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³Objectives are the goals, aims, or purposes


that organizations wish to achieve over
varying periods of time´
- McFarland
„oncepts & Features of Objectives
 Organizations or groups are created basically for
certain objectives
 Objectives may be broad or specific
 Objectives have hierarchy
 Organizational objectives are conformed
to the general needs of the society
 An organization have multiple objectives
 Objectives can be changed
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'igher 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 organization
'ierarchy
of Socio
Economic
objectives Purpose

Mission
Top Down Bottom Up
Overall Org. objectives

More specific Overall obj.

Divisional Objective

Departmental and Unit objective

Individual Objectives
Steps in Goal Setting
 Review the organization's °  
 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
 Review results and whether goals are being
met

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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.
Steps in MBO
 Setting Organizational purpose and
objectives
 Identifying Key Result Areas (KRAs)
 Setting subordinate¶s objectives
 Matching Resources with objectives
 Appraisal
 Recycling
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Benefits of MBO

 Better Managing
 „larity in Organizational action
 Personal satisfaction
 Basis for Organizational change
‘imitations of MBO
 Time and „ost
 Failure to teach MBO philosophy
 Problem in objective setting
 Emphasis on short term objectives
 Inflexibility
 Frustration
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
 „onflicting Objectives
„riticisms of P‘ANNING
 Planning may create rigidity
 Plan¶s can¶t be developed for dynamic
environment
 Formal plans can¶t replace intuition and
creativity
 Planning focus manager¶s attending on
today¶s competition, not on tomorrow¶s
 Formal planning reinforces success, which
may lead to failure.

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