Agriculture Reference
In-Depth Information
Step 4: set goals/performance objectives
The development of goals and/or performance objectives is the next step in the planning
process.
Goals
are the specifi c quantitative or qualitative aims of the company or business
group that provide direction and standards one can use to measure performance. Top man-
agement, boards of directors, and/or chief executives often develop these goals to help bring
focus and specifi city to the organization's mission (see above). The mission statement is the
target toward which goals are aimed. In turn, goals are the targets toward which performance
objectives are aimed. Well-stated goals should:
1.
Provide guides for the performance objectives and results of each unit or person
2.
Allow appraisal of the results contributed by each unit or person
3.
Contribute to successful overall organizational performance
Performance objectives
are then set for specifi c units and/or individuals. They provide the
performance targets at the unit and/or individual levels that are needed to accomplish the
broader, longer-range strategic goals. Performance objectives are usually set for shorter time
periods than strategic goals and usually are defi ned by measurable results. Note that all these
processes are going on continuously during the planning process. Performance objectives
cannot be set in a vacuum, but must be attainable. Therefore, performance objectives must
be a consequence of the gathering and analyzing of relevant information and facts.
Some management specialists consider setting goals or performance objectives to be
the fi rst step in the planning process. In our discussion of strategic planning above, we
started the strategic planning process by developing vision and mission statements. In a way
these individuals are correct, but our approach to planning, accumulating, and evaluating
information occurs before goal setting is part of the process of setting performance objec-
tives. In practice, many of these steps occur simultaneously—data may be used to develop
an initial set of goals which leads to a need for more data, which requires refi ning the goals
and so on. The Wheel of Management in
Figure 2.1
suggests that the planning process is a
continual loop.
Step 5: develop alternatives
After the performance objectives have been set, agribusiness managers must explore differ-
ent ways of getting wherever they want to go by
developing alternative
courses of action.
Here again the relationship between performance objectives and results can be seen. The
results achieved depend upon the alternative activities selected to meet the objectives.
Alternatives must be weighed, evaluated, and tested in the light of the agribusiness'
resources.
Imagination is crucial since new ways and/or new paths may be the key to success. It is
important in this step to be creative, yet practical, in generating alternatives. The conditions
surrounding each decision must be carefully considered. For example, a fi rm might believe
that equipping its sales representatives with smart phones and training them in the use of a
new database management package might be the best alternative to improve the productivity
of the sales force. However, the fi rm's budget situation may mean that only one-third of the
sales representatives can get new phones, or there may be poor wireless coverage in parts of
the sales territory. So, the fi rm may need to look for other (low cost) options to boost sales
performance to complement the use of smart phones and new software.
