State any four problems of goal formulation/ Explain various problems of goal formulation./ Explain the problems encountered in goal formulation process

 PROBLEMS OF GOAL FORMULATION

Goal formulation is an important but complex phenomenon. The decision maker should have proper knowledge regarding methods, techniques, principles, and approaches of goals formation to make the goals effective. In real practice, managers may face several problems while setting goals. Some of the major problems of goal formulation are explained as follows:

• Unattainable goals
• Inappropriate goals
• Lack of intellectual capacity
• Resource constraints
• Over emphasis
• Problems of noal formulation
• Environmental uncertainties
• Reluctant to change
• Inappropriate reward system
• Others

1. Inappropriate goals: The goals which are not feasible to attain or not suitable to the organization are inappropriate goals. They may not be feasible due to the internal factors of the organizations such as financial condition, size, market share and more. Goals are also inappropriate if they place too much emphasis on either quantitative or qualitative exis measures of success at the expense of each other. For example, if profit goal is overly emphasized, it may hinder market leadership goal of the organization.

2. Improper reward system: The improper reward system is also a major barrier to goal formulation. Rewarding for poor goal-formulating behavior or not rewarding or punishing for proper goal formulation behavior has a negative effect on the people involved in goal setting. If an organization puts too much emphasis on rewarding for short-term results, the employees may ignore longer-term issues as they prefer to set goals for short-term for higher gain. Both of the above situations are the problems of goal formulation.

3. Dynamic and complex environment: If the organization is operating in a dynamic and complex environment, it also remains as a barrier to effective goal formulation. Rapid changes in the economic and political situation, the market conditions, technological innovation, and intense competition lead to a complex organizational environment in which it is very difficult to forecast the future conditions and set organizational goals.

4. Reluctance to establish goals: Some managers are reluctant to establish goals for themselves. This may be due to lack of confidence, fear of failure, lack of skill, lack of personal interest or lack of responsibility. Managers who are consciously or unconsciously reluctant to establish specific, achievable and time bound goals are likely to damage the organization's goal formulation efforts.

5. Resistance to change: Resistance to change is a major problem for goal formulation. Goal formulation involves changes within the organization which is essential to address the environmental dynamism. If managers perceive the change as a threat to them, they may resist it. In such a situation, they are not likely to formulate proper organizational goals.

6. Other barriers: There are some other external factors which act as problem in goal formulation. They are lack of resources, government restrictions, strong competition, political-legal situation, and economic conditions.

 

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1. Unattainable goals: A common problem of goal formulation is established unattainable Unattainable goals decrease morality of member. Organizations try to formulate challenging goals to motivate employees. But challenging goals can be ideal and unattainable. Impossible goals create problems in organization. So, setting challenging but realistic and attainable goals is one of the major problems in goal formulation process. goals

2. Inappropriate goals: Unattainable goals are inappropriate goals. Over ambitious goals inappropriate because of low chances of attaining them. Over emphasis on quality as well as quantity in goals make the goals inappropriate. If the overall goals are inappropriate, policies and strategies to attain such goals also become inappropriate and hence goals of different units, department, and branches become inappropriate. Departmental and unit goals should focus the mission goals of organization. Formulation of departmental and unit goals becomes difficult if the overall goals are inappropriate. are

3. Lack of intellectual capacity: Goal formulation process is highly affected by intellectual capacity of individuals associated in this process. They should have sharp knowledge of PEST and SWOT analysis. They should be qualified in terms of statistical and mathematical tools and techniques Accounting and financial knowledge are essential for goal formulation. In lack of such knowledge, decision makers set the goals at hunch. Goals formulated by such individuals become inappropriate and vague.

4. Resource constraints: Lack of resources becomes problem for goal formulation. Lack of resources decreases the confidence level at attaining the goal. Thus, decision makers formulate the goals under constraints or limitations. Goals in such situations cannot be challenging and optimistic Thus, resource limitation creates problem in goal formulation.

5. Over emphasis: Management gives over emphasis on either quantitative part or on qualitative part. In some cases, decision makers must require to develop the quantitative standards like minimum number of unit production or quota for each employee. But it is required to remember that everything cannot be measured in quantity. Similarly, quality of goal should be clear and measureable. Vague and ambitious goal discourages employees.

6. Environmental uncertainties: Environmental changes are also major barriers in goal

formulation process. Assessment of external environmental factor is complex and difficult. Rapid change on technology, high competition, uncertainty in political-legal environment, etc. cannot easily be estimated. Change in such factors change opportunity and threats of business organization. Thus, more volatile business environment also creates problem in goal formulation.

7.Reluctant to change: Rejecting change is very common attitude of human being. Managers and operating level employees may not easily accept the change in responsibility and technology intended by top level management. This creates challenge in goal setting as well as goal attainment. 

8. Inappropriate reward system: There must be appropriate reward for employees on the basis of quality of goals. If organization follows inconsistent and inappropriate reward systems, it dissatisfies employees with best goals. Reward system should be transparent and should be based on performance level. Thus, reward system failing to reward the successful achiever of goal creates problem in goal formulation.

9.Others: There can be other problems in goal formulation, improper communication systems, lack of employee participation, focus on short term goals, lack of change management, reluctance to set goal and time constraints etc.