What are the 6 important Essentials of business Objectives?
If objectives are to serve as effective guides to action, they must possess the following essentials:
1. Must be understood:
Everyone must understand precisely what the objective is. Every worker and every manager must have a clear mental picture of the aim or purpose towards which he will be working. The objective must be understood not only by all persons expected to work toward accomplishing it, but by all who will be affected in any way by it.
2. Must be concrete, specific, particular:
An individual cannot direct his efforts constructively if the purpose he seeks to achieve is nebulous, abstract, or vague. A manager cannot be effective unless he knows precisely what his target is, nor can a subordinate unless he knows specifically what is expected of him.
Hence every objective must be clearly and concisely spelled out. The parameters or dimensions of the purpose must be so delineated that there can be no doubt about the specific, particular ends being sought.
3. Must be Desirable:
An objective must always be worthy that is, beneficial, fair, or equitable both to the company and to the surrounding community. Where groups will be affected, one must consider whether the end is socially desirable. Its desirability must also be considered from the point of view of the individuals who are expected to direct their efforts toward its fulfillment.
4. Must be Flexible:
Goals established in the light of existing knowledge may be inadequate to meet changing realities. As conditions alter, goals may have to be tailored to accommodate change. Sometimes an objective formulated from existing information turns out to be unrealistic when additional data are produced.
Under those circumstances, the original goal should be modified. Business objectives should be so designed that they allow for such modifications. All objectives should be flexible enough to be modified as the situation dictates.
5. Must be balanced:
Once a hierarchy of objective has been established, there may be a tendency for certain objectives to claim undue emphasis. Part of a manager’s role is to regulate the balance among the multiple objectives within his sphere of influence.
6. Must be Attainable:
Perhaps the most important criteria for an organisational objective is that it is must be attainable. All goals must be realistic and therefore should be capable of accomplishment.