Question

Discuss two important factors that affect the formulation of mission and objectives of an organisation

Answer 1

. Size of the organization :Bigger size makes that objective formulation process complex. 2. Value system of top management :The objective formulation is affective by the value system of top management. Their philosophy,attitudes,aspiration and needs influence objective. * Philosophy reflects the creed of the organization. It specific basic beliefs,values,aspiration and philosophical priorities of managers. 3. Level of management :Organizational objectives are set by managers. Different levels of managers set different kinds of objectives. Top level managers(board of director/general managers) :They are involved in determining vision,mission,strategy and overall objectives. * Middle level managers (SBU managers ):They are involved in setting key result area objectives for strategic business units. * Lower level managers (Functional heads):They are involved setting specific operational objectives for functions. 4. Organization culture :Culture is a system of shared set of values,beliefs and norms that guide behavior.