Strategies in Action
WRITTEN REPORT
CHAPTER 5
STRATEGIES IN ACTION
FMA42FC1 – BUS 403
DAROY, KAREN
CALAÑGIAN, EVA ISABEL
SORIANO, JOCEL
VILLANUEVA, EDNALYN
Long Term Objectives
Performance goals of an organization, intended to be achieved over a period of five years or more. Long-term objectives usually include specific improvements in the organization's competitive position, technology leadership, profitability, return on investment, employee relations and productivity, and corporate image.
The Nature of Long Term Objective
Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units. Objectives are commonly stated in terms such as growth in assets, growth in sales, profitability, market share, degree and nature of diversification, degree and nature of vertical integration, earnings per share, and social responsibility. Long-term objectives are needed at the corporate, divisional, and functional levels in an organization.
They are an important measure of managerial performance.
Varying Performance Measures by Organizational Level
Organizational Basis for Annual Bonus Merit Pay
Corporate -75% based on long term objective -25% based on annual objective Division -50% based on long term objective -50% based on annual objective Function -25% based on long term objective -75% based on annual objective
The Desired Characteristics of Objective
1. Quantitative 2. Measurable 3. Realistic 4. Understandable 5. Challenging 6. Hierarchical 7. Obtainable 8. Congruent across department
The Benefits of Having Clear Objective
1. Provide direction by revealing expectations 2. Allows synergy 3. Aid in evaluation by serving as standard 4. Establish
CHAPTER 5
STRATEGIES IN ACTION
FMA42FC1 – BUS 403
DAROY, KAREN
CALAÑGIAN, EVA ISABEL
SORIANO, JOCEL
VILLANUEVA, EDNALYN
Long Term Objectives
Performance goals of an organization, intended to be achieved over a period of five years or more. Long-term objectives usually include specific improvements in the organization's competitive position, technology leadership, profitability, return on investment, employee relations and productivity, and corporate image.
The Nature of Long Term Objective
Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units. Objectives are commonly stated in terms such as growth in assets, growth in sales, profitability, market share, degree and nature of diversification, degree and nature of vertical integration, earnings per share, and social responsibility. Long-term objectives are needed at the corporate, divisional, and functional levels in an organization.
They are an important measure of managerial performance.
Varying Performance Measures by Organizational Level
Organizational Basis for Annual Bonus Merit Pay
Corporate -75% based on long term objective -25% based on annual objective Division -50% based on long term objective -50% based on annual objective Function -25% based on long term objective -75% based on annual objective
The Desired Characteristics of Objective
1. Quantitative 2. Measurable 3. Realistic 4. Understandable 5. Challenging 6. Hierarchical 7. Obtainable 8. Congruent across department
The Benefits of Having Clear Objective
1. Provide direction by revealing expectations 2. Allows synergy 3. Aid in evaluation by serving as standard 4. Establish