Objectives

Objective is the destination point or the end point of the activities made
by the staff of an organization. It gives forms to the work done at
different levels.
Objective defined as the important ends toward which organizational
and individual activities are directed.

• Verifiable objectives – An objective is verifiable when at the end

of the period one can determine whether or not it has been
achieved.
• Organization may have different objectives at a single point of
time.
• Each objective must be integrated and co-ordinated for the
fulfillment of overall objective of the organization.

Classification of objectives
i. External objectives
ii. Internal objectives

External objective

• To serve the needs of a customer through its

product/service.

• Should offer active support to govt. education.

 • Minimizing the problem of pollution for ensuring good
quality of life.

• Organization must fulfill its responsibilities to the

community, society and government besides its own
customer.

Internal objective

• Primary internal objective of any organization is

maximization of profit.

• Fulfillment of employee’s needs and desires is

another objective.

• Objectives to be measurable.

Quantitative and Qualitative objectives

Quantitative objectives are not easily measurable :-

i. Survival (competition, to be as a live unit)
ii. Growth (some grow fast/slow)
iii. Service (good quality goods at fair price)
iv. Social objectives (welfare)
 v. Personal objective(personal needs & desires)

Qualitative objectives are measurable:-

i. Projects
ii. Market share
iii. Turnover
iv. Productivity

Management By Objective (MBO)

• MBO for minimizing controls and maximizing

motivation through driven superior – sub
ordinate relationship.

• Key to MBO is the internal relationships

between a superior and sub-ordinate in setting
realistic objectives for the sub ordinates.
Four steps of MBO
i. Joint goal setting
ii. Pragmatic (practical/realistic)planning
iii. Self control by all people
iv. Periodic appraisal
 • MBO directly influences planning as well as
organizing, directly and controlling, it constitutes a
basis for improving the over all.

• MBO is both a philosophy and technique of

management.

• Its main emphasis is on results but not on methods of

doing it.

• As a philosophy, MBO is based on the assumption

that the conversion of board organizational goals into
more specific and personalized objectives which
result in higher level of commitment and improved
level of performance.
• MBO defines as “a process where by the superior and
sub ordinate managers of an organization jointly
identify its common goals, define each individuals
major areas of responsibility in terms of results
expected of him and use these measures as guides
for operating the unit and assessing the contribution
of each of its members”.
Characteristics of MBO

1. Goal orientation
2. Participation
3. Key result area (an area in which performance is
essential for the success of the enterprise)
4. System approach (personal goals with organization
objectives)
5. Optimum utilization (use of men, materials,
machines, money and methods)
6. Dynamic concept
7. Practical
8. Multiplicity of accountability
9. Total approach

Management By Exception (MBE)

• Organization must be efficient enough to feed

relevant information to the superiors at appropriate
time to act.

• Managers not disturbed for routine matters how they

are progressing, control communication are often
based on the MBE principles.

• This principle suggests that the controlling supervisor

should be informed about an operation’s progress.

• Will enable executives to concentrate on problem

solving and future plans.