Problems of Global Manager
Mohit Rastogi | 27 Nov 2010



Mohit Rastogi and Naini Jain
Lecturer -Department of Management Studies
Teerthankar Mahaveer University
Moradabad (Uttar Pradesh)












Problem & Challenges of Global Manager

“A naive manager is not able to overcome the problems of multiplicity of objectives.”


Management process starts with planning & the first step in planning is the setting up of organizational objectives. Objectives are the ends towards which all organizational future activities are directed. They depict a future state of affairs which an organization strives to realize.

In every business enterprise, objectives serve as the key to effective planning. They serve as benchmark measuring the performance of various people working in the organization & the overall effectiveness & efficiency of the organization. Effectiveness of planning is closely related to objectives. In fact, planning has no meaning unless it is related to certain well-defined objectives which an organization has to realize. Objectives are not only necessary in planning but they are also important in other functions of the management i.e. organizing, directing & controlling. They provide an aid to decision making.

In the management literature terms like mission, purpose, goal, target are also used for objectives. Mission & Purpose express the end results in more generalized terms while objective & goal differ conceptually, often in practice both are used interchangeably.

Objectives may be long-term or short-term or broad or specific but they should be verifiable, that is, at the end of the give period of time, we should be able to determine whether an objective has been achieved or not. They, thus, measure the effectiveness & efficiency of the management actions.

Formulation & definition of the objectives of an organization is the basic requirement of effective management. They should, therefore, be set with careful analysis & planning.






Meaning of Objective:

Setting objectives is the first step in planning. The objectives are the ideas & statements which give necessary direction & goal to behaviour & effort. Objectives are the end results towards which the activities of an organization are directed. They decide the future course of action of an organization. They lay down the guidelines for various activities & also its very existence. They serve as standard for measuring the performance of the people in the organization& the overall effectiveness & efficiency of the organization.

Objectives must possess the following:

1. Objectives must be concrete, specific, & particular.
2. Objectives should be verifiable.
3. Objectives should be result oriented.
4. Objectives should be realistic & encourage higher performance.
5. Objectives must be balanced.
6. Objectives may be interpreted.
7. Objectives are multiple in nature.
8. Objectives from a hierarchy.
9. Objectives must have social sanction.
10. Objectives may be long range or short range.
11. Objectives can be changed.

“A naïve manager is not able to overcome the problems of multiplicity of objectives.”

Like hierarchy of management there is hierarchy of objectives. Objectives like management has three levels: top level, middle level, & lower level.
Top level objective is set by the top management i.e. board of directors & top level managers like general manager or managing directors etc. this may be recognized as basic objective or overall objective or global objective or mission or purpose of the organization & is followed by all the departments, sections, sub-sections & individuals in the organization. This mission or objective is sub-divided into parts & each part concerning to a particular department & then further sub-dividing the assignments among sections & individuals creates a hierarchy of objectives. The overall objectives provide the basis for setting them at the second level which in turn becomes the basis for goals of the third level & so on.




Process of setting Objectives:

First, the board of directors & top managers are involved in determining the purpose, the mission, the overall objectives of the firm & also the more specific overall objectives in the key result areas. Middle level managers like departmental heads such as production manager, finance manager or marketing manager are involved in setting key result area objectives. The lower level managers are similarly involved in setting of department level objectives as well as objectives of their subordinates at unit levels. This hierarchy of objectives may be presented in the following diagram:

Two Approaches:

1. Top- down Approach.
2. Bottom-up Approach.

Understanding of these approaches is necessary to determine the question whether the objectives should be set at the top level & are followed by others in the organization or they may be initiated at the lower level & then communicated to the level about it, integrating the objectives set by the lower level.

Now there is a controversy whether an organization should use bottom-up approach or top-down approach. Both the approaches have positive & negative points on the basis of which conclusion cannot be drawn. A better course to take the advantages of both the approaches & a balance between the two should be strike. To what extent they can be combined depends upon the situation such as size of the organization, organizational culture, leadership style of manager, the urgency of the plan.


“Management by Objective a sound management technique imparts a reasonable degree of stability to the management at micro level.”

Management by objective (MBO) is a term which has gained immense popularity only very recently. MBO is now practiced all over the world. It is a process whereby superiors & subordinates sit together to identify the common objectives & set the results which are to be achieved by the subordinates, assess the contribution of each individual & integrates individual objectives with those of the organization so as to make best use of the available resources of the organization.

The principle behind Management by Objectives (MBO) is basically for employees to have clarity of the roles and responsibilities expected of them. They then understand the objectives they must do and the over all achievement of the organization. They also help with the personal goals of each employee.

Some of the important features and advantages of MBO are:

? Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment.

? Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

? Clarity of goals

? Subordinates have a higher commitment to objectives that they set themselves than those imposed on them by their managers.

? Managers can ensure that objectives of the subordinates are linked to the organization’s objectives.



1. en.wikipedia.org/wiki/Management_by_objectives

2. www.answers.com/topic/management-by-objectives

3. www.agribusiness-mgmt.wsu.edu/.../mgmt/MgmtObjective

4. www.1000advices.com/guru/mgmt_mbo_6stages_druker.html

5. Barney, Jay B., and Ricky W. Griffin. The Management of Organizations. Boston: Houghton Mifflin Company

6. http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-Goal-Setting.html#ixzz0wy9wp2aX