For an organization of a person, the term goal is always used to refer to the desired targets of the person or the organization either in a long or short term of the plan of the person or the organization. Irrespective of the area where the goals are applied, they would always be important for any business for various reasons. The focus of an institution or a plan in this case is controlled by the goals that the organization has. Also through the goals, it becomes easy for an organization to estimate its progress.
The identification of the progress of a business is an important factor to take note of especially when the business plan is in progress as it would show the plan a direction. The goals also help and individual to focus on the business with limited distraction hence chances of attaining business goals are more.
Procrastination is a major problem for most businesses in the world today especially those in the planning stage. The solution to the problem has been the business goals that give the business its focus. The other necessary aspect of the goals is that they provide the business with the necessary motivation that makes it better by the day.
Before the implementation of the proposed goals for an organization, it would be necessary for certain features of an effective goal to be considered as pointed out by Oettingen, Pak and Schnetter, (2013, p 736). A proper organizational goal is one that calls on a specific action to be taken. A specific goal is important in showing the organization the specific actions to take at the appropriate time. The other characteristic of the goal is that it should be measurable. It is important to note the limits to which a business goal could be extended.
The goals should be achievable also. To know if a goal is achievable, it would be necessary for the planner to consider the prior use of the goals at any level before implementing them. Besides, while planning it would be important to ensure that the goals are realistic so that the business saves time while working on activities that make sense other than wasting time on impossible missions. The other necessary factor to consider about the goals is that they should be timely. The goals should be those that would be achieved within the time scheduled by the business of earlier. Therefore, in this discussion, the characteristics of goals and all the factors to consider while setting up goals in planning for an organization would be considered.
According to Miles and Vergen from their landmark study into goal setting they mentioned that there are three conditions that must be satisfied to ensure best practice in goal setting for any institutions of the world. Based on the review of Strecher, Seijts, Kok, Latham, Glasgow, DeVellis, Meertens and Bulger (2015), the first condition according to them is the acceptance of the proposed goal or simply its acceptance for use in the specific plan. Based on the study by the two, it would be highly inconvenient for an organization to work with a goal that is not satisfied with. The satisfaction or acceptance of the goal makes it efficient as the organization would shift its focus towards attaining the goal.
Through proper examination of the goal to ascertain that it meets all the requirements of the organization in terms of goals and how to achieve them, it would be necessary that an organization puts into consideration its satisfaction with the goal before implementing it as suggested by Bagozzi and Dholakia (2012, p 24). Once an organization is satisfied with a goal, it becomes easy to achieve the goal effectively with minimal problems. Also when the goal is satisfactory, the plans and strategies to achieve it become easy for the people with the responsibility to ensure that the goal is achieved effectively for the benefit of the organization.
The other condition considered by the authors was the specificity of the various goals set by the organization. The specificity of a goal refers to the capability of the goal to outline the exact roles it will play in the plan of the organization. Like other scholars, Barlow, Wright, Sheasby, Turner and Hainsworth, (2012) stress on the assertion that for an organization to be specific on such factors, a good organizational goal as identified before should be able to identify the specific actions it will take for the organization. The course of the goal should be able to guide the organization through all the appropriate procedures from the start to its completion.
A properly laid plan should be one that is capable of acting as guidance to the overall plan of the organization and achievable within the stipulated time or earlier. When a goal is specific, it makes the activities of the organization faster and in a sequence without any distractions as mentioned by Oettingen, Pak and Schnetter, (2013, p 736). A specific goal is important for any organization for its success. While formulating the organizational goals for any plan therefore, it would be important for the organization to consider the specificity of the goals put in place such that the organization would achieve its goals in time with minimal problems as much as possible.
Identifying the difficulties of the goal is another necessary condition that the authors mentioned that should be considered while formulating the organizational goals in any planning project. The difficulty of the goal involves factors like the various challenges that might be faced in the process of achieving the specific goal according to Hollensbe and Guthrie (2014, p 869). There are several steps involved in planning and implementing the organizational goals and all other activities. It is the role of the managers of the organization to consider various barriers within the identified goals as part of the plan. If any difficulties within the desired goals are identified as a condition based on the views of the researchers, it would be easy for the organization to tackle the problems effectively with the understanding from the outline of the various difficulties.
The identification of the problems at the planning stage as proposed would be the best time as it provides the organization with enough time to consider the possible alternatives for the problem at hand. In their study, Bodenheimer and Handley (2016) insist that if the difficulties be manageable, the organization would have enough time to handle them effectively such that during the implementation process, minimal challenges would be faced. The other option the organization would have is to completely choose another goal with minimal difficulties to save time for the organization.
The term management by objective is defined as the process at an organization through which organizational objectives are presented to the management of the organization as they pass them to the employees and the rest of the organization as pointed out by Strecher et al. (2015, p. 196). Management by objective is a technique that has been used by most developed businesses of the world to improve their goal implementation and profit making generally. Maheshwari (2012), says that it is an important technique that any business should consider in planning or in any other practices it engages in so that it could be successful through being updated and competitive.
In the management by objective system, there are certain procedures that should be considered by the organization for its effectiveness. The review of the goals of the organization is a necessary step to consider as the organization develops its activities. Since the goal is an important part of the plan for any organization, it would be highly convenient for the organization to take consideration into it as a way of majoring its services and activities based on the requirements of the specific goal referred to in any case as Odiorne, (2015) describes. The consideration of the goals makes the discussion of the objectives easy and convenient for the organization.
As a personal management technique, management by objectives encourages the employees and managers to work together in setting, monitoring, and recording the organizational goals within a specific period. According to Oettingen, Pak, and Schnetter (2013), the planning and organizational goals often begin with the managers down to the employees and later translated into personal goals for the members of the organization, a technique that was first introduced by Peter Drucker (2011, p. 8).
The same study denotes that the primary concept of management by objectives is planning. In other words, the members of the organization are not only reacting to challenges and events but are proactive in ensuring a solution is reached. The management by objective concept hence requires the employees to set personal goals that are measurable that work in line with the organizational goals. According to Maheshwari (2012), an MBO is a managed and supervised activity that aims at ensuring that all individual and organizational goals are coordinated to ensure they are working towards the overall goal of the business.
In other words, an individual can focus on a personal goal as an aspect that has to fit together with all the other pieces to be effectively achieved. In a systematic study, Humble (2017) denotes that the goals are put in writing and are continually and annually monitored by the management to check on the progress as the rewards are often based upon the goals achieved.
In his review, Odiorne (2015) points out that management by objectives helps in providing a means of planning and identification of strategies that when adopted will help in the achievement of goals. As a result, the planning permits a proactive behavior as well as a discipline approach to the achievement of goals. In other words, it prepares both the management and the employees to prepare for any roadblocks and contingencies that can hinder the strategies adopted in achieving personal or organizational goals.
On the other hand, Maheshwari (2012) also denotes that since goals set are often measurable, they can be adjusted or assessed easily. The same study denotes that the organization can as well save more resources, gain efficiency, and increase the organizational morale in case the goals are properly set, achieved or managed.
Even though the aspect of management by objectives has several advantages, it as well shows shortfalls in specific areas. For instance, applying the strategy requires a concerted effort as one cannot rely upon the thoughtless mechanical approach as some tasks within the organization are often too simple to set goals upon as pointed out by Odiorne (2015, p. 7).
On the other hand, there tends to be a focus on mere goal setting instead of just developing an implementable plan. As a result, most organizations often fail to consider the possible environmental factors that may hinder the goal achievement such as lack of management support or relevant resources to support the idea. In other cases, it is noted that the organization can as well fail to monitor for the changes, an aspect that may need a modification process that may end up making the goals irrelevant.
The other factor to consider for the system would be setting the objectives for the workers. In management by objectives, there are certain organizational objectives that are meant for the management of the organization while others are specifically meant for the workers. It is the responsibility of the managers to specify those roles meant for the workers and present them to the workers in the most effective means possible. In a systematic review, Koller, Schoenecker and Hagen (2012) insist that the preparation and presentation of such objectives should be a major concern for the organization. The reason is because it defines the implementation actions for the goals set by the organization hence are important for the development of the organization. Monitoring the progress of the work after the presentation of the various objectives for attaining the goals is another part of the management by objective system that is necessary as well based on the explanation provided by Carroll and Tosi (2013, p. 8).
Monitoring has been identified as one of the most important aspects that would ensure the success of the organization through effective implementation of its goals. In monitoring the organization is assured of making the necessary corrections and adjustments within the system as a way of ensuring that all the practices of the organization are according to plan as it is planned by the organization’s management.
The evaluation of the goals of the organization could be another necessary factor to consider in implementing the management by objective system while setting goals for a plan. Evaluating the goals of the organization is an important aspect of the organization that determines the perfection of the goal prepared for implementation. Through the process of evaluation, it is possible to identify the various problems and other challenges that the organization might face because of the goals it intends to implement within its system as mentioned by Rodgers and Hunter (2015, p. 9). Evaluation should be done by the management of any organization.
The management by objective system demands that once the goals are set for the organization through the management of the organization, rewards should be given out to the sectors and individuals within the organization who shall have done their parts extremely well. The rewards are important for the future of the organization because through them it is possible for the organization to maximize its activities through motivated employees. In his study, Humble (2017) claims that the set goals would be achieved easily because once the objectives are presented to the organization’s workers, each worker and departments would target to become the best in order to receive the rewards.
The organization is therefore responsible for motivating its employees through rewards so that it can maximize its success.
The approach of any manager towards the planning of an organization would be influenced by certain contingency factors. The factors would act as control measures for all the decisions that the manager would make for the organization. The first consideration would be the goals of the organization as viewed by Mintzberg (2017, p. 1). The goals are the most important part of the plan of the organization as identified earlier. The awareness of the goals by any manager should be the base of decision making by the manager as he should be mindful more of the ways to achieve the goals more than any other factors concerning the goals.
On the other hand, Waterhouse and Tiessen (2014) point out that the characteristics of the identified goals among other factors important over the goals should be managed by the managers effectively to ensure that all the activities of the organization are based on the set goals of the organization. The definition and evaluation of the goals are all the roles of an effective manager.
The other factor that defines the decision made by the manager in planning is the government regulations within the area that the business intends to operate. The major government regulations that might influence a business include factors like taxation, registration among other factors that depend on the nation to which the business operates as claimed by the study of Child (2015, p 19). The taxation as a factor would mean that a manager decides on practices that would ensure that as the organization pays its taxes, it remains in the normal scope of operation. The fluctuations in taxation systems would be taken seriously by the manager and used to effectively control the various aspects of the business based on the manager’s opinions.
The contributions that the government might require of a business are the other factors to be considered by a manager while planning. In his review, Fisher (2016) also describes the contributions like those in the social amenities within the local area it operates among other requirements are some of the government expectations of a business that a good manager should consider.
The profitability of the project should be the priority of the manager before he considers other factors concerning the business plan. Daft, and Lengel, (2016, p 668) claim that every organization intends to make profits in the end of every business activity and procedures it engages in. the manager as the sole decision maker for the organization should ensure that as he operates the business, his focus remains the profitability of the business. In the planning process therefore, the business should consider the profitability of the business as a major factor that would govern all its activities as it aspire to achieve the success it intends to attain within the time it is in operation.
When all these considerations are put into place by the manager, it becomes possible for the organization to achieve its success within a time suitable for making it a greater organization as Tatikonda, and Montoya-Weiss, (2012, p 164) put it. It is therefore, the dedication of a manager that determines the success of the organization through the effective decision making according to the factors discussed above.
In their study, Carroll and Tosi (2013) points out that monitoring the progress of the organizational process as well has both direct and indirect influence on the planning approach adopted by the management. The same study denotes that after planning and presenting various contingency frameworks aimed at attaining the goals is another part of the management by objective system that is necessary as a contingency factor.
As aforementioned, Goodfriend and Agnew (2014) denotes that monitoring has been identified as one of the most important aspects that would ensure the success of the organization is effectively achieved through proper implementation of its goals. The other factor to consider for the system would be setting the objectives for the workers.
While focusing on approach to planning by management, there are certain organizational objectives that are meant for the management of the organization while others are specifically meant for the workers. Koller, Schoenecker and Hagen, (2012), insist that the preparation and presentation of such objectives should be a major concern for the organization as it defines the implementation actions for the goals set by the organization hence are important for the development of the organization.
In monitoring the organization is assured of making the necessary corrections and adjustments within the system as a way of ensuring that all the practices of the organization are according to plan as it is planned by the organization’s management. It is the responsibility of the managers to specify those roles meant for the workers and present them to the workers in the most effective means possible.
There are many types of plans to consider while settling for a plan to use at an organization. Organizational operational goals plan refers to those targets that an organization intends to achieve after some time of its operation. The operational plan is therefore, the plan that a manager puts in place with the major intention of achieving the organizational goals put in place at the beginning of the project according to Goodfriend and Agnew (2014, p 1648). An operational plan is the most commonly used by many organizations of the world today because it is directly focused to the profitability of the relevant organizations.
The operational plan in known for its capability to support the strategic activities of the organizations that have used it hence it is one of the best plans for a new business of a business that intends to make much profit over a short time. Rubin, Gandek, Rogers, Kosinski, McHorney and Ware (2013, 838) insist that the operational plan has been subdivided into certain categories that make it more effective and suitable to all forms of businesses. The subdivisions include the ongoing plans, the single-use plan, a procedure, policy and a rule. All these strategies might either be used jointly or singly depending on the size and target of the business for which they are used.
The other type of plan is the tactical plan. This kind of plan concerns the determination of the lower standards to which a business is expected to operate. The tactical plan is defined such that it affects all the sectors of the business critically. The tactical plan as its name suggests is meant to ensure that all the strategies planned by the initial goals and other factors are attained accordingly and in time enough to allow the business to evaluate its progress. According to Wheelwright and Clark (2012), the tactical plan is an important way of improving the activities of a business at any level.
The tactics and strategies incorporated into the business operations by the business manager are some of the steps that would make the business better. Most businesses that require quick development or renovation prefer the use of the tactical plan as it assures the business success through the use of appropriate corrective measures as described by Gollwitzer, (2016, p 493).
The strategies provide the organization with direction as it formulates solutions to the various challenges that the business might be faced with during the time it operates. The tactical plan just like the operational plan is an effective way of ensuring that the organization maintains its practices and makes more profits.
The last type of plan is the contingency plan. This plan solely depends on the intelligence of the manager in charge of the organization. The decisions made by the manager determine the overall success of the business in this case. For instance, the contingency plan demands that a business puts in place an alternative plan for use when the original plan of the business fails. The prompt decision making and other factors that are determined by the manager of an organization are part of the contingency plan. The contingency plan also requires that the manager proves his or her capability to lead through decision making for majority of the organizational activities. The contingency plan is appropriate for use in businesses that are operating under unstable conditions as stated by Werker (2013, p 251).
The unstable conditions might be because of the government policies and regulations among other fluctuating factors that might directly influence the activities of the business to the negative direction. In the contingency plan, even factors that are beyond the control of the business manager would be solved amicably by involving other people apart from the manager. The contingency plan in most businesses acts as a recovery plan for the business. Stark and Lattuca (2017), mention that all the three types of plan discussed in this case could either be used jointly of just one depending on the target and size of the organization for which they are used. However, each type of plan has its benefits and limitations that need to be considered before they are put into use at any time.
The process of planning in an organization often demands that once the goals are set for the organization through the management of the organization, rewards should be given out to the sectors and individuals within the organization who shall have done their parts extremely well. The rewards are important for the future of the organization because through them it is possible for the organization to maximize its activities through motivated employees. In other words, the planning process needs to focus on ensuring that not only the objectives of the organization are met but even for the employees as well. Humble, (2017) claims that the planning process and type adopted would be achieved easily because once the objectives are presented to the organization’s workers, each worker and departments would target to become the best in order to receive the rewards. The organization is therefore responsible for planning but at the same time ensures the employees work towards the set plans by motivating its employees through rewards so that it can maximize its success.
Conclusion
Goal setting is one of the most important factors to consider while preparing a business plan at any level. The characteristics of a goal that makes it effective for a business plan are some of the issues that should be considered so that the business becomes successful after the plan is laid effectively. In the beginning of the process to set the goals for a business plan, the importance of the goals to the business needs to be considered first.
The conditions for ensuring a best practice goal would also be considered as an important step in creating perfect goals for the organization. The other factor considered in the study is the management by objective as a system in management. The system is necessary for use in the plan as it has been proved as one of the best strategies for use in any business institution.
The other issue discussed is the contingency factors that are used by the managers to determine the approach by an organizational manager towards making the project better. The final part of the discussion involves the discussion of the various types of plans that would be possibly used in formulating and planning any business planning at any level of management.
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