Objectives provide the directions for decision- making in various areas of the organization’s operation. The objectives set the limits and prescribe the areas in which the managers can make decision. Since there is no ambiguity about the ends to be achieved, managers are quite clear about the expectations which the organisation has from its functions. From this point of view, clearly specified objectives serve a number of purposes.
- Clear definition of objectives encourages unified planning. Objectives embody the basic idea and fundamental theories as to what the organization is trying to achieve. This is necessary to give the meaning and direction to the work of the people associated with the organization. Such objectives are the focus for different individuals, and unifying effect arises when various plans prepared by several people are adjusted to a common objective.
- Objectives work as a motivating force by providing direction to organizational members. Individuals have framework to fit their personal needs with or-generational objectives. A sense of accomplishment of meeting objectives is de-sired by all individuals. Thus, fulfilling of objectives itself is a source of motivation for the people in the organization
- Voluntary coordination, an essential feature of the organizational objectives, is achieved easily if the objectives are clearly specified and mutually agreed upon. People tend to work within their own areas of discretion and adjust according to the needs of, others if they know their own and others’ objectives.