Strategic objectives are an organizational target which efforts are directed within a specific time frame. It is a statement of what is to be achieved within a given time frame. It is the desired end result towards which all activities in an organization are aimed at.
Factors to Consider when Formulating Strategic Objectives
- The first factor to consider when Formulating Strategic Objectives is the mission of the organization.
- Formulating Strategic Objectives depends on the environment in which the organization operates i.e. the influence of external factors such as market conditions legislation, political and economic trends have an influence on the desired end result.
- Formulating Strategic Objectives also depends on the values held by the management. Management values have an important influence on the formulation of target. They may value from ethical standards to the position held on social welfare.
- The management experience also affects Formulating Strategic Objectives. This relates to the management experience of a specific market.
- The strong and weak points of the business is where the organization plans shouldn’t be made to expose the weak points of the business but instead exploit on the strength of the business. The cost of each alternative should be weighed against the benefits offered
Importance of Formulating Strategic Objectives
- Formulating Strategic Objectives provide specific direction to the activities of the organization i.e. from the foundation upon which decisions are made.
- Formulating Strategic Objectives also provide the direction for everyone in the organization
- Affects other aspects of management i.e. planning, organizing, leading, etc.
- Formulating Strategic Objectives provides a benchmark for performance measurement.
- It also provides a mechanism of control through provision of corrective measures.
- Provide motivation for people to achieve them especially if they are rewarded if they achieve them i.e. objectives serve as a source of motivation to those who are assigned the task of accomplishing them as feedback of attainment can help provide recognition and achievement of the objectives hence raising employee self-esteem.
- Formulating Strategic Objectives form the basis of delegation of authority. Good objectives are helpful in effective delegation of authority
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Conclusion on Formulating Strategic Objectives
Formulating Strategic Objectives is a key aspect that needs to be implemented by every organization. Thus its importance to businesses in Kenya.