Management drives at the goals through objectives. This act is strengthened by management policies. The two combine to mobilize the enterprise.
Objectives are aims attempting goals because they are tasks before the management to achieve.
These are defined as the mission statement. Down the line, company objectives may include the process and final delivery method of goods. The advantage it has over competitors in Services, Production, Sales, Inventory, Market Share and Profit.
KINDS OF OBJECTIVES:
There are two (2) types of objectives,
General Objectives and Specific objective
General Objectives: The objectives are those determined by the Board of Directors
Specific Objectives: These Objectives take care of mercellenous issues. The maintenance of branches Opening of additional ones. The specific objectives also must go through the approval of the Board of Directors meeting.
[Easily understandable, Easily adaptable, Easily enforceable]
MAJOR ADVANTAGES OF OBJECTIVES:
The objective at a glance defines the outlook and business interest of the company or concern. They bring out basic ideas and theories behind a company. Therefore, objectives drive Mission Statement of the Rules of Practice in the Board of Directors meeting.
Policies are firm and strong Directives from the Authorities. They are framed out from the objectives; therefore policies represent the framework of the enterprise.
Policy formulation may begin at any Level of Management, it may flow from downward or upward Levels.
Note: downward or upward Levels, downward Level-middle-management and upward Level-high Level management- the Board members.
Firms must operate within its Lay-down Rules. If all promotions were made in the past from within, this would appear to be implied company policy. Therefore, there would be great trouble of great concern, indeed if a new appointment were made from not within. “This would show a change of policy”, had issued or had assumed.
RULES AND PROCEDURES ARE OFTEN CONFUSED WITH POLICIES:
Rules are more specific than policies, misuse of Rules usually entail penalties because Rules ensure from Policies. We can say that Policy establishes a guiding framework for Rules. Remember that Policies are broader than rules and are stated in a general language. Procedures show and reflect policy and provide an accepted standard method by which a function is performed. It also provides a check when events do not take place. Procedures are subordinate to policy and are valuable in training.