We are going to take further aspects of management. We will
be discussing objectives of management. It would be recalled that in our first
unit when we were discussing the nature and purpose of management, we did say
that a manager must accomplish result. That is being effective. But in
accomplishing result, the manager should be prudent in the use of resources.
This is efficiency. The output is greater than the input. But to achieve
demands that the manager must set pre- determined objectives, bring together
the necessary resources and set out together with his team toward the
attainment of the organizational objectives.
We shall discuss the various forms of business objectives
which also constitute management objectives. Also to be discussed are management skills necessary for the attainment of organizational objectives. The skills
are emphasized because in most cases some organizations set objectives, but the
realization of such objectives is not emphasized. This is unsound management which must be rejected and discouraged.
Definition and characteristics of Business Objectives
An objective generally is an end in view. It represents the
point an organization wants to attain and it is futuristic, that is, it
concerns the future. Since an objective is an end in view, it represents future
expectation of management. That is why enterprise activities must be directed
towards the attainment of the set objectives.
Characteristics of Business Objectives
Objective has important characteristics which must be taken
into consideration. These characteristics stamp the mark of seriousness in
business objective or any objective in non-business organization set by a
serious manager. These features or characteristics of a good objective are:
(a) It must be specific: An objective should be targeted at
specific result. This is necessary so as to avoid too much generalization which
makes it difficult for an organization to know whether it is on the right track
or not. A good business objective should be targeted and focused at a specific
spot. This will enable management to concentrate at that point for the
fulfillment of the objective.
(b) Action: A good objective commands not only the focus of
management but also management action. Management by its very nature as a
process is action oriented which is ongoing. But the action must be in the
desired direction which has been provided by the specificity of the business
objective. Action demands that the required resources in terms of human,
material, time, information and other necessary resources must be put in place
toward the attainment of the objective. That is why, the goodness of an
objective depends on how resources are channeled towards its accomplish,
otherwise it becomes merely a formality.
(c) Realistic: An objective should not be set for setting
sake or simply another organization has its own objective. A realistic
assessment needs to be made concerning the organizations strengths and
weaknesses. This is important so that right from the early stage the
organization will be able to determine whether it has the required resources
with which to accomplish the objective. If the resources are not available in
sufficient quality and quantity, then a more realistic objective compared to
the resources available should be set.
(d) Measurable: An objective should be quantified, that is
some figures should be attached. This is necessary for verification which means
that at a required time, performance must be compared with the standard. The
essence is to find out if efforts being made are in the right direction. If
this is not the case, the necessary corrective measure should be put in place
to rectify the situation.
(e) Time: The objective should be time bound. This indicates
that within specific period, the objective must be accomplished. Another
element concerning this feature of an objective is that it has to be formulated
at the relevant period. In other words, the timeliness of the objective is
important otherwise, events would overtake it.
All these features and attributes of an objective go
together; they cannot be separated from one another. This is why they should
all be considered in the process of objective formulation, objective
implementation and objective evaluation.
Types of Objectives
The types of objectives are indicated in the time in which
the objectives are to be accomplished. There are therefore short term
objective, medium term objective and long term.
(a) Short term
Objective
For the Nigerian environment which is erratic and turbulent,
short term objective is usually less than on year. Compared to advanced
economies, this is too short. But in those advanced economies, they are a
stable and one can plan over a long range of time. In short term objectives,
the nature of such objectives are tactical and operative. That is, they are
objectives which are often yearly for departmental functions (tactical objectives)
and they command activities which are specific, determined and for more
immediate implementation (Operating objective/activities).
(b) Middle term
Objective
Again, in respect of the Nigerian environment, the middle
term objective is usually lesser than five years.
(c) Long term
Objective
This is usually more than five years. The middle term and
long term objectives are usually formulated through corporate objectives and
mission statements. The corporate objectives in commercial organizations are
often expressed in profit figures. In respect of the mission statements, they
indicate in general terms the organization self-identify, that is, the way it
sees itself and wants to be perceived.
Multiplicity and Hierarchy of Objectives
(a) Multiplicity of
Objectives
An organization may have more than one objective and
resources are committed toward their attainment. When this is the case we say
that such an organization has a multiplicity of objectives.
(b) Hierarchy of
Objectives
There may be corporate objectives reflecting the medium and
long range plans of the organizations as well as the mission statements. There
are also departmental objectives.
When there exist the corporate objectives for the entire
organization at the top, and below are arranged the departmental and sectional
objectives. We say that such organization has hierarchy of objectives.
Examples of Objectives
There are different types of objectives depending on the
organization. Below are examples of business objectives:
1. Nature of Business
A business organization must have an objective showing its nature
that is its mission statement. To be able to set this type of objective, the
organization must be able to identify those that constitute its customers. This
is achieved by identifying their needs and how these needs can be satisfied by
the provision of some goods and/or services. management should not only think
of the immediate needs of the customers but also their future needs as well. The
objectives must be broad so that future opportunities are not lost through too
specific objectives.
2. Survival Objective
Every organization wishes to survive. To be able to survive
demands the provision of goods and/or services which the customers need. That
the output of the organization should be capable of meeting the needs of the
customers. If this is not the case, then the sustainability or survival of the
business over a long period is doubtful.
3. The Growth Objective
A business organization grows or dies especially in a
competitive environment. Growth is a quantity shift from one point positively
to another point. Adequate growth provides more revenue to the organization and
promotion opportunities for the employees. It increases the strength of the
organization in the face of competition.
4. Profit Objective
The very survival of an organization dictates that a certain
minimum profit has to be made. Profit is important also because it measures the
performance of management in a business organization. It makes it possible for
the shareholders to have a return on their investment. It is again through
profit that other business organization can be attained.
5. Increasing Productivity Objective
Linked to profit objective is the productivity objective.
Increasing productivity lowers unit cost of the product. Through this, the organization can be able to compete and penetrate the market.
6. Social Obligation Objectives
These objectives are many. They range from supplying of
adequate product/services at reasonable prices to the customers, ensuring that
the share holders get good dividends, giving employment to the members of the
public, paying taxes to the government among others. We shall be taking the
social responsibilities of the manager in due course in one of the subsequent
units.
Management Skills
For a manager to perform well and be seen to be performing
creditably, he needs some skills which must be brought to bear in his
functions. These skills are:
1. Technical Skills
Technical skills form the knowledge of and proficiency in
activities involving methods, procedures and processes. They involve working
with tools and techniques. As an example, the mechanics work with tools and
their supervisors should teach them the ability of how to use the tools. Also,
accountants require specific techniques based on principles on how to do
accounting work.
2. Human Skills
These are the ability to work with people. They involve
cooperating with one another as a team by creating an environment when people
feel secured and free to express their opinions.
3. Conceptual Skill
This is the ability to see the big picture of the end in view
(objective) of where you are going. It also demands that you should be able to
see those activities that are necessary to realize the big picture. The picture
must be clear, capable of excitement. Remember, the scripture says people
perish for lack of vision. We should be able to see the picture of what we
want. It is a skill which must be learnt.
4. Design Skill
This is the ability to solve problems in ways that will
benefit the organization. This is done by working out practical solutions to
identified problems.
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