Goal Setting process and importance

The goal setting process includes the following three steps:

1.Environmental Scanning

Environmental scanning refers to the identification and analysis of various environmental forces, which affect the activities of an organization. The objective or purpose of the organization is also affected by the factors present in the organizational environment. Environmental scanning can also be defined as obtaining information, changes in the environment and the process of surrounding development. The following aspects have been included in environmental scanning:

a.Political and Legal Environment

It deals with the policies, constitution, rules and regulations, business policies, international relations created by the government. There will be subsidies and restrictions in the business sector. When establishing goals, these factors should be carefully studied and considered.

b.Economic Environment

This includes the financial status of consumers, their spending habits in the market, inflation or depression, economic policy of the government, etc. To determine financial objectives or goals; Economic environment should be considered carefully.

c.Technical Environment

It refers to the level and speed of the technical change in national and international context. The goals or target should be determined by presenting the existing technique and the provisions of the amendment should also be provided.

d.Social-Cultural Environment

It includes people's approach and system established in society. The goal or objective should not be obstructed in the norms and values established in the society.

2.Formation of Overall Goal

When the process of environmental scanning is completed, then SWOT analysis is obtained. SWOT refers to strength, weaknesses, opportunities, and threats. Environmental forces make these four variables. After obtaining the assessor of these forces, an organizational planner will be able to determine the overall goal of the organization. Generally, top-level managers determine mission, strategy and overall goals in major areas.

3.Formation of Specific Goals

When total goals are determined by the planner, it will be convenient to separate or split into smaller segments or parts. Small goals are prepared to fulfil the firm's main goals. Each segment and department has to achieve its goals. When each segment is achieved and ultimately the desired overall goals will be achieved automatically.

IMPORTANCE OF GOAL FORMULATION

The aim of the goals is to contribute towards enhancing overall organization effectiveness and maintaining proper development. Without the goals, the existence of the organization does not mean. Some major importance of goal formulation are as listed below:

Future Direction for Organization

Organizational goals provide guidance about the future. The goal provides direction to the organization. There is nothing like the goal for creating a future for the organization. Organizational goals help everyone understand where the organization wants to go. Therefore, it is important for the organization's existence.

Necessary to Set Up the Plan

Provide the basis for goal planning, decision making and management control. The important step of the goal plan is the important step. Management prepares a corporate, strategic and operational plan by considering organizational goals. Hence, its importance is significance in planning and control.

Inspiration and Employee Source

Organizational goals are a tool to increase real-time employee motivation and motivation is tool to enhance productivity. Challenging and rational goals provide a source of inspiration to smart employees in the organization. Such goals help in developing the commitment of individuals and groups for the organization's activities. In this way, the goals focus and provide the basis for the inspiration and reward system.

Effective Mechanism in Evaluation and Control

The basis for establishing an effective mechanism for evaluating and controlling the target performance. They work as a standard of performance. It is also a lower line to meet the organization's objectives and policies. This means that performance in future can be measured in a way to successfully fulfil today's goal.

Means to Set a Distinct Picture and Identity

In the future, the goal of the organization is to provide specific image and identity. Well designed and realistic goals reflect different images in corporate society. It can attract capable human resources and contribute to meeting social responsibility.