objective

A specific result that a person or system aims to achieve within a time frame and with available resources. In general, objectives are more specific and easier to measure than goals. Objectives are basic tools that underlie all planning and strategic activities. They serve as the basis for creating policy and evaluating performance. Some examples of business objectives include minimi ing expenses, expanding internationally, or ma!ing a profit.

HIERARCHY OF OBJECTIVES

-The obiectives of a company can be structured into a hierarchy. Hierarchy in this sense means organized objectives or successive grades. -Objectives may be arranged in particular order from higher to lower level. -The objective at the top level provide the basis for setting the objectives or the second level which in turn becomes the basis for objective at the third level and so on. -For example a company may have the overall objective at the higher level to earn a fair rate of return by manufacturing and mar!eting "umerically #ontrolled machine tools. -$f we go down the hierarchy we shall find that the major objective followed by different departments focuses in designing and creating the form of "# machine tools. -%t the next level there may be intermediate objectives

concerned with manufacturing and assembling the major components. -%t the lowest level the objective of the individuals consist of performing the detailed wor! on components. $n this way the objectives at various levels are integrated and follow a logical se&uence to achieve the overall objective of the company.
It is an modern method of performance appraisal.in simple words management by objective is an process by which they see an organisational goals and one who do there work best is apprised not only the workers but management as well. So we can write process as: Set organisational goal - joint goal setting - performance review - set check posts - feed back. So in conclusion we may say it has three foundations: Goal setting feedback participation Advantages: .! "elps and increases employees motivation. #.! $anagers are more likely to compete with other manager. %.! It reduces conflicts and ambiguity. &.! It leads to good 'lanning. (.! Identify problems. ).! *evelop leadership qualities. *isadvantages: .! +ailure to give guidelines to goals. #.! *anger of infle,ibility. %.!+ailure to teach philosophy of $-.. &.! $anagers compitition may lead to tug of war.

5. Steps Involved In Decision Making Process

'ecision-ma!ing involves a number of steps which need to be ta!en in a logical manner. This is treated as a rational or scientific (decision-ma!ing process( which is lengthy and time consuming. )uch lengthy process needs to be followed in order to ta!e rational*scientific*result oriented decisions. 'ecision-ma!ing process prescribes some rules and guidelines as to how a decision should be ta!en * made. This involves many steps logically arranged. $t was +eter 'ruc!er who first strongly advocated the scientific method of decision-ma!ing in his world famous boo! (The +ractice of ,anagement( published in -.//. 'ruc!er recommended the scientific method of decision-ma!ing which according to him involves the following six steps0

-. 1. 2. 3. /. 4.

'efining * $dentifying the managerial problem %nalyzing the problem 'eveloping alternative solutions )electing the best solution out of the available alternatives #onverting the decision into action and 5nsuring feedbac! for follow-up.

The figure given below suggests the steps in the decision-ma!ing process0-

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$dentifying the +roblem0 $dentification of the real problem before a business enterprise is the first step in the process of decision-ma!ing. $t is rightly said that a problem well-defined is a problem half-solved. $nformation relevant to the problem should be gathered so that critical analysis of the problem is possible. This is how the problem can be diagnosed. #lear distinction should be made between the problem and the symptoms which may cloud the real issue. $n brief the manager should search the (critical factor( at wor!. $t is the point at which the choice applies. )imilarly while diagnosing the real problem the manager should consider causes and find out whether they are controllable or uncontrollable.

1.

%nalyzing the +roblem0 %fter defining the problem the next step in the decision-ma!ing process is to analyze the problem in depth. This is necessary to classify the problem in order to !now who must ta!e the decision and who must be informed about the decision ta!en. Here the following four factors should be !ept in mind0

-. 1. 2. 3. 2.

Futurity of the decision The scope of its impact "umber of &ualitative considerations involved and 6ni&ueness of the decision. #ollecting 7elevant 'ata0 %fter defining the problem and analyzing its nature the next step is to obtain the relevant information* data about it. There is information flood in the business world due to new developments in the field of information technology. %ll available information should be utilised fully for analysis of the problem. This brings clarity to all aspects of the problem.

3.

'eveloping %lternative )olutions0 %fter the problem has been defined diagnosed on the basis of relevant information the manager has to determine available alternative courses of action that could be used to solve the problem at hand. Only realistic alternatives should be considered. $t is e&ually important to ta!e into account time and cost constraints and psychological barriers that will restrict that number of alternatives. $f necessary group participation techni&ues may be used while developing alternative solutions as depending on one solution is undesirable.

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)electing the 8est )olution0 %fter preparing alternative solutions the next step in the decision-ma!ing process is to select an alternative that seems to be most rational for solving the problem. The alternative thus selected must be communicated to those who are li!ely to be affected by it. %cceptance of the decision by group members is always desirable and useful for its effective implementation.

4.

#onverting 'ecision into %ction0 %fter the selection of the best decision the next step is to convert the selected decision into an effective action. 9ithout such action the decision will remain merely a declaration of good intentions. Here the manager has to convert (his decision into (their decision( through his leadership. For this the subordinates should be ta!en in confidence and they should be convinced about the correctness of the decision. Thereafter the manager has to ta!e follow-up steps for the execution of decision ta!en.

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5nsuring Feedbac!0 Feedbac! is the last step in the decision-ma!ing process. Here the manager has to ma!e built-in arrangements to ensure feedbac! for continuously testing actual developments against the expectations. $t is li!e chec!ing the effectiveness of follow-up measures. Feedbac! is possible in the form of organised information reports and personal observations. Feed bac! is necessary to decide whether the decision already ta!en should be continued or be modified in the light of changed conditions.

5very step in the decision-ma!ing process is important and needs proper consideration by managers. This facilitates accurate decision-ma!ing. 5ven &uantitative techni&ues such as #+, +57T*O7 linear programming etc. are useful for accurate decision-ma!ing. 'ecision-ma!ing is important as it facilitates entire management process. ,anagement activities are just not possible without decision-ma!ing as it is an integral aspect of management process itself. However the &uality of decision-ma!ing should be always superior as faulty*irrational decisions are always dangerous.

Introduction:
Decision making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision making is a habit and a process as well. Effective and successful decisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making process is the most critical process in any organization. In the decision making process, we choose one course of action from a few possible alternatives. In the process of decision making, we may use many tools, techniques and perceptions. In addition, we may make our own private decisions or may prefer a collective decision. Usually, decision making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party. Let's have a look at the decision making process in detail.

Steps of Decision Making Process:

Following are the important steps of the decision making process. Each step may be supported by different tools and techniques.

Step 1: Identification of the purpose of the decision:

In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision.

What exactly is the problem? Why the problem should be solved? Who are the affected parties of the problem? Does the problem have a deadline or a specific time-line?

Step 2: Information gathering:

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem. In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be effectively used.

Step 3: Principles for judging the alternatives:

In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken into consideration. As an example, profit is one of the main concerns in every decision making process. Companies usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand.

Step 4: Brainstorm and analyse the different choices:

For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes. For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and identify the causes with highest effect. Then, you can move on generating all possible solutions (alternatives) for the problem in hand.

Step 5: Evaluation of alternatives:

Use your judgement principles and decision-making criteria to evaluate each alternative. In this step, experience and effectiveness of the judgement principles come into play. You need to compare each alternative for their positives and negatives.

Step 6: Select the best alternative:

Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision since you have already followed a methodology to derive and select the best alternative.

Step 7: Execute the decision:

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates.

Step 8: Evaluate the results:

Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in future decision making. This is one of the best practices that will improve your decision-making skills.

Conclusion
When it comes to making decisions, one should always weigh the positive and negative business consequences and should favour the positive outcomes. This avoids the possible losses to the organization and keeps the company running with a sustained growth. Sometimes, avoiding decision making seems easier; especially, when you get into a lot of confrontation after making the tough decision. But, making the decisions and accepting its consequences is the only way to stay in control of your corporate life and time.