The vision and mission of the company described the raison d'être of the organization. The objectives, however, represent the end results or the organization intends or wishes to achieve. They are part of the planning process and apply to certain periods of time. Most long-term objectives in the companies, according to David, can be classified as financial (business area) or strategic (other areas of the organization). Both are targets (official statements), but sometimes come into conflict with the real objectives (what is actually intended and are defined by the actions of members of the organization) (2). 1. Classes of targets.
At first glance it would seem that organizations have one goal: for commercial companies, utilities, for nonprofit organizations: meeting the needs of their constituent groups. In reality, all organizations have multiple objectives. The companies also want to increase their market share and encourage the enthusiasm of the employees for their organization. An emphasis on one goal (and profits), leaves out others that also should be met to achieve long term success. According to Robbins, among the goals that an organization can set are the economic and strategic goals. Economic goals relate to the financial performance of the organization, whereas strategic concern to other areas of your performance. Another way to describe the goals is for its time frame: short, medium or long term as well as its specificity and frequency of use: specific technical or permanent. Methods for targeting.
Understood that the objectives or goals set the direction for all management decisions and actions should be set and show the entire organization. 1.1. Traditional fixation targets.
The objectives are defined by the direction of an organization and then are divided into sub-goals for each level of the same. According to this traditional, the directors know what is best because they see the "big picture." Thus the objectives or goals cascade to each successive level to direct, guide and, in some sense, restrict job performance of employees. This method of setting goals that employees consider work to meet the objectives assigned to them in their areas of responsibility.
One of the problems of the traditional approach is that if managers define the goals of the organization in broad and ambiguous terms (get "enough" profit or increase the market leadership) have to make them more specific as they descend by the organization. At each level managers define goals, and make them more specific to apply their own interpretations and biases. However, what often happens is that the goals lose clarity and unity to move from management to lower levels. Figure No. 1 shows what can happen in these situations:
Figure No. 1
When the hierarchy of organizational goals clearly defined, is an integrated network of goals, means-end chain. This means that higher level goals (or ends) are linked to lower-level goals, which are the means to achieve them.
1.2. Management by objectives (APO).
Instead of the traditional method of setting objectives, many organizations adhere to the management by objectives is a system in which employees and their managers determine specific performance targets are regularly reviewed progress toward these goals and are distributed rewards according to that progress. Rather than taking the goals as controls, the APO also serves to motivate employees.
Management by objectives has four elements:
specificity of goals,
Its appeal is that the targets are set with the participation of individuals and this is the reason and motivation for their efforts. The following table shows the steps of a typical APO (1):
1. Defines the objectives and strategies of the organization. 2. The main objectives are assigned to units, divisions and departments. 3. The unit managers set objectives...