Objectives are the ends for the achievement of which managerial activities are directed. Objectives are the pre-requisites of planning. It constitutes the purpose, the attainment of which is necessary for the business. These are the standing plans of the business. These are not only helpful in planning but also in other managerial functions like organizing, directing and controlling. Clear cut objectives helps in proper decision making and in achieving better results.
SMART TEST OF OBJECTIVES
The quality of an objective can be verified by the SMART test which is as follows:
T- Time Bound
Specific means the target is clearly defined. Example: Production of fans should be increased is NOT SPECIFIC OBJECTIVE. Increase the production of fans up to 2,500 units is SPECIFIC OBJECTIVE.
Measurable means that the target state is defined as a number. Example: Capture a good market share is NOT MEASURABLE OBJECTIVE. Capture the market share of 20 million customers is a MEASURABLE OBJECTIVE.
Appropriate means that the employees can take necessary actions to meet the objective. Example: ‘Zero stolen PC’ is NOT AN APPROPRIATE OBJECTIVE as he or she cannot control all the thieves around the world. ‘Users informed twice about measures to avoid thefts’ is AN APPROPRIATE OBJECTIVE.
Realistic means the objective is attainable in the face of real situations or real environment. Example: Production of 200 units of fans in 5 minutes is UNREALISTIC OBJECTIVE. Production of 200 units of fans in a day is REALISTIC OBJECTIVE.
The time to achieve target must be stated. Example: Deliver the food is NOT A TIME BOUND OBJECTIVE. Deliver the food within 30 minutes is a TIME BOUND OBJECTIVE.