Objective plays an important role in business because it shows the path that what to achieve if company don’t have any objective and keep on workings will never be satisfy of their work because employees will really don’t know that what they want to achieve? What is their aim? What is the reason of the business existence? Setting objective is very important for business it makes the focus of employees on specific aim and goal that what they want to achieve in a specified time period when goal, time and obligations are specified then employees are get motivated towards achieving the objective. Objective is not only set for business it can be for new lunched product, services, growth objective, profitability objective, market share objective, etc
Acronym used for setting the objectives is SMART objective
“S” stands for specific: Goals should be well defined and to the point and not confusing which can be easily understood by the staff.
“M” stands for measurable: The objective should be meaningful which should motivate the staff and staff should be able to manage it.
“A” stands for attainable: The goal should be appropriate, agreed by the staff and which can be achieved.
“R” stands for realistic: the company should have the resources which are necessary for achieving the goal i.e. men money machine material if the company doesn’t have the resources then the goal is not realistic
“T” stands for timely: The dead line for achieving the objective
Examples of SMART Objectives
Growth Objective – To increase the UK operation from 10000 to 20000 in 2011
Market Share Objective –To gain 10% of market share of garments in 2015
Profitability Objective – Return on capital should be 20% in 2016.