MANAGEMENT CONTROL SYSTEM

TOPIC: GOAL AND OBJECTIVES

Presented to: Prof. M. A. Ganachari

GROUP MEMBERS
MAITREYEE CHALKE ROSHNI JOSHI HEMANT KOMTE SAGAR ASHAMSHETTY ROHIT PADALKAR

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GOALS

Long term goals for the organization and/or department Goals that keep the organization running smoothly Short term job specific goals

Who sets and uses which goals?

OBJECTIVES

Objective is: Desired outcomes for individuals, groups and organizations The anticipated end result of a programmed of activity Broad goals or strategies which the organization seeks to adopt in order to achieve its primary aims The specific intended outcome of strategy

HIERARCHY OF OBJECTIVES

Mission Corporate & Strategic objectives Functional objectives e.g. marketing Team objectives

Individual objectives Management by objectives

OBJECTIVES

Objectives can be used to:

Implement the mission Provide a clear focus for decision making Provide a target Motivate employees , Etc.

Objectives are central to strategy

Objectives have a central role in management decision making, strategy and planning Decisions are taken with the objective in mind The starting point for strategy is objectives

CORPORATE OBJECTIVES
Sales revenue Profit Return on investment Growth Market share Cash flow Shareholder value Corporate image & reputation

SURVIVAL THE PRIME OBJECTIVE

For a new start up business the only realistic aspiration in the first year is survival The aim is to survive the difficult early months of negative cash in order to build a base of the future Even for established firms survival is of key importance since without survival: Managers and employees lose their jobs Shareholders lose their investment Suppliers will not be paid Customers will look elsewhere for a supplier

Examples of objectives

FUNCTIONAL OBJECTIVES

Functional objectives
Minimize costs Raise profile of business Improving Staff Loyalty and Motivation Development of Products Increase Market Share

Functional Objectives and Business Strategies Functional Objectives and Corporate Objectives

SMART OBJECTIVES
Specific: The objective should state exactly what is to be achieved. Measurable: An objective should be capable of measurement so that it is possible to determine whether (or how far) it has been achieved Achievable: The objective should be realistic given the circumstances in which it is set and the resources available to the business. Relevant: Objectives should be relevant to the people responsible for achieving them Time Bound: Objectives should be set with a timeframe in mind. These deadlines also need to be realistic

Thank You