THE NATURE OF ORGANIZATIONAL OBJECTIVES

Organizational Objective; A target towards which organization directs its efforts. Types of Organizational Objectives Short Run Objectives: targets that the organization is attempting to reach within about one or two years. Long Run Objectives; targets that reach the organization is trying to reach within about three to five years. The Importance of Organizational Objectives Guide in Decision Making Guide for Increasing Organizational Efficiency Guide for Performance Appraisal

Difference Between Goals & objectives

Definition Goals; are long-term aims that you want to accomplish. Objectives; are concrete attainments that can be achieved by following a certain number of steps. Difference between goals and objectives Goals are broad objectives are narrow. Goals are general intentions; objectives are precise. Goals are intangible; objectives are tangible. Goals are abstract; objectives are concrete. Goals can't be validated as is; objectives can be validated. Summary: Goals & objectives are tools for accomplishing what you want to achieve. Goals are long term and objectives are short or medium term. Goals are immeasurable whereas the success of an objective can easily be measured. Goals are hard to quantify (numerically & time wise), but objectives contain both.

Areas in Which Organizational Objectives Are Established

Market Standing; the position of an organization where it stands relative to its competitors. Innovation; any change made to improve methods of conducting organizational business. Productivity; the level of goods or services produced by an organization relative to the resources used in the production process. Resource Levels; the relative amounts of various resources held by an organization such as inventory, equipment, and cash. Profitability; the ability of an organization to earn revenue dollars beyond the expenses necessary to generate the revenue. Manager Performance and Development; the quality of managerial performance and the rate at which managers are developing personally. Work Performance and Development; the quality of non-management performance and such employees feelings about their work. Social Responsibility; the obligation of business to help improve the welfare of society while it strives to reach organizational objectives.

Characteristics of High Quality Organizational Objectives

Specific Objectives; Managers should develop organizational objectives that are specific. Specific objectives indicates exactly what is to be accomplished, who is to accomplish it, and within what time frame it is to be accomplished. Desirable Level of Effort; Managers should set organizational objectives that require a desirable level of effort. Objectives should be set high enough so that employees must extend themselves somewhat to achieve them. Reachable / Attainable; Managers should establish organizational objectives that are reachable. Flexible Objectives; Managers should establish organizational objectives that are flexible. Objectives should be established with the understanding that they might have to be modified. Measurable; Managers should establish organizational objectives that are measurable. A measureable objectives, sometime called an operational objectives. Consistent; Managers should develop organizational objectives that are consistent in the long run and the short run. Managers should establish organizational objectives that reflect a desirable mix of time and frames and are supportive of one another.

THE PROCESS OF ESTABLISHING ORGANIZATIONAL DIRECTION

Process Steps Step 1: Reflecting on the Results of an Environmental Analysis; Environmental analysis should provide managers with adequate information for refection. Step 2: Developing an Appropriate Organizational Mission; Information derived from the environmental analysis serves as a solid foundation on which the organizational mission can be built. Step 3: Developing Appropriate Organizational Objectives; after the organizational mission has been developed, appropriate organizational objectives that are consistent with mission must be formulated. Four suggested steps are: Step 1; Analyzing significant trends within the environments Step 2; Developing objectives for the organization as a whole Step 3; Creating hierarchy of objectives Step 4; Developing individual objectives

MISSION

LONG-RUN OBJECTIVES

SHORT-RUN OBJECTIVE

Great scot supermarkets is a progressive growthoriented company recognized as a regional leader in retail foods. We will continue to strive to improve our responsiveness to the needs and concerns of our customers, employees, suppliers and the communities in which we serve. This will be accomplished through the development of our employees an emphasis on volume and profitability. We intend to expand within our existing marketing areas to both protect and improve our positions. As personnel and finance are adequate and opportunities arise our growth will continue in other areas

Make Great Scot above the grocery store industry average for profitability
Servers as foundation for Servers as foundation for

Achieve major reductions in wage expenses Reduce warehouse expenses Buy quality products at lower costs Review and evaluate sales run by competition Match prices offered by competition on high volume items Encourage store tours by community groups Conduct training programs for cashiers Maintain competitive wage rates Advertise job opening in trade publications

Improve competitive position within market areas

When accomplished results in the accomplishment

When accomplished results in the accomplishment

Develop and hire employees for present as well as future needs

Analyzing Environmental Trends

Environmental Trends Organizational objectives should change as organizational environment changes, thus objectives should take into account the changing environmental trends environmental trends. Index of Industrial Production is one trend which managers take into account. This index represents the output of industrial concerns of a nation and is the general indicator of health of nations economy. Developing Objectives for the Organization as a Whole; After identifying significant environmental trends, it is possible to develop objectives for the organization as a whole, generally 15 types of objectives are considered, but most important one is Profitability Objectives. Developing Hierarchy of Objective; It is the set of organizational objectives that includes objectives for the organization & corresponding objectives for the significant segments of the organization. Developing Individual Objectives; It generally refers to sub-objectives for significant organizational segments e.g Divisions & Departments. It further goes down to Individual Objectives for the specific people in the organization.