1. Objectives must be clear and specific:

Objectives fail to guide and direct efforts if they are stated in vague and general terms. Therefore, objectives should be specified in clear, written and precise terms so that they are fully understood by the people. The mission of business should be translated into meaningful derivative objectives.

(ii) Objectives must be measurable:

To serve as standards for control, objectives must be measurable or verifiable. Translation of major objec­tives into tangible or visible operating objectives helps to motivate indi­viduals and performance can be evaluated accurately. Long range objectives should be broken into short range objectives to make them meaningful.


Precise and measurable goals facilitate development of plans at lower levels and they make work more meaningful. If the objec­tives are not measurable, the efficiency and effectiveness of the enter­prise cannot be evaluated.

(iii) Objectives must be result-oriented:

Objectives should focus on results rather than on work. Work or activity is only a means of achieving the results. For instance, the objective of increasing sales by ten percent focuses on results while the goal of opening two more sales offices focuses on activity. Objectives should be defined in terms of the results to be achieved.

(iv) Objectives should be balanced:


Different objectives should be given right emphasis and they should maintain a balance in .variety of needs and goals. Management must ensure that every objective gets its due share of activity and resources. Individual objectives must the mould of overall goals of the organization.

Priorities amongst the dif­ferent objectives should be decided keeping in view the environment within which the business operates. Time limits should be laid down for achieving the objectives.

(vi) Objectives must be realistic not idealistic:

Objectives should not be set at so high a level that they discourage the organization members to make an attempt for their realization. But the objectives should be designed to seek improvement of the organizational performance at all levels.


Realistic objectives based on organizational resources and capabilities provide incentive for high performance. On the other hand, unattainable objectives create frustration and demoralize the personnel in the organization. Objectives should be operational, i.e., capable of being converted into specific targets and assignments.

(vii) Objectives must always be valid:

They should be constantly reviewed and revised according to changing conditions.

(viii) Objectives must be acceptable:


The objectives should be compatible with the individual goals of the people. Participation people in goal-setting also increase the acceptability of objectives.