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Management - Vikhanskiy OS

3. Setting Goals

The process of setting goals in different organizations goes differently. In some organizations, setting goals is fully centralized, while in other organizations there can be complete decentralization. There are organizations in which the process of setting goals is intermediate between complete centralization and a complete decentralization of the character. Each of these approaches has its own specifics, its advantages and disadvantages. So, in case of full centralization in setting goals, all goals are determined by the highest level of the organization's management. With this approach, all goals are subject to a single orientation. This is a definite advantage. At the same time, this approach has significant shortcomings, the essence of one of which is that at the lower levels of the organization there may be an aversion to these goals and even resistance.

In the case of decentralization, along with the upper level, the lower levels of the organization also participate in the process of setting goals. There are two schemes of decentralized goal setting. At one - the process of setting goals goes from the top down. The goal decomposition is as follows: each of the lower levels in the organization determines its goals, based on what goals were set for a higher level. The second scheme assumes that the process of setting goals goes from the bottom up. In this case, the lower links establish goals, which serve as the basis for setting goals for a subsequent, higher level.

As can be seen, for different approaches to setting goals, there are significant differences. However, the general requirement to establish goals is that the top management should play a decisive role in all cases.

From the point of view of the logic of the implementation of actions performed in setting goals, we can assume that the process of goal-setting in an organization consists of three consecutive stages. At the first stage, the results of the analysis of the environment are comprehended, the second is the development of the corresponding mission, and finally, the goals of the organization are directly developed at the third stage. Previously, the textbook addressed issues related to the analysis of the environment and the mission of the organization. Now consider the process of direct development of the organization's goals.

Correctly organized process of development of goals involves the passage of four phases:

• identification and analysis of those trends that are observed in the environment;

• setting goals for the organization as a whole;

• Building a hierarchy of goals;

• setting individual goals.

The first phase. The influence of the environment affects not only the establishment of the mission of the organization. The goals also strongly depend on the state of the environment. Earlier, when the issue of requirements for objectives was discussed, it was said that they should be flexible so that they could be changed in accordance with the changes taking place in the environment. However, it should not be concluded from this that the goals should be tied to the state of the environment only by constant adjustment and adaptation to the changes that occur in the environment. With the right approach to setting goals, management should strive to foresee the state of the environment, and set goals according to this foresight. To do this, it is very important to identify trends that are typical for the processes of development of the economy, social and political spheres, science and technology. Of course, it is impossible to provide everything correctly. Moreover, sometimes in an environment there can be changes which in any way do not follow from the revealed tendencies. Therefore, managers must be prepared to respond to the unexpected challenge that the environment can throw them. Nevertheless, without absolutizing the situation, they must formulate goals so that the situational components find their reflection in them.

The second phase. When setting goals for the organization as a whole, it is important to determine that, from a wide range of possible performance characteristics, the organization should be taken as a basis. Next, a certain tool for quantifying the magnitude of goals is selected. Of particular importance is the system of criteria used in determining the goals of the organization. Typically, these criteria are derived from the mission of the organization, as well as from the results of the analysis of the macroenvironment, industry, competitors and the position of the organization in the environment. When determining the objectives of the organization, it takes into account what objectives it had at the previous stage and how the achievement of these goals contributed to the fulfillment of the mission of the organization. Finally, the decision on goals always depends on the resources that the organization has.

The third phase. Establishing a hierarchy of objectives involves the definition of such goals for all levels of the organization, the achievement of which by individual units will lead to the attainment of corporate goals. At the same time, the hierarchy should be built for both long-term and short-term goals.

The fourth phase. In order for the hierarchy of goals within the organization to reach its logical completion and become a real instrument for achieving the organization's goals, it must be communicated to every individual employee. In this case one of the most important conditions for successful activity of the organization is realized: each employee is included through his personal goals in the process of joint achievement of the organization's ultimate goals. Employees of the organization in such a situation get an idea not only about what they have to achieve, but also about how the results of their work will affect the final results of the organization's functioning, how and to what extent their work will contribute to the achievement of the organization's goals.

The established goals should have the status of law for the organization, for all its departments and for all members. However, the requirement of mandatory goals does not follow their eternity and immutability. It was already said earlier that, due to the dynamism of the environment, goals can change. You can approach the problem of changing goals as follows: goals are adjusted whenever circumstances require it. In this case, the process of changing the goals is purely situational. But many organizations use the approach of systematic preemptive change of goals. With this approach, the organization sets long-term goals. On the basis of these long-term goals, detailed short-term goals are developed (usually annual ones). Once these goals are achieved, new long-term goals are being developed. At the same time, in order to take into account those changes that occur in the environment, and those changes that occur in the set and level of requirements put forward in relation to the organization by the subjects of influence. On the basis of new long-term goals, short-term goals are determined, upon the achievement of which new long-term goals are developed. With this approach, long-term goals are not achieved, as they change regularly. However, a long-term target orientation is constantly present in the organization's activities and the course is adjusted regularly taking into account emerging new circumstances and opportunities.