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Goals - Objectives and Targets

The process of management begins with setting of goals, objectives and targets. The goals are

long term aims to be achieved by the organization; objective are relatively short term milestones

to be accomplished, while the targets generally refer to physical achievements in the

organization's business. The goals, objectives and targets are so set that they are consistent

with each other and help to achieve each other. These are to be achieved within a stipulated

time and failing to achieve the same, means less of business profit and image. The difference

between these entities can be best understood by examples in the three types of organizations

given in Table below.

Business Organization Hospital State Transport

Organization

GOAL Be a leader in the Be a hospital providing Connect all villages of

household consumer total service to the population 5000 and

goods industry, with patients. above by S T service

modern amenities

OBJECTIVES Provide complete product Establish 300 bed Management state

range in the area of hospital in three years. transport at the rate of $ 5

cleaning, preserving and per mile traveled.

entertainment.

TARGETS 20 per cent growth per Achieve $ 800 bed per Achieve 90 percent

annum in turnover. day earnings. average seat occupancy

everyday.

In an organization, as time progresses, business goals, departmental goals, functional goals

and personal goals emerge, which create conflicting environment in the organization. The goals,

objectives and targets helps in accomplishing objectives and accomplishment of objectives

leads to the attainment of goals. Careful determination of these entities is, therefore, essential
for a successful management process. The goals, objective and targets become reference

points for strategic planning, resource planning, and operations planning.

It further helps the management to identify key areas of business and key areas of management

attention. Its advantage is that it stimulates the development of people and provides motivation.

According to Peter Drucker, goals and objectives are necessary in every area where

performance and results directly and vitally affect the survival, growth and prosperity of

business.

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