2. What is Objectives??
0 A path-way that leads towards goals….

3. Decision Objectives
o Managers cannot possibly judge how far the
preferred option will go towards achieving their
objective.
o Without the indication of extent to which each
option fulfills the objectives of decision

4. Types of objectives
0 Primary objective
0 Strategic objective
0 Operational objective

5. Primary Objective
0 Reflects the fundamental reason for the organization's
being.
0 Objectives are likely to include survival of company,
independence from outside control, profit and desire
for growth.

6. Strategic Objective
0 Guide the organizations long term direction towards
the achievement of primary objective.
0 It could include developing innovative products, fund
projects only from internally generated profits and so
on….

7. Operational Objective
0 Interpret an organization’s strategic objectives into
manageable terms for shorter term decision making.
0 It includes such things as controlling budgets
tightly, keeping unit cost low, giving good delivery…..

8. Whose Objectives??
0 Who is chosen to articulate those objectives??
0 Is it organization’s manager who best reflects its goal
and if so manager?
0 Is it company’s board of directors?

9. The Characteristics of
Decision Objectives
0 Strategic and operational decision
0 Multiple objectives
0 Implicit & explicit objectives
0 Efficiency & effectiveness
0 Changing objectives
0 Intrinsic & extrinsic objectives

10. Strategic & Operational
Objectives
Primary
Objectives
Appropriate
Strategic Objectives
Appropriate &
consistent?
Operational
Objectives

11. The Means- Ends Chain
0 Objectives exists at different levels in an
organization, then, what is an objective to one
decision maker will be a means of achieving a higher
objective to a higher decision maker.

12. Multiple Objectives
0 An organization’s objectives are not always
immediately apparent or clear to an outsider
0 Organization goals are ambiguous and contradictory
because organization have more than one objective

13. Implicit and Explicit
Objectives
0 Objectives may form an ‘invisible hand’ which shapes
decision towards ultimate goals in quiet and nonobvious way
0 Objectives can be clearly stated ‘signposts’ which are
seen by all decision makers pointing the way in an
unambiguous manner towards the company goals

14. Important points for explicit
objectives
0 Do objectives state what the organization does not
want to do?
0 Are the objectives a useful guide to action?
0 Are the objectives reasonably comprehensive?

15. Efficiency and Effectiveness
Input
resources
(People
Materials)
The
organizational
unit
Efficiency
Output per
unit
Out put
(Goods
or
services)

16. Efficiency and Effectiveness
Input
Organizational
Unit
Output
Effectiveness
characteristics
of output and
efficiency of its
creation
Efficiency

17. Changing Objectives
0 Change occurring in the organization’s environment
0 Change occurring in the organization itself

18. Setting Decision Objectives
0 Objective should be clear
0 Objectives should be consistent
0 Objectives should be agreed
0 Formulation of objectives
State clearly and ambiguously
Fully understood by all decision makers

19. Criteria For Sensible Objective
0 Necessity
0 Practicability
0 Relevance
0 Measurability