(a) In MBO, there are multiple objectives covering a range of organisational activities(b) In traditional objective setting the objectives, once formulated, provide direction for management decisions(c) In traditional objective setting the objectives, once established, form the criteria against which actual accomplishments can be measured(d) In MBO, organisation members may actually pursue objectives other than the formal organisational objectives(e) Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and ‘bottom up’ process.

1. PRINCIPLE OF MANAGEMENT
GOALS, TYPES OF GOALS
AND
SETTING GOALS AND DEVELOPING PLANS
PRESENTED BY:
Sumaira Fatima & Faleela Abid

2. GOALS:
• In organizations, goal management consists of the process of recognizing or inferring goals of
individual team-members, abandoning goals that are no longer relevant, identifying and
resolving conflicts among goals, and prioritizing goals consistently for optimal team-
collaboration and effective operations.

3. Examples :
• An example of goal types in business
management:
• Consumer goals: this refers to supplying a product
or service that the market/consumer wants
• Product goals: this refers to supplying an
outstanding value proposition compared to other
products perhaps due to the likes of quality,
design, reliability and novelty
• Operational goals: this refers to running the
organization in such a way as to make the best use
of management skills, technology and resources
• Secondary goals: this refers to goals which an
organization does not regard as priorities.

4. TYPES OF GOALS
Financial Goals: The monetary objectives of an individual
or organization that are often determined by their future
requirements for funds. Example: you might want to save
$100 to buy an MP3 player in three months.
Strategic Goals: The planned objectives that an
organization strives to achieve. Example: We started our
year with a list of strategic goals which we'll use to guide
our day-to-day decisions in an effort to meet internal and
external customer expectations and business objectives

5.  Stated Goals: Official statements of what an organization says-and what it
wants its stakeholders to believe-its goals are mean stated goals. Example:
Nike’s goal is “delivering inspiration and innovation to every athlete.
 Real Goals: If you want to know an organization’s real goals- the goals an
organization actually pursues-you should observe what organizational members
are doing. As an example, a personal goal might be: Lose 20 Pounds by this time
next year.
 Stated Goals versus Real Goals : Broadly-worded official statements of the
organization (intended for public consumption) that may be irrelevant to its real
goals (what actually goes on in the organization).

6. Setting Goals and Developing Plans
 Traditional Goal: Setting is an approach to setting goals in which goals are set
at the top level of the organization and then broken into sub goals for each level
of the organization.
 Traditional goal setting assumes that top managers know what is best because of
their ability to see the “big picture.”
 Employees are to work to meet the goals for their particular area of
responsibility.

7. The Downside of Traditional Goal Setting
When the hierarchy of organizational goals is clearly defined, it forms an
integrated means-end chain —an integrated network of goals in which
the accomplishment of goals at one level serves as the means for
achieving the goals, or ends, at the next level.

8. Management by Objectives (MBO)
 Is a personnel management technique where managers and
employees work together to set, record and monitor goals for a
specific period of time.
 Organizational goals and planning flow top-down through the
organization and are translated into personal goals for
organizational members.
 The technique was first championed by management expert
Peter Drucker and became commonly used in the 1960s
 Company Performance MBO Examples
 TOP Company MBO
 Achieve cash flow of $500 thousand per month
 Decrease OPEX by 5%
 Increase Gross Margin by 10%
 Achieve payback period of 1.5 year for new products

9. Thank You