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Q 1. A Case On Verifiable Goals

The division manager had recently learned about management by objectives and decided to introduce it at his staff meeting. However, when he asked his subordinates to think about adopting objectives, they raised questions about whether the division had clear goals from the president. The division manager then stated specific verifiable goals for the division around sales, profits, employee development, and product development to provide clear objectives.

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Varaprasad Ch
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193 views

Q 1. A Case On Verifiable Goals

The division manager had recently learned about management by objectives and decided to introduce it at his staff meeting. However, when he asked his subordinates to think about adopting objectives, they raised questions about whether the division had clear goals from the president. The division manager then stated specific verifiable goals for the division around sales, profits, employee development, and product development to provide clear objectives.

Uploaded by

Varaprasad Ch
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q 1.

A Case on Verifiable Goals

The division manager had recently heard a lecture on management by objectives. His enthusiasm,
kindled at that time, grew the more he thought about it. He finally decided to introduce the concept
and see what headway he could make at his next staff meeting.
He recounted the theoretical developments in this technique, cited the advantages to the division of its
application, and asked his subordinates to think about adopting it. It was not as easy as everyone had
thought. At the next meeting, several questions were raised. “Do you have goals of the division as
assigned by the president to you for the next year?” the finance manager wanted to know.
“No, I do not”, The division manager replied. “I have been waiting for the president’s office to tell me
what is expected, but they act as if they will do nothing about the matter.”
“What is the division to do then?” the manager of production asked, rather hoping that no action
would be indicated.
“I intend to list my expectations for the division,” the division manager said. “There is not much
mystery about them. I expect INR 200 million in sales; a profit on sales before taxes of 8 percent; a
return on investment of 15 percent; an ongoing programme in effect by June 30, with specific
characteristics I will list later, to develop our future managers; the completion of development work
on our XZ model by the end of the year, and stabilization of employee turnover at 5 percent..”
The staff was stunned that their superior had thought through to these verifiable objectives and stated
them with such clarity and assurance. They were also surprised about his sincerity in wanting to
achieve them.
“During the next month, I want each of you to translate these objectives into verifiable goals for your
own functions. Naturally, they will be different for finance, marketing, production, engineering and
administration. However, you state them, I will expect them to add up to realization of the division
goals.”

Questions:
(i) Can a division manager develop verifiable goals, or objectives, when these have not been assigned
to him or her by the president? How? What kind of information or help do you believe is important
for the division manager to have from headquarters?
(ii) Did the division manager set the goals in the best way? What would you have done?
(2x5)

Q 2. Use a search engine to look for “management by objectives”. And identify how MBO is used as
a planning tool? (a) for managerial appraisal, (b) for motivating people (c) in conjunction with
strategic planning (d) for developing managers? (5)

Q 3. Search the Internet for the term “Business Process Reengineering” and discuss your findings.
(5)

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