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.

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.

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.

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.

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

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.”

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.

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.

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

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.

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.

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.