Standing Use Plans- Concept & Objectives
Standing plans are plans that are formulated to guide managerial decisions and actions on problems which are recurring in nature. These plans provide unity and uniformity of efforts in meeting repetitive situations in an enterprise. Standing plans are classified as:
• methods and
Objectives refer to those results or purposes which an organisation aims to achieve. The characteristics of objectives are inter-related, multiple, realistic and long and short terms.
Importance of objectives:
• state mission i.e., justify existence of the organisation by giving a unique identity,
• provide direction i.e., define the destination of the organisation towards which members are expected to work,
• Basis of planning i.e., provides grounds on which different types of plans are to be formulated etc.
Management by objectives refers to management practice that aims to improve performance of an organisation by clearly defining objectives, agreed to by both management and employees. Superiors and subordinates jointly define the common goals, the results to be achieved and also assess the contribution of each individual.
Process of MBO refers to the broad organisational goals set by the top management, employees set their personal goals in accordance with the overall goals of the organisation. Employees have the liberty of selecting their own ways for achieving their objectives and performance is regularly reviewed at all levels.