Goals
Goals are what an organisation hopes to accomplish in a future period of time .Goals adress a broad category of financial and non-financial issues.Goals are general statements about overall growth, survival and profitability of business, for a longer period of time and do not describe specific targets. Goals may be of qualitative nature and difficult to measure and control.
Objectives
objectives are desired outcomes /targets in specific relevant areas that the organisation wants to achieve during a fixed time period.
Objectives are concrete and specific in contrast to goals that are generalized.Objectives make the goals Operational, while goals may be qualitative objectives are mainly quantitatively expressed and are measurable and comparable.
Objectives are statement of result, a firm seeks to achieve over a specific period of time.
Area-------------------------------------------------------> Target
Time Period
The areas in which objectives should be set may be focused to internal or external aspects of organisation
for example an objective may look alike this-
Objective Example 1: Create new-to-the-world products that exceed the needs of the existing new market spaces and increase the revenue stream of such endeavors by $10 million by 2012.
Objective Example2 : Reduce the amount of toxic substances used in the production of products by 90% over next ten years.
PROCESS OF OBJECTIVE FORMULATION
Balanced Score Card (B.S.C) Approach to objective formulation
Developed by R.S Kaplan and David Norton of Harvard Business School, B.S.C is used as performance management system , also is a set of measures that are directly related with strategy to link it long term strategy with tangible goals and and actions.B.S..C allows a manager to evaluate the company from four Perspectives
financial Performance
Customer Knowledge
Internal Business Process
Learning and Growth
If objectives are to be set then it is necessary to understand and focus attention on financial, customer, Learning and Growth and Internal Business perspectives. This method gives a balanced view to objective setting.
Characteristics of Good Objectives
Acceptable
flexible
Measurable
Motivating
Suitable
Achievable.
Goals are what an organisation hopes to accomplish in a future period of time .Goals adress a broad category of financial and non-financial issues.Goals are general statements about overall growth, survival and profitability of business, for a longer period of time and do not describe specific targets. Goals may be of qualitative nature and difficult to measure and control.
Objectives
objectives are desired outcomes /targets in specific relevant areas that the organisation wants to achieve during a fixed time period.
Objectives are concrete and specific in contrast to goals that are generalized.Objectives make the goals Operational, while goals may be qualitative objectives are mainly quantitatively expressed and are measurable and comparable.
Objectives are statement of result, a firm seeks to achieve over a specific period of time.
Area-------------------------------------------------------> Target
Time Period
The areas in which objectives should be set may be focused to internal or external aspects of organisation
for example an objective may look alike this-
Objective Example 1: Create new-to-the-world products that exceed the needs of the existing new market spaces and increase the revenue stream of such endeavors by $10 million by 2012.
Objective Example2 : Reduce the amount of toxic substances used in the production of products by 90% over next ten years.
PROCESS OF OBJECTIVE FORMULATION
Balanced Score Card (B.S.C) Approach to objective formulation
Developed by R.S Kaplan and David Norton of Harvard Business School, B.S.C is used as performance management system , also is a set of measures that are directly related with strategy to link it long term strategy with tangible goals and and actions.B.S..C allows a manager to evaluate the company from four Perspectives
financial Performance
Customer Knowledge
Internal Business Process
Learning and Growth
If objectives are to be set then it is necessary to understand and focus attention on financial, customer, Learning and Growth and Internal Business perspectives. This method gives a balanced view to objective setting.
Characteristics of Good Objectives
Acceptable
flexible
Measurable
Motivating
Suitable
Achievable.
No comments:
Post a Comment