Objectives and setting objectives

This presentation discusses about in Principles of Management

1. OBJECTIVES AND
SETTING OBJECTIVES
R.Arun Kumar, AP/Mech, RIT

2. DEFINITIONS :
Objectives are those ends which the organizations seeks to
achieve by its existence and operations.
Objective is a specific commitment to achieve a measurable
result within a specified time.
R.Arun Kumar, AP/Mech, RIT

3. Characteristics of Organizational Objectives:
Multiplicity
Hierarchy
Networking
Time dimension
Quantifiable and non – quantifiable objectives.
Social sanction
R.Arun Kumar, AP/Mech, RIT

4. Characteristics of Organizational Objectives:
1. Multiplicity:
Multiplicity of objectives trigger the problem of fixing
priorities and harmonizing them.
R.Arun Kumar, AP/Mech, RIT

5. Characteristics of Organizational Objectives:
2. Hierarchy: (Top – down and bottom – up approaches)
Objectives are framed across different levels of an
organization.
e.g. achieving profit, improving shares – top level management
cost reduction, waste management – middle level management
reducing absenteeism, maintenance – low level management
R.Arun Kumar, AP/Mech, RIT

6. Characteristics of Organizational Objectives:
3. Networking:
Objectives are intertwined and networked with one other.
e.g. Marketing, HR and Production.
R.Arun Kumar, AP/Mech, RIT

7. Characteristics of Organizational Objectives:
4. Time dimension:
Objectives are time bound.
e.g. short term, long term, intermediate term.
R.Arun Kumar, AP/Mech, RIT

8. Characteristics of Organizational Objectives:
5. Quantifiable and non – quantifiable:
Objectives based on numbers are called quantifiable.
Objectives based on quality are called as non – quantifiable.
e.g. Improving productivity, increasing profit to certain number.
Improving job satisfaction, enhancing quality of products.
R.Arun Kumar, AP/Mech, RIT

9. Characteristics of Organizational Objectives:
6. Social sanction:
Objectives will confirm to general needs of the society.

R.Arun Kumar, AP/Mech, RIT

10. Importance and role of objectives:

Legitimacy
Sense of direction
Motivational aid
Control mechanism
Co – ordination
Unifying force
R.Arun Kumar, AP/Mech, RIT

11. Importance and role of objectives:
1. Legitimacy
They describe the purpose of an organization.
They provide the identity to an organization.
R.Arun Kumar, AP/Mech, RIT

12. Importance and role of objectives:
2. Sense of direction:
Provides the guide way towards the target.
Every employee must have clear idea about what he/she is
supposed to do in his/her job.
R.Arun Kumar, AP/Mech, RIT

13. Importance and role of objectives:
3. Motivational aid:
Apart from incentives and rewards, objective of an organization
will be the driving force to attain a goal.
R.Arun Kumar, AP/Mech, RIT

14. Importance and role of objectives:
4. Control mechanism:
Being a driving force, objectives restricts employees from
deviation.
R.Arun Kumar, AP/Mech, RIT

15. Importance and role of objectives:
5. Co – ordination:
Objectives serve as unifying force for an organization.
e.g. executives coordinates the efforts of their subordinates.
R.Arun Kumar, AP/Mech, RIT

16. Importance and role of objectives:
6. Uniqueness:
They are core force to planning.
They serve as reference points for the formulation of policies,
strategies, procedures, etc.
R.Arun Kumar, AP/Mech, RIT

17. SETTING OBJECTIVES :

R.Arun Kumar, AP/Mech, RIT

18. SETTING OBJECTIVES :
Setting objective must meet following criteria:
1.Should be consistent with the values of management.
2.Should pin point strength of an organization.
3.Should satisfy external environment factors.
R.Arun Kumar, AP/Mech, RIT

19. Objective setting guidelines:
Objectives should be clear and specific.
Should be expressed in measurable terms.
Objectives should be attainable and realistic.
Objectives should be time bound.
Should be whole heartedly accepted by employees.
Objectives should be challenging.
Objectives should have sub-goals and linked to rewards.
Objectives should be inter – connected and mutually
supportive.
Objectives should be flexible and adaptable.
It should be set down in all key – result areas.
R.Arun Kumar, AP/Mech, RIT

20. Benefits of objectives formulation:
Sets specific target.
Provides direction for employee.
Increases staff motivation.
Helps to focus on specific task.
Builds relationship.
Helps to measure the performance of employee.
Helps to prioritize.
Enables the success to be measured.
R.Arun Kumar, AP/Mech, RIT

21. Limitations in objectives formulation:
Immeasurability
Inadequate resource allocation
Stress on employee
Neglecting ground reality
Avoiding consultation
Unclear and rigid objective
Time constraint
R.Arun Kumar, AP/Mech, RIT

22. SMART Objectives:
R.Arun Kumar, AP/Mech, RIT