Objectives are what the organization wants to have or become at some point in the future. (Usually 3-5 Years)
- Because they are strategic in nature, they focus more on position to be attained than on specific accomplishments.
- They define success at a point in the future, allowing you to work backward and identify interim steps along the way.
- They take the company strategy one more step toward action level.
- They are visionary and broad in scope.
- Format: “to have (or become) (the result) by (year).
“Objectives are the end results of planned activity. They state what is to be accomplished by when and should be quantified if possible.” (Wheelen and Hunger)
“Objectives are statements of specific outcomes that are to be achieved.”(Johnson & Scholes)
Examples of performance objectives:
(Profitability, Survival, Growth, Efficiency, Leadership, Social Responsibility, Reputation, Employee relation and development etc.)
Importance of objectives:
- Decision making.(organization’s relationship with environment)
- Helps organization pursue its vision and mission.
- Provide the basis for strategic decision.
- Increase organizational efficiency.
- Performance Appraisals.