Module 5: Goals and objectiveshgyang/SM-M05.pdf · 5.2.2 Goals and objectives of organizational...
Transcript of Module 5: Goals and objectiveshgyang/SM-M05.pdf · 5.2.2 Goals and objectives of organizational...
Module 5:
Goals and objectives
Yi-Chih Yang
Professor, Department of Shipping and
Transportation Management,
National Kaohsiung University of Science and
Technology
Allison James Lecture, Maritime and Logistics Management
University of Tasmania
(Lecture materials were amended based on
2003 cooperation teaching project between
NKMU and AMC)
Outline
5.1 Introduction
• 5.2.1 Goals versus objectives
• 5.2.2 Goals and objectives of organizational levels
• 5.2.3 Subsuming goals under missions
• 5.2.4 Developing realistic objectives
5.2 Goals and objectives
5.3 Conclusion
5.1 Introduction
The analysis of the organization’s strengths and
weaknesses and the development of a mission
statement are only part of the process of strategic
management. The mission statement needs
something to drive it. Together, goals and
objective drive the organization towards the
ultimate fulfillment of its mission.
5.1 Introduction
Briefly, goals are general statements of what the
organization seeks to achieve ; objectives identify
more specific and measurable outcomes that are
necessary to meet these goals. Goals and
objectives in strategic management are the
targets that an organization sets out to achieve.
5.1 Introduction
Objectives are the end results of planned activity. They state
what is to be accomplished by when and should be quantified if
possible. The achievement of corporate objectives should result
in the fulfillment of a corporation's mission. Minnesota Mining&
Manufacturing(3M), for example, has set very specific financial
objectives for itself :
1.To achieve 10%annual growth in earnings per share.
2. To achieve 20%-25%return on equity.
3. To achieve 27%return on capital employee.
5.2 Goals and objectives
In the introduction to this module, we briefly
defined goals as general statements of what the
organization seeks to achieve by way of its
mission ; objectives identify more specific and
measurable outcomes that are necessary to meet
these goals.
Figure1
Mission,
goals and
objectives
5.2.1 Goals versus objectives
5.2.1 Goals versus objectives
Goals are general statements of what we must
do to make our mission come true ; they are
broader in scope and more long term in outlook
than objectives.
Objectives take us right into the realm of
accountability: to achieve each goal we must
specify precisely what it is we must do, for how
long or how frequently, at what level of
performance, and so on.
Top level of the organization
The mission, strategic goals and objectives must
be set at the very top level of the
organization(enterprise and corporate levels for
diversified companies ; combined enterprise,
corporate and business level for single-business
companies.)
5.2.2 Goals and objectives of organizational levels
Business level of a diversified organization
For a diversified company, each business unit
must then develop its own mission, goals and
objectives on the basis of the organization’s
overall mission, goals and objectives.
Functional level of an organization
For any type of company, diversified or not, the
functional areas of a business can also develop
their own mission, goals and objectives. These
must directly support the business’s mission,
goals
Figure2 Developing mission, goals and
objectives according to organizational level
5.2.3 Subsuming goals under missions
Example 1: AYS(At Your Service) Port Authority
Mission:
To prove and manage port resources in a commercial
manner, to meet the needs of port users, to promote
the efficient flow of trade to and from the Port
hinterland and to utilize its resources in ways which
are most beneficial to the community.
5.2.3 Subsuming goals under missions
Goals: Community: be responsive to community expectations
Employees: recruit, develop and maintain a highly
motivated workforce committed to the objectives of the
authority be self sufficient and financially viable
Financial: ensure that the necessary facilities are
provided to enable
Infrastructure: efficient and safe operations
Operation: optimize the use of port facilities and
services
Trade: maximize port trade
5.2.4 Developing realistic objectives
Objectives are refinements of goals; if goals are
incorporated in the mission statement, then we can
say objectives are refinements of the mission.
Objectives provide a basis for monitoring progress
towards the mission( or goals).
Set SMART objectives. SMART is a clever
mnemonic device developed by Blanchard et al
(1987) in their book Leadership and the One
Minute Manager. It means:
5.2.4 Developing realistic objectives
Specific:exactly what is to be achieved?
Measurable:how can it be measured, what standard
performance measures or targets will we use to make
it measurable?
Achievable:what will stretch us and yet still be
attainable or realistic?
Relevant : is it of critical importance? Will it help us
achieve our mission(or goals)?
Traceable:when will it be achieved; what time-frame
will we use or set? How can we track performance ?
5.2.4 Developing realistic objectives
In the maritime industry, strategic objectives are likely
to cover the following areas:
− profitability
− market position
− innovation
− productivity
− physical and financial resources
− public/social responsibility
− manager performance and development
− employee performance and attitude
− international / global competitive position
5.3 Conclusion
Goals are broad statements of what the organization
must achieve to realize its mission. As such, they are
long term in outlook.
Objectives are statements that help guide the activities
of the organization towards the attainment of its goals
(or mission, if goals are part of the mission).Therefore,
they become the targets against which performance is
measured.
Always set SMART objectives-that is, make them smart,
measurable, achievable, relevant and traceable. Equally,
always evaluate objectives according to this same set of
criteria.
• OOCL has 4 core values that are central
to everything the company does. The core
values are:
People, People, PeopleCustomer
FocusExcellence Through
QualityCommunity Responsibility
Evergreen shipping line
• Our Vision
• "We will not wait for legislation to be
introduced. We will use the latest
technology as soon as it is available so as
to minimize the impact of container
shipping operations both on marine life, on
port communities and on humanity
worldwide."
PSA international
• Our Mission
• To be the port operator of choice in the
world’s gateway hubs, renowned for best-
in-class services and successful
partnerships.
DP world
• OUR VISION
• To Lead the Future of World Trade.
• OUR PURPOSE
• To Add Value, Think Ahead and Build a
Legacy.
• Our Values
• Committed to Excellence
We set new standards by continuously improving results
and innovating in every aspect of our business.
• Dedicated to Customers
We help our customers, external and internal, succeed
by anticipating and meeting their needs.
• Focused on People
We win as a team by respecting, nurturing and
supporting one another.
• Integrated Globally
We build our strength globally by embracing diversity
and optimising operations locally.
China COSCO shipping
• Corporate vision:
• undertake the mission of globalizing Chinese
economy, consolidate advantageous resources,
take global shipping, integrated logistics, and
shipping related financial services as core
business while diversified industrial clusters
grow together, so as to build a world-leading
business that provides integrated logistics and
supply chain services.
Thank for your Attention
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