2. Objectives
“Objectives are the goals, aims, or purposes
that organisations wish to achieve over
varying periods of time”
- McFarland
3. 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
4. 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 levels
becomes the means to achieve the goals at
the next levels and so on up through the
different levels of the organisation
5. Hierarchy
Socio
of Economic
objectives Purpose
Mission
Top Down Bottom Up
Overall Org. objectives
More specific Overall obj.
Divisional Objective
Departmental and Unit objective
Individual Objectives
6. 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
7. 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.
8. Steps in MBO
Setting Organisational purpose and
objectives
Identifying Key Result Areas (KRAs)
Setting subordinate’s objectives
Matching Resources with objectives
Appraisal
Recycling
9. Org. Purpose STEPS IN MBO Planning
And Objectives Premises
Key Result Areas
Superior’s Objectives
Superior’s Recommendation Subordinate’s Statement
For 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
10. Benefits of MBO
Better Managing
Clarity in Organisational action
Personal satisfaction
Basis for Organisational change
11. Limitations of MBO
Time and Cost
Failure to teach MBO philosophy
Problem in objective setting
Emphasis on short term objectives
Inflexibility
Frusturation
12. 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
13. 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.