LESSON OBJECTIVES

To explore the meaning of the terms objectives, mission, vision

To explain the importance of setting SMART objectives
BUSINESS OBJECTIVES

Business objectives are the stated, measurable targets of how to achieve business aims.
For instance, we want to achieve sales of €10 million in European markets in 2004.
Objectives give the business a clearly defined target. Plans can then be made to
achieve these targets. This can motivate the employees. It also enables the business to
measure the progress towards to its stated aims.
WHY SHOULD BUSINESSES SET SMART
OBJECTIVES?
AN OBJECTIVES MUST BE SMART?
S.M.A.R.T. STANDS FOR?
PROGRESS CHECK - A

 List SMART objectives for a car

manufacturing business for their  Explain how the workers in a
various functions: business might react if the firm
 Human resource department had no clear objectives
 Finance department
WHAT DO THESE TERMS MEAN?

Vision
Mission
Objective
 Starting point
Long term goals for entire set of
objectives

Central purpose Allow assessments

of the business Corporate to be made to assess
is mentioned in Aims/Vision set and achieved
C.A goals

Designed to
Formulate a
provide
framework
guidance
MISSION STATEMENT

 A Statement
 Of core business aims
 In a way to motivate employees
 Stimulate interest by outside groups
 Communicating Mission Statements

Important to
communicate to Appear in corporate plans
employees

Mission
Feature in Internal company
published Statements newsletters and
accounts magazines
 +ve

Inform groups Not detailed objectives but

about central aim inform groups “what the
of the business business is about”

Mission
Guide to individual
Motivate Statements employee behavior as it
employees
communicates values

Advertising slogans or
Provide a vision
posters of based on
and overall
themes of mission
sense of purpose
statements
 -VE

Too vague & Virtually impossible to

general analyze or disagree with

To make Mission Common to have two

stakeholders different business having
feel good about Statements similar mission
the organization statements

Insufficient for operational

guidance
PROGRESS CHECK - B

1. ‘We intend to make our products the best known

computers in the world’. Do you think this is an objective
or a mission statement? Explain
 MAXIMISING
PROFIT SHAREHOLDER MAXIMISIN
MAXIMIZATION VALUE G SHORT
TERM
SALES
REVENUE

Common
PROFIT CSR (CORPORATE
SATISFICING Corporate SOCIAL
RESPONSIBILITIES)
Objectives

INCREASING SURVIVAL
GROWTH MARKET
SHARE
IS THERE ANY RELATION
BETWEEN OBJECTIVES AND
DECISION-MAKING?
 DECISION MAKING FRAMEWORK
Assess &
clarify Gather data
problems to analyse
problem

Control & review

against objectives Consider ideas
and options

Plan &
implement Use appropriate tools
decision-action to decide between
options
Corporate culture Divisional, departmental &
Factors individual objectives
determining
corporate
objectives

The size & legal

The number of years the
form of business
business has been operating

Public sector or private

sector businesses
MANAGEMENT BY OBJECTIVES (MBO) A method of
coordinating and
motivating all staff in
an organization by
dividing its overall aim
into specific-targets for
each department,
manager and employee.
 COMMUNICATING OBJECTIVES

Employees & Managers Employees see the overall plan Creates shared responsibility

Regular monitoring
ETHICAL DECISIONS

In the context of decision making, ethics are standards of

right and wrong.
 A document
detailing a
company's rules
and guidelines on
staff behavior
that must be
followed by all
employees
 WHAT DO YOU THINK OF THE FOLLOWING STATEMENT- RIGHT
OR WRONG?

Should a toy company advertise its products to young children so that they
“pester” their parents into buying them?
LET’S EVALUATE THE STATEMENT..

Should a toy company advertise its products to young

children so that they “pester” their parents into buying
them?