EducationWhy is it important for companies to have predetermined goals?

Why is it important for companies to have predetermined goals?

Management and the individuals that have predetermined goals lead the organization in a better direction. The organisation and any individual will be able to function properly and determine the path of future actions.

The goals help to move forward with a picture of actions that can be executed with the help of planning.

The statement said by Warren Buffett that an idiot with a plan is better than a genius without a plan because planning plays a very important role while establishing our predetermined goals. Planning bridges the gap between where we stand today and where we want to stand tomorrow. one who determines the plans and a proper strategy to work with always stands out. A proper plan can lead the organization to success. Planning is looking into the future for a specific period. It can be changed according to the changing environment of the business; past experiences and records help to prepare a proper plan. If an organization steps into the market without a proper strategy and plan, it will not be able to sustain itself in the market following the uncertainties and hardships. Similarly, if an individual starts after setting the goals, he/she will be able to get the desired results.

 Following are the characteristics of predetermined goals:

  • It helps to determine future steps.
  • It helps in making hard-work a continuous process in the organization that helps to determine the success rate and requires time.
  • Setting up goals is used by all the departments of the organization.
  • It is very flexible and can be changed according to the circumstances.
  • It is an interdependent activity that is accomplished along with other business activities.

Therefore, if an individual or an organization has made a proper plan to achieve the predetermined goals, he/she works more efficiently.

Importance of predetermined Goals.

In this competitive era, one means a proper plan to tackle all the problems coming in the way. After setting the goals, an organization starts with planning, which includes various analysis and strategies.

An organization with a proper plan will be able to track the performance and compare the performance with its records. The hardships faced by business organizations, for example, economic, social or political, can be overcome with the help of planning. Planning not only bridges the gap between present and future but also determines the path on which the organization will work. Planning helps to maintain efficiency in operation and helps to draw all the focus on achieving the goals of the organization.

Planning helps to determine in advance, what to do, how to do when to do, and who to do. Every department in the organization needs a separate plan for its functioning. The sales department needs a plan which will help to increase sales of the products and services organization sales. The Production department will need a plan which will help to increase efficiency in producing and the speed of production, and the Marketing department will need a plan which will help to increase and build proper goodwill for the company which will automatically increase the sales and growth.

  • Helps in the establishment of the objectives The first step of planning is to set an objective on which the whole plan will work and can be framed. Planning starts with the identification of the goals which will be achieved by the organization. The goals are set, keeping in mind the internal and external environment of the business.
  • Predict the business environmentThese assumptions are made keeping in mind past experiences and future predictions. While establishing planning premises, one has to calculate the availability of several factors that determine the production of the products and services, for example, demand, labour, capital, raw materials, etc.
  • Planning gives options – a list of options is prepared, which is used in uncertain situations and determines the best possible plan for the organization.
  • Planning helps in controlling standards -the plans help to establish a controlling standard, i.e. the comparison between planned and actual output. If there is any variation between the planned and the actual output, measures can be taken to control the same.
  • Planning helps to achieve the objective of departments of the organization – these are the sub-plans that are used to accomplish the main objective of the organization. This sub – plans are made to achieve
  • Participation and cooperation between all the employees – To implement any plan, the cooperation and participation of every employee are very important in the organization. The suggestions, discussions, and criticisms by the employees of the organization help to achieve the goal more efficiently and effectively.

If a goal has been set by an individual or an organization, planning is very important to achieve that goal. Therefore, proper planning should be the primary function of the management required at all levels or by all the departments of the organization, which will help attain the predetermined goals of the organization and the organization. Planning can be termed as a futuristic approach towards the development of society which involves a continuous process because one has to make plans and enable its implementation after it. Planning is a process of decision-making that involves mental exercises that are higher thinking capabilities to predict the future and learn from the company’s past experiences. In the case of individuals, it comes from past experience of life. Planning provides a direction that makes it clear for the employees the process of achieving the goals. Planning reduces the risk of uncertainties by which an organization can handle the circumstances, which will test employees’ efficiency and capabilities of fighting through tough times. Planning, along with its advantages, also has some limitations, which involve huge cost, time consumption, lack of accuracy, etc. Planning will help to prevent wasteful activities and reduce overlapping. If the managers or the other employees follow the plan that the organization has established for them, it becomes easy for them to coordinate, and they do not end up doing the same work.

Thus, the organization needs to follow planning to achieve the goals of the organization, and an individual needs to plan to achieve the goal in his life.

Ruchika Sureka
Ruchika Sureka
Reading gives me the right mindset to think and interpret. The curiosity to read is something that makes me realize the diversity of literature and books we have in culture. I am very fond of books, and I like reading because it gives me peace.

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