Management shapes the organization. In order to maintain the current competitive pace, the companies and organization need to develop strategies, plans and objectives. Theoretical consideration in this direction proves beneficial in terms of attaining justification for every step taken for executing the business activities (Oakland 2014). Typical example of this can be Miles and Vergen’s landmark study, which helps in setting the landmarks or benchmarks for upgrading the standards and quality of the business performance. Considerations of the conditions in goal setting is assistance in terms of developing best practices.

Goal setting adds focus to the business operations. However, for this, consciousness is needed from the managers. Involving the employees in the process of goal setting is vital in terms of gaining their opinions. As per the arguments of Rossiter, Percy and Bergkvist (2018), ethical code of conduct is essential in terms of preventing commercialization with the opinions of the employees. This is necessary in terms of gaining trust, dependence and loyalty from the clients and the customers.

The report is prepared to discuss about the management and organisation within the global business competitive environment. With the fast pace development and growth nowadays, the management of business environment is essential for managing operations and at the same time, main competitive within the business environment with ease and effectiveness. According to the viewpoints of Welsh and Ordóñez (2014), the global environment of companies include various forces and conditions that are associated with the organisational boundaries and it has also affected the way business operates and shapes the behaviours of people working for the organisation. This also presents the managers of the business organisations with various scopes, opportunities as well as threats associated with the management of business in global environment (Depledge 2013).

To identify the scopes and opportunities along with the threats due to the environmental forces, the managers of companies must differentiate between the task environment and the general environment considering the various stakeholders in business such as the suppliers, customers, distributors, competitors and even the shareholders or investors. The multiple stakeholders like suppliers who provided the organisation with resources as inputs and produced the raw materials and also the human resources (Welford 2016). To organise within the global environment, it is important to maintain good relationships with the suppliers while the power distributors are also needed to be dealt with for managing control of clients in the market, furthermore ensure that the consumers make purchases of goods and services consistently with proper support and help obtained from the managers of the organisations.

The presence of strong competitors is also responsible for managing price competition and the failing prices could furthermore reduce the level of accessibility to resources and lower profit level. The report will also demonstrate about the benefits of Miles and Vergen’s landmark and how it has helped in setting goals and objectives required to be achieved by the organisation (Greenberg 2014). There are various conditions as well that are needed to be satisfied for ensuring that the best practices are followed to set goals and accomplish those with ease and efficiency. Along with this, the report would shed light on the different contingency factors, which assist the managers in the process of planning. For this, the report would consider different types of planning, offering the choice to upgrade the standards and quality of business operations.

Management by Objectives

A goal or objective is something that is aimed at achieving in the future through proper planning achieved by preparing  good design that specifies the resources that are allocated along with the schedules and actions that are to be undertaken for accomplishing the goals and objectives. The levels of goals include the mission statement that is set by the top level managers while the strategic goals and plans are managed by the senior management (Alkhafaji and Nelson 2013). The tactical goals and plans are managed by the middle management while the operational goals and plans are enacted with the involvement of lower level management. According to Miles & Vergen’s landmark study into the setting of goals and objectives, the goals are needed to be specific, realistic, accepted by the person, used to evaluate performance, linked with the feedbacks and rewards, set by individuals along with learning oriented (Carroll and Buchholtz 2014). These goals, if accomplished, can help in managing the organisational values and at the same time, managed improved business performance. Based on the landmark study introduced by Miles & Vergen, it is to be believed that the goals are subjected to be SMART, i.e., specific, measurable, achievable, Realistic and must be accomplished timely as well (Binder 2016).

The aspect of time in the goals is crucial in terms of completing the tasks within the stipulated time. Consciousness towards this direction helps in executing the tasks in an efficient and effective manner. Being able to justify the reality, measurability, achievable, specificity reflects the clarity and knowledge towards the steps taken for fulfilling the identified and specified objectives. Revisions of the goals upgrades the standards and quality of the business operations. Consistency in the revisions and evaluations is vital for detecting the drawbacks, which needs to be modified for increasing the sales revenue and profit margin.

The philosophy of management was introduced by Peter Drucker in the year 1954 and the management by objectives is based on the various systematic methods that help in setting the goals and objectives along with proper strategic planning. The various steps for management by objectives include specification of goals and objectives, management of participative decision making, monitor and review the progress along with performance feedbacks obtained on the basis of tasks performed (Fukuda-Parr 2016).

The Management by Objectives, also stated s the MBO is an effective process that defines the specific objectives at the organisation and allows the management of the organisation to convey or send the messages and information to the members of the organisation and even provide necessary measures for the accomplishment of tasks in a sequential manner. This process allows the managers of the organizations to understand the tasks that are needed to be done along with the creation of an enhanced and productive working environment where the organisational members can view their accomplishments and the same time, measure the performance goals and objectives needed to be achieved with the reinforcement of a positive work culture and good working environment (Jones, George and Langton 2013).

The management by objectives or MBO has also benefited many business organisations by comparing the performance of the employees with the organisational standards that are set, furthermore engage the employees altogether for setting the goals and select the right course of action through fulfilment of roles and responsibilities easily too. The system associated with the management by objectives also has been considered as an effective process that can allow the superiors and subordinates to work in coordination and understand shared vision and goals by defining their own areas of responsibility and obtain the results that they expected (Mio, Venturelli and Leopizzi 2015).

The MBO concept is based on various principles where the objectives and goals are set by the employees and can be challenging as well, yet achievable. The daily feedbacks are obtained and focus has been put on providing rewards to the employees rather than penalising or punishing them for their misconduct unintentionally. The personal growth and development are shed light on to ensure that the objectives are reached properly and the top management should provide proper support by outlining the clearly defined goals and finally the implementation should be done by the managers of the organisation (Huczynski, Buchanan and Huczynski 2013).

The framework for the MBO includes the employers, supervisors and even the subordinates to determine the specific goals and strive to achieve in the future. The five major steps include determining and reviewing the organisational goals, which are essential aspect of management and then create planning to proceed on to the next stages, i.e., convey the messages and information about the goals to the employees of the organisation (Sharma 2013). The employees are influenced to determine the objectives and work co-ordinately, monitor the progress and check whether the SMART goals are measurable or not; finally, evaluate the achievements and reward the employees for their contribution to keep them encouraged and motivated within the workplace as well.

Figure 1: Management by Objectives 

(Source: Sharma 2013)

The contingency factors are considered to find out the best and most suitable way of managing issues based on the situation and condition of the organisation and the members associated with the company. The current status of the organisation and its condition including the working conditions are essential factors considered as contingency factors by the managers while planning strategically (Armstrong and Taylor 2014). The design of the organisation is another important contingency factor that must fit the organisational environment while the needs and preferences of the organisation are also needed to be fulfilled with the formation of a proper contingency plan set in the right place.

The environment, i.e., mechanistic vs organic is considered along with the strategies like diversified and undiversified strategies (Jones 2013). The size of business is assessed by comparing the large and small businesses, i.e., bureaucratic vs non-bureaucratic and finally technology that can facilitate the management of people, create good working conditions, strengthen their knowledge and capabilities to contribute successfully to the organisation.

Not only the contingency factors, but also the variables are responsible for influencing the factors to be considered by the managers during strategic planning. The contingency factors are mainly responsible for influencing the planning made at the managerial level of the organisation and this if not managed properly, could result in environmental uncertainty along with reducing the future commitments too (Ahimbisibwe, Cavana and Daellenbach 2015). There are various other contingency factors as well such as the setting of goals that is considered as an essential factor. The approaches followed by the business organisation’s manager to respond to a contingency or emergency situation can reflect the business goals and at the same time, determine the various aspects that are responsible for responding to purchase related offers within a contingency plan.

The Government laws, rules and regulations also create impact on business and the contingency plan is formed in such a way that it comply with the Government laws, rules and policies to deal with the changing rules and regulations (Taylor and Taylor 2014). This should also allow the business to shift its focus on the activities that can draw in more profit in business. The profitability is another major factor that has been considered by the managers during the formation of contingency plan. It is because the managers need to assess and compare the previous year’s profit and the current year’s profit to check whether the expected revenue has been generated or not. The time is another important factor and thus the amount of time spend on the brainstorming the contingencies and develop appropriate actions for dealing with the contingency planning. The managers, when spend lesser time for time planning during the contingencies, then there might be failure at certain situations and this could result in slowing down the operations required to respond to opportunities and threats conveniently (Alexander 2017).

Outside factors play an important role in planning. Consideration of the external pressures is effective in terms of planning the steps rationally. For this, regular communication is needed, which enhances the awareness about the objectives, which would enhance the productivity. Indulging in deals, trades and contracts is effective in terms of strengthening the professional relationship. Along with this, it is also efficient for reducing conflicts, contradicting the aspect of teamwork essential for setting goals and objectives. Within this, offshore management is an innovative aspect for involving the external stakeholders in the planning process. Using social media for this purpose is advantageous in terms of expanding the scope and arena of the business (Haines 2016).

Sustainable development is one of the important goals, which needs to be undertaken. Outside forces like environmental agencies, through the environmental directives influence the business of the companies and organizations. For this, the employees need to be briefed about the judicious use of resources (Fukuda-Parr 2016).

Planning helps the brand personnel in estimating the time till when the activities would be completed. The plans lay the foundation for the goals, which enhances the organizational effectiveness. Different type of planning are strategic plans, tactical plans, operational plans and contingency plans. Strategic plans involve analysis of the competitive opportunities, threats, strengths and weaknesses of the organizations. This analysis helps in estimating the current position in the market (Hill, Jones and Schilling 2014). Moreover, strategic plans assist the personnel in planning innovation for targeting more and more customers. Strategic approach in making the plans assist in developing long term objectives for increasing the sales revenue and the profit margin. The top level managers are involved in making the strategic plans. Farsightedness is an essential trait of the managers while making these plans. Consideration of flexible frameworks yields positive results for the attaining growth and development.

As per the assumptions of Hill, Jones and Schilling (2014), Tactical plans consist of the strategies adopted by the sellers for fulfilling the identified and the specified objectives. The time period for developing these plans is three years, within which the departmental units are to complete the implementation activities. According to Haines (2016), meetings are conducted for briefing the plans regarding resource and task allocation to the employees. Tactical plans form the base for larger strategic plans. Middle level managers are involved in developing tactical plans. At the initial stage, short term goals are developed, which adds focus into the marketing activities. However, Jones (2013), tactics is accounted as one of the essential characteristic traits of the personnel. Exploitative nature while executing the marketing activities contradicts the ethical code of conduct, which the employees are expected to abide by within the workplace.

On the contrary, Oakland, (2014), in the operational plans, the time period is less than a year, which helps in the development of short term goals. Specific actions are planned for regulating the behaviour of the employees. This specificity is further assistance in organizing the operations. It is one of the essential duties of the manager to develop the operational plans. Nagle and Müller (2017) is of the view that team leaders, supervisors and facilitators support the manager in developing the operational plans. Monitoring is one of a vital exercises of this plan. Operational plans can be further divided into standing plans and outgoing plans. The main purpose of standing plans is to cover the issues of policies and practices, which helps in organizing the daily business activities. On the other hand, ongoing plans are developed for exceptional problems, which might take place in the workplace. Replacement of the plans add innovation to the operations. Budgets are one of components, which helps in preparing the operational plans (Welford 2016).

Contingency plans are needed when changes are required in the workplace. According to the business experts, this type of planning is considered as special as the changes cannot be foreseen. Complicated nature of competitive market necessitates the need for understanding contingency planning (Rossiter, Percy and Bergkvist 2018). This understanding is crucial in terms of maintaining the pace with the trends adopted by the contemporary brands to attracting the customers.

Conclusion 

The essay was prepared as a report to focus on the management and organisation of businesses within the global environment and how these were beneficial for dealing with the contingency situations with utmost ease. From the report, it could be understood that the setting of goals according to Miles & Vergen landmark study was aimed at defining the goals based on the SMART criteria. It was the roles and responsibilities of the managers to ensure that the goals and objectives are identified and the information related to those were conveyed properly to the employees for influencing them to commit themselves fully to the achievement of business goals and objectives. The goals were needed to be specific, measurable, achievable, and realistic and must be completed within a proper allocated time frame.

The management by objectives or MBO was introduced by Peter Drucker who formed a systematic method to define the objectives and made sure to monitor and review the progress of tasks at regular intervals to facilitate the management decision making and ensure positive business outcomes. The various stages of MBO included reviewing the organisational goals, setting the objectives, monitor the progress, evaluate the outcomes and finally reward the employees for their commitment to the organisation after accomplishment of tasks. The major contingency factors included organisational design, size of business, time and Government laws, rules and regulations, which should be considered by the managers of organisation to deal with the contingencies.

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