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The first step in planning itself is to establish objectives for the entire enterprise and then for each subordinate unit. Objectives specifying the results expected indicate the end points of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the network of strategies, policies, procedures, rules, budgets and programs.
Enterprise objectives should give direction to the nature of all major plans which, by reflecting these objectives, define the objectives of major departments. Major department objectives, in turn, control the objectives of subordinate departments, and so on down the line. The objectives of lesser departments will be better framed, however, if subdivision managers understand the overall enterprise objectives and the implied derivative goals and if they are given an opportunity to contribute their ideas to them and to the setting of their own goals.
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An objective can be defined as the end point goal toward which management directs its efforts and resources. (Sisk, 1993, p. 112). The statement of an objective is in effect a statement of purpose, and when applied to a business organization becomes the statement of that firm’s reason for existing. |
However, there are four outstanding benefits that result from the statement of objectives, these are:
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a) Objectives provide direction b) Objectives serve as motivators c) Objectives contribute to the management process d) Objectives are the basis for management philosophy e) Objectives serve as a guide for organizational consistency |
Meanwhile, the objectives can be separated into four categories: organizational, individual, internal, and external objectives.
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