Wednesday, March 7, 2012

ORGANIZATIONAL GOALS

        Organizational goals are the desire end to be achieved. They are the objectives towards which organization directed their resources and effort. It is the direction of an organization and also serves as standard for measuring performance. They determined action to be taken at present to obtained result in the future. These types of goal that an organization has depends upon the nature and scope of its business. Managers at different level and involved in the formation of goals, mission, purpose, target, objects are organizational goals. 

Features of an Organizational Goals   

       1. Specific : 
            An organizational goal must be clear defined. It should not be two vague and ambiguous. So that, employees could not understand them. For Example : increases in production, increases in market share, is an ambiguous goal but 10% increase in production and 4% increase in market share are specific goal.

       2. Measurable :
              The goals of an organization should be measurable in terms of quantities, cost, time and quality. It is the basis of performance evaluation and supervision of progress of work done. If the goals are measurable, it helps to verify weather or not the goals have achieve.

      3. Acceptable :
         The goal should be acceptable and agreed upon by all members of the organization who are responsible for achieving them. Therefore goal should be set through mutual agreement of all the members.

      4. Realistic :
          The goals may be challenging to an employed but should must be achievable by hard work of member. It should not be to imaginary or unrealistic. Therefore management must set a realistic and challenging goal. For Example : 100% increase in production can not to achieved, it is an unrealistic goal but 25% increases in production can be achieved an it is a real goal.

       5. Time-Bound :
               The goal should must be set for a specific period of time. The duration of goal is essential to define because the achievement of goals after the expiry of define time may be useless.  
                  
                                            Goal Formation Process

           Goal are the objectives towards with organization direct their resource and a efforts. Goals should be formulated carefully. It must be specific, measurable, achievable, realistic and time bound. Managers are different level must be involved in the goal setting process.

1. Environmental Scanning : 
           It is the process of acquiring information to monitor changes and development in the environment. It is the process of accumulating an analyzing an information from the environment be scanned to analyzed their impact on organizational performance. 

         (a) Trends in the external environment forces :
                              The impact of environmental trends on the organization are analyzed. Generally a five year time horizon is taken for trend analysis. Such environmental forces can be emerging on underway. They are (PEST)
  • Political / Legal : Government, Polices, Laws, Regulations.
  • Economic : Competition, Inflation, Economic, Polices.
  • Sociocultural : Changing cultural and social values.
  • Technological : Level of technology and pace of technological change.
          (b) Future opportunities and threats :
                                They are in the external environment. Key opportunities and threats are identified. They are uncontrollable by the organization.
          (c) Strength and weakness :
                     They are internal environment. Key strengths and weakness are analyzed. They are controllable by the organization.
          (d) SWOT analysis :
                              Strength, weakness, opportunities and threats analysis is conducted to scan and respond to data.

2. Formation of Overall Goals :
             After proper analysis, mission and strategic goals of an organization are defined these are the long term goals and directed by environmental trend and focus on profit of the organization. Top level management set these goals interpreting different information.
3. Formation of Specific Goals :
              In this stage, goals for each department, unit, branch and individuals is defined to fulfill the overall goals of the organization. It is a sort terms goal and set for a day, a weak or a month. Middle and lower level management formulates these goals. 

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