Management is a goal-oriented process

Management is a Goal-Oriented Process

Every organisation exists for a reason — to achieve something specific. That “something” is its basic goal, and it is the fundamental reason for the organisation’s existence. These goals must be simple and clearly stated so that everyone in the organisation understands what they are working toward.

Different organisations have different goals because their purposes differ. For example:

• The goal of a retail store may be to increase sales.
• The goal of The Spastics Society of India is to impart education to children with special needs.

Management’s role here is to unite the efforts of different individuals in the organisation and direct them toward achieving these common goals. Without a clear goal, there is no direction — and management would have no purpose.

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Key Points from the Textbook

• Goal clarity is essential: Goals should be simple and clearly stated so that every member knows what the organisation aims to achieve.
• Goals vary across organisations: Each organisation has its own set of basic goals based on its mission and purpose.
• Management integrates efforts: It brings together the work of different people and channels it toward the shared objective.

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Example from the Textbook: Jack Welch at GE

The textbook includes a detailed example of Jack Welch, who became CEO of General Electric (GE) in 1981. At that time, GE had a market capitalisation of 13 billion dollars. By the time he stepped down in 2000, the firm’s turnover had increased multifold to 500 billion dollars.

Welch’s success is attributed to several principles he laid down for managers:

• Create a vision and ignite the organisation to make that vision a reality. Get people so passionate that they cannot wait to execute the plan.
• Focus on strategic issues — understand the vital issues within each business and recognise the talent needed to win.
• Focus on the main issue — see the big picture, don’t manage every detail. Inspire others to execute your vision.
• Involve everyone and welcome great ideas from everywhere. Anyone can be a leader if they contribute. New ideas are the lifeblood of the organisation.
• Lead by example — to spark others to perform, you must demonstrate the qualities you expect.

Welch mastered the four E’s of leadership:

• Energy — great personal energy …