Saturday, March 10, 2012

GOAL DISPLACEMENT

  • Unintentional approach
  • Divert organizational resources
  • Unable to achieve the present goal
        Goal displacement may be stated as a situation in which new goals has been developed by completely disregarding the strategy, operational and tactical goal for survivable of organization. Goal displacement is the act of unintentional goal in the original goal into a new goal. Such displacement diverts organizational resources away from the organizational goal. When served goal become the primary goal in an organization goal displacement takes place.
For example: Many cinema hall in our country have been converted into party palace and go down due to lack of audience as movies are now a days  easily available to cable-TV and in compact disk.

Reason for Goal Displacement :

1. Goal conflict : When organizational goal conflict with individual goals and personal goal displacement takes place. It basically occurs when there is absence of consensus in an organization.

2. Means-End Inversion : 
 
End – Goal
Means – process, way
         End is what is to be achieved and means is how it is to be achieved. When an management developed strict rule regulation, policies and procedures to perform organizational functions then employee proper attention to follow these rules and discipline not to the accomplishment of task due to which goal displacement takes place.

3. Abstract Goal : If original goal are abstract, uncertain and unclear displacement takes place. If the goals are not made clear then members of the organization can not achieved it with limited resources. So, goal must be specific and achievable that can be translated into operational goal, otherwise it is displaced.

4. Goal Substitution : When long term goal are substituted by short term goal displacement takes place. For example: Increasing market share by 10% is the long term goal can be substituted by increases in productivity or sell by 20% which is short term goal.

5. Employee Attitudes : Unproductive attitudes of employee to original goals lead to goal displacement if employee have a positive goals they can be achieved in an effective way. But if employee and there union have a negative attitudes towards it; they may not perform effectively and give priority to personal goal.
 

GOAL SUCCESSION


(Achievement of goal and modification in goal are called goal succession)

                           
                    Goal succession is the act of intentional review and modification of existing goal by the top level management.

                Organizational goal when once formulated can also be changed due to the changes in the external and internal environment by organization fulfill the goals for which, it was created it face the crises of existence. In such peace it many change the goal of its business and about some other related goal. So the process of developing new goals for the achievement of corporate goals and development is called goal succession. It means to developed new goal for the achievement the old goal for the achievement the old one and when the old goal is achieved new goal is made.

                 When an organization I faced with the problem like acute competition, declining sells, shortage of funds, resources etc. And other environmental challenging its need to find new goal for survivable and modify its excising goal in order to enhance the existing goal.

For example: (If organization had stated labor welfare as its goal by extending housing, medical and educational facilities to its employee with the passage of time, it realized that this goal has been achieved. And therefore a new goal has to be constituted as workers participation in management decision making this is goal succession.)

 Reason for Goal Succession:


1.  Original goal achieved: When original goal is achieved in a living period of time it is essential for an organization to set new goal. Setting new goal is necessary for perpetual existence of an organization. 

2. Environmental adaptation: Environment is the dynamic and regularly influences organizational functioning. So, every organization needs to modify its original goal in accordance with the environmental changes. 

3. Unachievable goals: When original goal cannot be achieved even by the hard work of the management it needs to received and modify the existent goal. Modification in goal also be needed if actual performance, deviates significantly from targets.

APPROACHES TO GOAL FORMATION

           1. Top-Down Approach :                       
                       In this approach top level managers determined goals for an organization; they set strategy, tactical and operational goals of the organization. It is assumed that the top level management knows what is best for the organization as they can only see the big picture of the goal of organization. The term executive may take suggestion and technical guidance from expert and professional but they take final decision themselves. An after formulating goals; they circulate it to the subordinates for implementation.

2. Bottom-up Approach :
                          In this approach middle and lower level managers are given authority to set their own departmental and unit goal with in the given frame work. It is assumed that, these managers have necessary information, awareness, and technique to set goals. As authority is given to middle and lower level managers are high level managers to formulate goals they are highly motivated in their work.

3. Management by Objectives (MBO) Approach :
                         Management by objectives is the participated approach to goal formation. In this approach superior and subordinates set together and jointly identify the common goals. The responsibility for each individual in terms of expected results are defined. Actions plans are developed and performances are periodically evaluated. This approach has gained popularity due to growing competition, environmental presser, increasing attention on long range planning and so on. 
                     a. Collaborative Goal setting : Both superior and subordinate collaboratively set the organizational goal. The expectation is shared with bettor interaction among employed and long term objectives are set down for an organization. The corporate goals, specific goal and short term goals are developed for every department or units and the slandered for every individual employed as well as department is made. 
               
                     b. Action Plan Development : Action plans are developed to achieve the define objectives. It specified the activities that have to be under taken in each task and department like production, finance, marketing etc 
             
                        c. Performance Review : Performance of every employed is periodically review and matched with standard weather the employee goal reached their destiny or not. 
           
                      d. Performance Appraisal : At the end of year the final performance is evaluated against the target. Performance is compared with that of standard and feed back is provided to the best performance and penalties are made to the poor than at work.

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. 

ORGANIZATION & MANAGEMENT

Organization
  • Collection of people
  • Common Goal ( profit, survival, grouth, services)
  • Coordinated Effort
  • Division of Labour/Specialization
  • Resources
  • Structure
  • Technology
  • Dynamic
Definition of Organization
       Organization is an association of two or more individual working together in a co-ordinate manner to achieve common rule. It is a collection of people working together in a proper division of labour to achieve a common purpose. Every organization has it's own resources, structure and technology. It operates in a dynamic environment.

Expert Definition: 
  • According to Rubbins and Decenzo, organization is a systematic arrangement of people brought together to accomplish some specific purpose.
  • According to Ricky Griffin,  organization is a group of people working together in structure and coordinated fation to achieve a set of rules.
Features of an Organization
  1. Goal Oriented
  2. Collection of People
  3. Structure
  4. Technology
  5. Continuity 
  6. Environment
 1. Goals Oriented :
            Goals provide reason for the excient of organization goals are the desire ends for which all the activites of an organization are directed. They provided direction and guide actions of the organization. Goals can be single or multiple of the organization. Goals can be single or multiple.
For Example: Profit, Survival, Welfare, Service etc..

2. Collection of People :
            Organization is a human association which consists of two or more people different activities are perform by there people. Social interaction that produces a synergy effort to achive goal.

3. Structures : 
            - Differentiation
            - Integration 
            
            Several activities are perform by an organization to achieve goal. Structure refers to the division of these activities in two different units and positions and also defined their relationship.

        I. Differentiation : Differentiation is concern with the division of activities into different units and position. The work is subdivided into task to achieve specialization. The responsibility is assigned to every individual on the basis of their skills, ability and experienced. A hierarchy of authority is established.
         
        II. Integration : Integration refers to the coordination between different position and departments to find out the uniformity of action and harmonization of effort.

4. Technology :
             - simplifies activities 
             - increases efficiency
             - reduced cost

             Technology refers to the knowledge, skill and procedure required to perform certain activities. Every organization is certain technology to convert row materials into finished product. The use of appropriate technology into a job helps to developed working efficiency and also minimizes the cost of output.

5. Continuity :
          Continuity refers to a long term existence of an organization and organization when established continues its existence and operation even why changing its structure, membership, objectives according to the requirement and with the changing environment. 

6. Environment :
           Organization exist and operate in dynamic environment. It has internal and external environment. Internal environment is the working environment of an organization. The forces in the external environment are political economic sociocultural and technology. The change in these forces influence the organization activities to achieve its goals.