Goals - Objectives and Targets
The process of management begins with setting of goals,
objectives and targets. The goals are long term aims to be achieved by the
organization; objective are relatively short term milestones to be accomplished,
while the targets generally refer to physical achievements in the organization's
business. The goals, objectives and targets are so set that they are consistent
with each other and help to achieve each other. These are to be achieved within
a stipulated time and failing to achieve the same, means less of business profit
and image. The difference between these entities can be best understood by
examples in the three types of organizations given in Table below.
Table:
|
|
Business Organization
|
Hospital
|
State Transport Organization
|
|
GOAL
|
Be a leader in the
household consumer goods industry, with modern amenities
|
Be a hospital providing
total service to the patients.
|
Connect all villages of
population 5000 and above by S T service
|
|
OBJECTIVES
|
Provide complete product
range in the area of cleaning, preserving and entertainment.
|
Establish 300 bed
hospital in three years.
|
Management state
transport at the rate of $ 5 per mile traveled.
|
|
TARGETS
|
20 per cent growth per
annum in turnover.
|
Achieve $ 800 bed per
day earnings.
|
Achieve 90 percent
average seat occupancy everyday.
|
In an organization, as time progresses, business goals,
departmental goals, functional goals and personal goals emerge, which create
conflicting environment in the organization. The goals, objectives and targets
helps in accomplishing objectives and accomplishment of objectives leads to the
attainment of goals. Careful
determination of these entities is, therefore, essential for a successful
management process. The goals, objective and targets become reference points for
strategic planning, resource planning, and operations planning.
It further helps the management to identify key areas of
business and key areas of management attention. Its advantage is that it
stimulates the development of people and provides motivation. According to Peter
Drucker, “goals and objectives are necessary in every area where performance and
results directly and vitally affect the survival, growth and prosperity of
business”.
