How a Network of Objectives is related within an Organization

If objectives or goals are not interconnected and if- they are not mutually supportive, people are quite often likely to pursue paths that may seem good for their own respective departments but may be detrimental to the organization as a whole.

That is why both objectives and planning programs normally form a network of expected results and events. Objectives and programs constitute an interlocking network.

The following figure depicts the network of contributing programs (each having its own appropriate objectives) that constitute a typical new product program.

Managers must ensure that- the components of the network “fit” one another.

Fitting is not only a matter of having programs implemented but also a matter of timing their completion, since taking up one program often depends on completing another first.

Objectives of each individual department must be so set that while serving its own objectives, do not conflict with or hamper the objectives of the other departments.

For example,

the manufacturing department may see that long production runs tend to serve its objectives best.

But this might hinder the marketing department’s intention to have all relevant products readily available or the objective of the finance department to maintain investment in inventory at a certain low level.

A firm may have several objectives to achieve. A few of them, for example, may be:

  • Producing certain kinds of goods for the home market
  • Earning profits on investment at certain rate
  • Improving positioning of the firm’s products in the market
  • Ensuring fair prices and high quality of products
  • Enhancing productivity to an expected level.