Relationship between annual objectives and policies

Relationship of Policies to Business Objectives | Your Business

relationship between annual objectives and policies

Answer to Describe the relationship between annual objectives and policies. must be words original work. do not copy and paste. Annual objectives are short term goals that would usually contribute to the Policies are the rules of how the company conducts business. Objectives are the principles that guide a business, and policies are the rules that Corporate Governance Examples · Differences Between Public Relations.

Therefore, the starting of the production of a new product or the establishment of a new factory also needs to be considered as plans. The classification of the plans can be made on the basis of the origin, purpose, used on the type of plans. There are certain plans that are present in the form of standing plans and at the same time, some other plans are single use plans. As the name suggests, the single use plans are only used on one occasion only and are not used again. On the other hand, the standing plans can be used by the organization repeatedly, on more than one occasion.

Some of the examples of standing plans include the objectives, policies, procedures and rules and strategies etc.

relationship between annual objectives and policies

But at the same time there are plans like budgets and programs that are only used on one occasion and once they have been used, the organization is required to formulate these plans all over again. Therefore, different types of plans can be described as follows: Therefore, goals or objectives are the results that the organization tries to achieve. Objectives are considered as a prerequisite for planning.

The managers cannot make plans if they have not established the organizational goals first. While the objectives of the enterprise are the basic plans of the firm, it is also possible that various departments of the organization may also have their own objectives. Therefore, even if the objectives of the departments are required to contribute to achieving the objectives of the enterprise, but it is possible that the goals adopted by these two can be totally different.

Relationship of Policies to Business Objectives

For example, while the objective of the enterprise is to earn a particular amount as profit but on the other hand, the goal of a particular department is to sell the products.

Advertisements Purpose or Mission: It is very important that each and every organization should have its own purpose because purpose makes the working of the organization meaningful.

The society also assigns a purpose or a mission to every organization.

POLICY VS. STRATEGY IN HINDI - Difference - Strategic Management - BBA/MBA - ppt

For example the purpose of business organizations can be to produce and distribute products or services. On the other hand, the purpose of the mission of public works department can be to construct roads. In this way, the purpose of the organization can be considered as a standing plan in case of business organizations and it also defines the basic purpose of the organization which allows the other actions to be designed by keeping in view the purpose of the organization.

In this way, the purpose of the organization comprises of the long-term vision regarding the future of the organization and the reasons why the organization exists. The mission of the organization indicates the activities that the organization is going to undertake at present and in future. Policies are standing plans that guide the management that is engaged in managerial operations.

The policies of the organization also prescribe the boundaries within which the managers have to make decisions and it also ensures that all the decisions made by the managers are directed towards achieving the goals of the organization.

At the same time, the policies also help in dealing with the issues before they take the shape of problems. In this way, with the help of policies, the managers do not have to waste their time in analyzing the same situation whenever it arises. Policies also allow the managers to delegate authority within the permissible parameters and still the managers can retain control on these activities.

Describe the relationship between annual objectives and policies?

Therefore, it can be said that policies encourage initiative and discretion but also ensure that they remain within the limits. The term strategy was used in order to elaborate the plans that were made by keeping in view the probable moves of the adversary. However these days, strategies are used by the managers in the field of business operations also. In this way, strategies can be described as the comprehensive and integrated plans that are designed by the managers with a view to make sure that the organization achieves its objectives.

Therefore the managers decide the long-term goals of the organization and then the required resources are allocated so that the desired results can be achieved.

The purpose behind making strategies can be described as to portray a picture of the type of enterprise that is being envisioned. However, the strategies do not try to provide the programs that are required to achieve the objectives but they provide a framework that guides the thinking of the managers and also their actions.

Describe the relationship between annual objectives and policies

The procedures provide details regarding the ways in which the things have to be done by the organization. In this way, there is no room for personal judgment in these cases. It is also important that the procedures should help in implementing the policies of the organization. The procedures should also decide the policy of accountability. Therefore, a procedure can be described as a series of related tasks that have to be done in the chronological order and it is also the established way in which a particular work has to be performed.

Advertisements There is a significant difference between procedures and policies. The procedures act as a guide regarding the action while the policies guide the thinking of the managers. Policies are the guidelines that help in taking decisions but the procedures provide the various methods through which each stage of work has to be accompanied. While there is a scope of interpretation in case of policies in order to see if a particular policy fits generation but there is no such scope as the procedures are tailor-made.

Procedures offer certain advantages to the organization. First of all, the procedure provides details regarding these sequences that need to be followed in order to complete a particular task. It also allows the managers to keep updated if the work is going on according to the plans. In this way, procedures can also be used as a control mechanism because when a particular procedure has been adopted to do a particular work, it can be immediately noted if there is any discrepancy in completing that work.

Procedures also help the managers in ensuring consistency as well as the uniformity of performance. Therefore, when procedures have been established in the organization, the managers can use these procedures again and again. With the help of standardization of procedures, the requirement for decision-making in similar situations by the managers can also be reduced.

Therefore, whenever there is a need to perform a similar task, the same procedure can be adopted by the managers to do that task.

relationship between annual objectives and policies

In this way the efficiency of the organization is also increased. Procedures also allow the managers to establish a particular sequence that has to be followed for each work. In this way the managers can coordinate various activities of different departments or the sections of the organization because in this case, all of them will be following the same procedures.

In computing you could have a bank account class, defining characteristics and things that you can do with it. It could define that a bank account has an account number, the owner of the account, a balance, a facility to lodge money, a facility to with draw money etc. That is the case for any bank account. Your bank account is an object, an instance of that class. Your account isn't my account, but both of our accounts are objects and have the characteristics as defined by the bank account class.

What is difference between policies and objectives? An appropriate strategy should depict something that an organization"executes. A policy doesn't have to be time-bound, but it should set expectations for the people involved in the execution of a strategy.

Describe the relationship between annual objectives and policies? - Blurtit

For instance a company may have a goal to dominate the market in software for calibrating automobile engines. Their objectives could be 1 purchase all of the competitors close to home in year one, then the rest in North America in year two, and rest of world after that. If they meet objective 1 and 2, they have partly executed on the strategy,but not completely.

They may or may not achieve their goals. A lot of the employees, feeling a bit ethical and ashamed, decided that instead of raiding the pension funds of the competition, they helped each employee setup a IRA to help them with their retirement.

The employees didn't adhere to the policy, therefore the objectives were not met, the goal was not achieved, and the strategy could not be executed.