Goal Formulation| It’s Process, Approaches and Problems

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Goal Formulation

Goal formulation

The aims toward which an organization directs its resources and efforts are known as goals. They serve as the foundation for all management decisions and serve as the standard against which actual work accomplishments can be measured. They are critical to the success of any organization. Goals should be specific, attainable, acceptable, and achievable.

 Goal formulation process

Goal formulation is a process. This process consists of following steps:

1.   To review the organization’s mission before setting the goal

  •  The organization’s mission is its overarching goal
  •  Top management establishes objectives in order to achieve the organization’s mission
  •   The mission of the organization should be addressed in organizational goals.

2.   Evaluate available resources

  •  Human, physical, financial, and informational resources can all be used to achieve goals; yet, goals cannot be attained without proper exploitation of these resources.

3.   Determine the goals

  •   Goals should be set by individuals or with input from others.
  • They should flow from the organization’s mission and represent the expected outcomes.
  •  They should be explicit, quantifiable, attainable, relevant, and time-bound.

4.   Write down and communicating the goals

  • The management should write down the goals and communicate them to all relevant people in the organization which aids in the effective implementation of the goals.

5.   Review of results

  •   It is necessary to ensure whether goals are being met or not?
  •  We can identify differences between goals and actual performance through review of results.
  •   It makes easier to take corrective action.

Approaches of Goal Formulation

  1. Top-down Approaches

It begins at the top level of management of the organization. The vision and mission of the organization are established by a top level manager. It also determines strategic goals and operational goals and are passed down to the lower level of management. The top-level manager or Chief Executive Officer never participates in the goal formulation process. 

  1. Bottom-top approach

It begins at the lower level of management of the organization. Lower-level management sets organizational goals and passes them to the middle level management. This level evaluates the goals received from the lower level of management and makes some corrections if necessary and passes them to the top level of management for final approval. This level approved the goals received from the lower level after evaluation and making some correction if necessary. 

  1. MBO approach

It is a participative approach of goal formulation which is also known as an interactive approach. It is a process by which employees at different levels of the organization participate in setting goals. top level, middle level, and lower-level managers jointly set organizational goals. The MBO goal setting approach involves discussion and co-operation among management and employees.

Problems  of Goal Formulation

  • Lack of resources such as physical, financial, human, and informational can significantly influence the formulation of organizational goals.
  •  Lack of participation by subordinates
  •  Lack of support by top level management
  •  Lack of intellectual ability
  •  Nature of organization
  •  Environmental and situational factors

Also Read: What is Goal Succession and Displacement?

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