Objectives from a Hierarchy:
In many organizations objectives are structured in a hierarchy of importance. There are objectives within objectives. They all require painstaking definitions and close analysis if they are to be useful separately and profitable as a whole. The hierarchy of objectives is a graded series in which an organization’s goals are supported by each succeeding managerial level down to the level of the individual. The objectives of each unit contribute to the objectives of the next higher unit. Each operation has a simple objective which must fit in and add to the final objective. Hence no work should be undertaken unless it contributes to the overall goal.
Objectives Form a Network:
Objectives interlock in a network fashion. They are interrelated and inter-dependent. The concept of network of objectives implies that once objectives are established for every department and every individual in an organization, these subsidiary objectives should contribute to meet the basic objectives of the total organization. If the various objectives in an organization do not support one another, people may pursue goals that may be good for their own function but may be detrimental to the company as a whole. Managers have to trade off among the conflicting objectives and see that the components of the network fit one another as rightly pointed out by Koontz et al. It is bad enough when goals do not support and interlock with one another. It may be catastrophic when they interfere with one another.
Multiplicity of objectives:
Organizations pursue multifarious objectives. At every level in the hierarchy goals are likely to be multiple. For example the marketing division may have the objective of sale and distribution of products. This objective can be broken down into a group of objectives for the product advertising, research, promotion managers. The advertising manager’s goals may include: designing product messages carefully, create a favorable image of the product in the market etc. Similar goals can be set for other marketing managers. To describe a single, specific goal of an organization is to say very little about it. It turns out that there are several goals involved. This may be due to the fact that the enterprise has to meet internal as well as external challenges effectively. Internal problem may hover around profitability, survival, growth and so on. External problems may be posed by governments, society, stockholders, customers etc. In order to meet the conflicting demands from various internal and external groups, organizations generally pursue multiple objectives. Moreover no single objective would place the organizations on a path of prosperity and progress in the long run.
In many organizations objectives are structured in a hierarchy of importance. There are objectives within objectives. They all require painstaking definitions and close analysis if they are to be useful separately and profitable as a whole. The hierarchy of objectives is a graded series in which an organization’s goals are supported by each succeeding managerial level down to the level of the individual. The objectives of each unit contribute to the objectives of the next higher unit. Each operation has a simple objective which must fit in and add to the final objective. Hence no work should be undertaken unless it contributes to the overall goal.
Objectives Form a Network:
Objectives interlock in a network fashion. They are interrelated and inter-dependent. The concept of network of objectives implies that once objectives are established for every department and every individual in an organization, these subsidiary objectives should contribute to meet the basic objectives of the total organization. If the various objectives in an organization do not support one another, people may pursue goals that may be good for their own function but may be detrimental to the company as a whole. Managers have to trade off among the conflicting objectives and see that the components of the network fit one another as rightly pointed out by Koontz et al. It is bad enough when goals do not support and interlock with one another. It may be catastrophic when they interfere with one another.
Multiplicity of objectives:
Organizations pursue multifarious objectives. At every level in the hierarchy goals are likely to be multiple. For example the marketing division may have the objective of sale and distribution of products. This objective can be broken down into a group of objectives for the product advertising, research, promotion managers. The advertising manager’s goals may include: designing product messages carefully, create a favorable image of the product in the market etc. Similar goals can be set for other marketing managers. To describe a single, specific goal of an organization is to say very little about it. It turns out that there are several goals involved. This may be due to the fact that the enterprise has to meet internal as well as external challenges effectively. Internal problem may hover around profitability, survival, growth and so on. External problems may be posed by governments, society, stockholders, customers etc. In order to meet the conflicting demands from various internal and external groups, organizations generally pursue multiple objectives. Moreover no single objective would place the organizations on a path of prosperity and progress in the long run.
Long and short range objectives:
Organizational objectives are usually related to time. Long range objectives
extending over five or more years are the ultimate or dream objectives for the
organization they are abstractions of the entire hierarchy of objectives of the
organization. For example planning in India has got objectives like eradication
of poverty , checking population growth through birth control etc. which
reflect certain ideals the government wishes to accomplish in the long run.
Short range objectives (one year goals) and medium range objectives (two to four
year period goals) reflect immediate attainable goals. The short range and
medium range objectives are the means for achieving long term goals and the
long term goals supply a framework within which the lower level goals are
designed. Thus, all these goals reinforce each other in such a way that the
total result is greater than the sum of the efforts taken individually. That is
why goal setting is called a synergistic process. In order to remain viable,
every organization needs to set goals in all three time periods.
Objectives:
·
Important end towards which an organisation and its individual
activities are directed.
goals=objectives
·
Objective should be verifiable when at the end of the period one can
determine whether or not it has been achieved.
Nature of objective:
* End result
* long term and short term objective
* hierarchy
* network
Hierarchy
Of Objective:
MBO
lManagement by objectives (MBO) is a systematic and organized approach
that allows management to focus on achievable goals and to attain the best
possible results from available resources.
It aims to increase organizational performance by aligning goals
and subordinate objectives throughout the organization.
Ideally, employees get strong input to identify their objectives, time
lines for completion, etc.
MBO includes ongoing tracking and feedback in the
process to reach objectives.
lManagement by Objectives (MBO) was first outlined by Peter Drucker in
1954 in his book 'The Practice of Management'.
In the 90s, Peter Drucker himself decreased the significance of this
organization management method, when he said: "It's just another tool.
It is not the great cure for management inefficiency... Management by
Objectives works if you know the objectives,
90% of the time you don't."
lThe principle behind Management by Objectives (MBO) is to make sure that
everybody within the organization has a clear understanding of the aims, or
objectives, of that organization, as well as awareness of their own roles
responsibilities in achieving those aims. The complete MBO system is to get
managers and empowered employees
acting to implement and achieve their plans, which automatically achieve those
of the organization.
Advantages of MBO
¡Effective Planning
& Control
¡Reveals
organisational deficiencies
¡Elicits people’s
commitment
¡Demonstrates
objectivity and reduces element of judgment
Limitations of MBO
¡Presupposes fixing of
individual responsibilities
¡It is difficult to
make comparative ratings of individuals because each individual goals are
different from others
¡Time consuming
¡Presumes a certain
level of trust throughout the hierarchy
¡Less applicable in
routine jobs.
Reasons for failure of MBO
¡Absence of a fully
committed and involved top management.
¡Dictatorial rather than participatory
development of management objectives
