OBJECTIVES

OBJECTIVES

Objectives are the goals that an organization or an individual aims to achieve. Objectives provide direction to an organisation. These are the standards of performance, which are expected to be achieved. It means, where we are and where we want to go.

Objectives are pre-requisite for planning. No planning is possible without setting up of objective. Objectives are not only helpful in planning but also in other managerial function like- organizing, directing and controlling. Clear-cut objectives help in proper decision-making and in achieving better results.

Characteristics of Objectives

Multiple in Nature
Have hierarchy
Form a Network
May be Long-term or Short-term
Verifiable (Specific)
1. Objectives are multiple in Nature: It is multiple as there are many objectives based on the level of management. Different areas of business have different and their own objectives. Management tries to achieve all the objectives efficiently and effectively.

2. Objectives have Hierarchy: Objectives, laid down in each position, have hierarchy (sequencing) from the Top to the Lowest level in the organisation.

3. Objectives form a Network: Objectives are inter-related and inter-dependant and mutually supportive to achieve the main objective of the organisation. It makes the network of top-middle-lower level’s objectives to achieve the common goal.

4. Objectives may be Long-term or Short-term: Objectives contains both, long as well as short-term goals/plans. Short-term plans are the way or path to achieve long-term objectives. It is important to co-relate both in the master plan.

5. Objectives are Verifiable and Specific: Objectives are verifiable and specific, as they are expressed in numerical terms. Verifiability is the key to success. Verifiable objectives provides the standard against which, the actual performance can be measured.

The setting of Objective are should be based on the principle of SMARTER. It is explained as:

S- Specific
M- Measured
A- Attainable
R- Reasonable
T- Time framed
E- Effective
R- Rewardable
Guidelines for setting the Objectives

Before initiating the process of setting objectives, the planner should study the conditions prevailing inside and outside the organization. The strength and weakness of the organization should be kept in mind. An attempt to improve the efficient spot should be made. The following factors may be considered while framing the objectives: -


















1. Classification of Objectives: The first step is to classify the objectives. These are classified into basic, outstanding, major, derivative etc. Major objectives are broad in scope and wide in character. Then objectives are to broken down in to different sections, departments or individuals. Major objectives translated step-by-step down towards the lowest level. The ultimate aim should be, to achieve the organizational objective and all other objectives should be merged or mingled with the main objective.

2. Attainable and Consistent: The selected objectives must be attainable, which represent hopes or wishes, but should be responsible. Mostly, enterprises have multiple goals at a time. So, each must be established in the light of other to create consistency of the achievements in the organization.

3. Determining the Area of Objectives: The next step is to specify the area of objective. According to Peter Drucker, there are eight areas. These are:





















4. Realistic & Practical: The objectives should be realistic and practical, so that they can be can be attainable by the available resources. Too high goals, which are beyond achievable measure, leads to the discouragement of the employees. On the other hand, too low objectives will also cause the employees as they feel bore to give their maximum.

5. Balance between Long-term & Short-term Objectives: Short-term objectives should be recognized as distinctive step in the realization of long-term objectives. The balance between both is very important to avoid any conflict within the organisation.

6. Possibility of Adjustment (Flexibility): The objectives should be flexible enough to cater the possibility of adjustment according to situation in the future. It should be modified as and when situation demands.

Advantages of Laid Down Objectives