Business
• When the company works in order to achieve the
objectives of the business, then the goodwill of the
business automatically will increase because that time
the company works towards customers satisfaction.
That mean objective increases the goodwill of the
business.

36. • Objectives Improve Performance Of Employees
• When the employees have objectives they work hard
towards achieving the goal of business. it means that
objectives help the management to improve the
performance of employees.
• Objectives Give Result To The Management
• Objectives of the management give the result to the
management because that time management has set the
deadline for completing tasks to the employees. then
employees work hard to achieve objectives of the
management.
• Objectives Provide Flexibility
• Objectives provide flexibility to the management. when the
management set objectives of management then they
know that who is the right person for the right work. So,
objectives provide flexibility to the management.