Objectives of management

Objective of Management

1. Objectives
Meaning
An Objective is a specific commitment to
achieve a measurable result within a
preset deadline.
Nature of Objectives
Objectives tends to constitute a hierarchy
as well as a network.
A hierarchy ranges from a broad aim to
achieving specific targets.

2. Vision,Mission, Goals, Strategy
Vision
It is the long term goal of a company. For
instance, a newly formed commercial
bank might have a vision to become
among the top 3 local PCBs in its’ 10th
year of operation.

3. Vision,Mission, Goals, Strategy
Mission: The UN has started out a mission to
restore peace in the war devastated Iraq.
Mission in the context of management
means the specific business a company
involves in, the target customers it serves.
Very often it is expressed in company’s
campaign. Also it is conveyed to the
shareholders through annual report. How a
company commits to serve the customers,
community or environment – forms a part of
mission statement.

4. Vision,Mission, Goals, Strategy
Goal / objective
Goal or objective are used
interchangeably. The main goal for every
company could simply be put as profit
goal. Besides, profit companies have
other equally important goals, like growth,
market share, social responsibility,
environmental responsibility, etc.
Focusing more on profit goal could instill
unfair practices in the organization.

5. Vision,Mission, Goals, Objectives
Strategy
This is basically a war field terminology
which means a line of attack to combat
the rivals. This term has been warmly
accepted and widely used as a business
jargon. In the field of business no
company can ignore the existence of its
rival and being successful means that
company X has outperformed company Y

6. Management by Objectives (MBO)
MBO is defined as “the comprehensive
managerial system that integrates many key
managerial activities in systematic manner
and that is consciously directed toward the
the effective and efficient achievement of
organizational and individual objectives.”

7. The MBO Cycle
Step 1: Setting Objectives: It starts at the top
of the managerial pyramid and filter down one
layer at a time.
It emphasizes on participation and
involvement of subordinates.
Step 2: Developing Action Plan: Action plan
at each level of mgt. should be objective
oriented and complementing to each other
and not coflicting.

8. The MBO Cycle (contd.}
Step 3: Periodic Review: To see whether the
set objective is still valid or need revision.
Step 4: Performance Appraisal: Evaluation of
performance and appropriate response to
success and failure.

9. Effective implementation of MBO
program
Organization culture:
culture that encourages individual
initiative and risk taking is compatible to
MBO. Since it is based on participative
decision making, it has to hold respect for
others sense of responsibility and
accountabilitry

10. Effective implementation of MBO
program
Commitment at the top:
MBO must practice performance based
reward policy. Sometimes a popular
manager could be non-performer, whereas
a task oriented autocratic manager could be
the achiever. If reward policy favors
nepotism rather performance the internal
design of MBO ‘d just collapse.

11. Effective implementation of MBO
program
Type of organization:
For public organization it is almost
impossible to implement MBO than in the
business organization. Because different
kinds of regulatory maters are involved in it’s
reward design.

12. Behavioral Principles for Motivation
Principle of participation: When employees are
allowed a role in decision making.
Principle of feedback: To let the employees know
where they stand
Principle of reciprocal interest: When the pursuit of
org. goal goes hand in with the achievement of
personal objectives.
Principle of recognition: Recognition of
achievements motivate the employees.