Chapter 4

Goals Strategies & Control

Prof. GURU PRASAD
FACULTY MEMBER
INC GUNTUR
pgp4149@gmail.com
 GOALS AND OBJECTIVES
• GOALS: Goals are defined as broad
statements of what the organization aims
to achieve in the long run, or on a
permanent basis.
• OBJECTIVE : Objectives are more
specific statements and indicate what the
organization wants to achieve within a
specified time period.
STRATEGIES AS CONSTRAINTS
ON CONTROL SYSTEM
• Stanford research institute “a way in which
a firm reacts to its environment, deploys
its principle resources and marshals its
main efforts in pursuit of its purpose”.
• Criteria to evaluate strategy
• Strategies and policies as constraints.
STRATEGIES AS CONSTRAINTS
ON CONTROL SYSTEM
1. Criteria to evaluate strategy.
2. Strategies & policies as Constraints
 Criteria to evaluate strategy
Strategy can be evaluated by posing certain
key questions
• Is the strategy internally consistent?
• Is strategy consistent with the environment?
• Is the strategy appropriate in view of the
available resources?
• Does the strategy involve an acceptable
degree of risk?
• Does the strategy have an appropriate time
horizon?
• Is the strategy workable?
Strategies & policies as Constraints
• Managers have to elaborate the strategies
into policies to achieve their goals &
objectives.
• Policies serves as a constraints on the
sub-units
 MANAGERIAL BEHAVIOR AND
CONTROL PROCESS
• A unit headed by manager is referred to
as a responsibility center.
• Control systems aims at evaluating the
performance of responsibility centers.
• Control process is a primarily behavior in
nature.
• Control process links between the
organizational behavior & control process.
 Contd……
It includes the following
2. Perception.
3. Attitudes & beliefs
4. Motivation
5. Goal congruence
6. Inter unit conflict & cooperation
7. Managerial styles
8. Resistance to change
9. Force field analysis
10. Entrapment
11. Compromising
12. Socio-cultural influences.
 Management by objectives &
budgeting as an aid to control process
• This is the process of setting up
goals/objectives by superiors &
subordinates & clarifying objectives to
make up key features of management by
objectives.
• Budgeting as well as MBO, can help
improve the effectiveness of the
organization.
 Responsibility center

• It is a unit or a function of an organization

headed by a manager who is directly
responsible for its performance.
• It can be assigned very narrowly or
broadly in terms of activities that senior
manager decides to assign to a particular
manager.
 Contd……
Responsibility centers can be future
classified into the following:
2. Revenue centers
3. Expense centers
4. Profit centers
5. Investment centers.
Any ?
Thank U