1 / 8

UNIT 9: FORMULATING OBJECTIVES

UNIT 9: FORMULATING OBJECTIVES. A. What are they?. Statements of specific outcomes that are to be achieved What the business wants to achieve Long term objectives and short term objectives Financial and non-financial objectives Quantitative and non-quantitative objectives

violah
Download Presentation

UNIT 9: FORMULATING OBJECTIVES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. UNIT 9:FORMULATING OBJECTIVES

  2. A. What are they? • Statements of specific outcomes that are to be achieved • What the business wants to achieve • Long term objectives and short term objectives • Financial and non-financial objectives • Quantitative and non-quantitative objectives • Primary and secondary objectives

  3. Hierarchy of Objectives • Corporate objectives • Business objectives • Functional objectives • Personal objectives

  4. Factors Influencing Objectives • Age of the business • Size and legal status • Ownership (e.g. privately owned; stock exchange quoted) • Views of owners and managers • Market conditions • Legislation

  5. Factors Influencing Objectives (Contd.) • State of the economy • Competition • Risk and attitude to risk • Corporate culture • Political factors • Social attitudes

  6. B. Balanced Scorecard Approach • Formulate objectives in four key areas: • Financials-To succeed financially, how should we appear to our shareholders? • Customers- To achieve our vision, how should we appear to customers? • Internal Business Processes – In which business processes must we excel to excite customers and shareholders? • Learning and Growth- How will we sustain our ability to change and improve?

  7. C. Objectives need to be • Specific • Measurable • Achievable • Realistic (acceptable, motivating) • Time-bound

  8. D. Process • Objectives setting needs to be both a top-down and a bottom-up process. • Guidance to lower level managers and lower level units. • Support for organization wide objectives cascading process • Objectives are required all at levels of an organization

More Related