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International Case Developing Veriable Goals The division manager had recently heard a lecture on management by objectives. His enthusiasm, kindled at that time, grew the

International Case Developing Veriable Goals The division manager had recently heard a lecture on management by objectives. His enthusiasm, kindled at that time, grew the more he thought about it. He finally decided to ntroduce the concept and see what headway he could make at his next staff meeting He recounted the theoretical developments in this technique, cited the advantages to the division of ts application, and asked his subordinates to think about adopting i. t was not as easy as everyone had thought. At the next meting, several questions were raised."Do you have division goals assigned by the president to you for next year? the finance manager wanted to know No, I do not, the division manager replied. T have been watting for the president's offic to tellme whatis expected, but they act asif they will do nothing about the matterihat s the division to do then?" the manager of production asked, rather hoping that no action would be indicated 1 ntend to list my expectations for the division," the division manager said. "There is not much mystery about them. expect $30 milion in sales; a profit on sales before taxes of 8 percent, a return myslery a on investment of 15 percent, an ongoing program in effect by June 30, with specific characteristics I wll ast later, to develop our own future managers, the completion of development work on our XZ model by the end of the year, and stabilization of employee turnover at 5 percent. The saff was stunned that their superior had thought through to these verifiable objectives and stated them with such clarity and assurance. They were also surprised about his sincerity in wanting to achieve them During the next month, I want each of you to translate these objectives into verifiable goals for your own functions. Naturally, they will be different for finance, marketing, production, engineering, ard dministration. However you state them, I will expect them to add up to the realization of the division goals Questions 1. Canadvision manager develop verifiable goals, r objectives, when these have not been assigned to him or her by the president? How? What kind of information or help do you believe is important for the division manager to have from headquarters? 2 Did the division manager set the goals in the best way? What would you have done?

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