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.