 thus ensuring a more communicative platform and motivates the employees to provide a better output performance.
The essential steps taken in management by objectives are:
- Clear formulation of overall objectives of the organization.
- Division of resources and workforce and compartmentalizing the goals as per the specific skill set of the concerned department.
- Accurate specifications of each sub-goal due to mutual planning.
- Effective collaboration between all the departments and necessary amendments as per their recommendations.
- Implementation of the decision and periodic review and feedback. Based on the comparative performance analysis, rewards are handed out to the most influential employees, thus effecting overall company performance.
Goal setting steps
A goal has to be good enough to be worth the time and effort spent behind it. So what does a good goal entail? Experts say that a well-written goal can help reduce communicative barriers, and streamline the synchronization of various department working together to reach a common goal. The characteristics of well written goals are:
- They must be outcome oriented instead of actions.
- The goals must provide the manager with a sufficient challenge to make his job interesting, but not so complex that it cannot be feasibly attained within the deadline.
- Proper communication and clarification of goals to all concerned organizational employees is very to maintain efficiency.
- The time duration must be clearly specified to formulate plans accordingly.
Any business decision requires a setting of goals to obtain maximum efficiency while its implementation. Goals remove the ambiguity present in a problem, and provide a clear, concise view to choose the best approach in order to achieve it. So how do managers set goals in big companies? Here are a few pointers:
- Goals should reflect the organization’s mission. A mission provides a guide for what is perceived as important within that organization. Any goals should be formulated while keeping the mission in mind.
- Make realistic goals. Accommodate the goals as per the resources available. If resources available are insufficient, then the goals cannot be achieved, despite all efforts to make it so.
- Goals can be determined by one person or by a group of people working together towards a common objective. The main features of set goals should be congruency with the mission, and all defining criteria such as time frames, specific objectives in organizational areas.
- Writing the objectives down can prove to be effective for immediate action. Sharing your objective with other members in your work space and coming with alternatives through group discussion is important in working towards fulfillment.
- Amend your goals as per their ability to full the preset objectives. Realistic interpretation of the situation is very important in review and amendment of goals.
Process of plan development
How did managers like Policastro know about the plans needed to be formulated during such an unprecedented events like the Haiti quakes? What are the necessary steps needed to be taken? How will they factor in the constraints of geography into their decision making process?
In any investments, there are certain risks and uncertainties in the world scenario which need to be considered for an effective plan. The ever-changing landscape of corporate scenes worldwide means that there will be no shortage of unexpected twists and turns while arriving at an objective. Hence, while coming up with a plan, managers tend to focus on a few contingency factors. These are:
- The level of the manager: in the hierarchy of an organization, the position of a manager defines what his responsibilities are and what kind of plans he has to make in order to fulfill them. Top level executives formulate the company mission; new avenues to explore etc. while lower-level managers keep the operation running smoothly ensuring efficient overall performance. The level of the manager decides his role in goal setting and planning.
- Uncertainty: environmental uncertaint