Long-range Planning Objectives and Goals

Long-range planning Objectives and goals

We may identify two basic types of organizational objectives:

Broad corporate objectives which are general statements of policy which represent the ideals of the organization.

Goals which are derived from these objectives and which establish specific targets for the organization. They include also lesser goals such as targets for sub-units, such as departments, and performance standards for managers and employees.

It follows, therefore, that there exists a hierarchy of goals applicable to every level of the organization, which are subordinated to the main goals and which interpret those goals. The management problem is not simply setting goals, but securing the attainment of those goals. We shall examine the behavioural aspects of the latter problem where we discuss the manner in which the style of management known as 'management by objectives' attempts to create a high degree of goal congruence between the personal objectives and organizational goals. For the moment, we shall concern ourselves with the analysis of organizational objectives and organizational goals.

Organizational objectives

These objectives serve as guidelines for establishing goals. Example

Hygrade Cutlery Ltd has the following objectives:

(1) Profit objective-to achieve a profit level sufficient to reward share-holders adequately and to protect the interests of creditors.

(2) Financial objectives-to secure adequate financial resources and to report to management on the utilization of these resources.

(3) Market objective-to build public confidence and to create goodwill for products bearing the company's name, thereby increasing customers' preference for the company's goods.

(4) Production objective-to increase the efficiency of production of high-quality products.

(5) Employee objective-to provide good jobs, wages and working conditions, work satisfaction, stability of employment and opportunity for advancement, in return for loyalty, skills, initiative, effort and teamwork.

(6) Innovation objective-to develop new and better products.

Interested in Cost Accounting

Read on: Long Range Planning

Long-range planning is not a single technique, nor is it just one area of management responsibility. It is a systematic attempt to plan the entire behaviour of the organization in the long-run, and in the case of profit-making organizations, it attempts to increase the rate of profitable growth (Perrin, 2018). Here, we shall examine the stages involved in long-range planning, and we shall discuss the accountant's role in that process.

Long-range planning is concerned with:

1 the determination of long-range objectives;

2 the preparation of the position audit;

3... see: Long Range Planning