"Ask any two managers precisely what they mean by 'staff', or 'decentralization,' or 'budget.' The differences in interpretation will make communicat… - Louis A. Allen

Objectives are goals established to guide the efforts of the company and each of its components. Effective management is always management by objectives. An organization can grow and change in an orderly and progressive manner only if well-defined goals have been established to guide its progress. Not only must there be an objective for the total organization, but, since each component can accomplish only limited work, there should be spelled out division and departmental goals which serve as specific guides for subordinate units. These enable individual managers to operate with maximum freedom but always within the framework of over-all company objectives. Unless such goals are established, there is likely to be haphazard activity, uneconomical commitment of capital funds, poor utilization of people, and mediocre operating results over the long term.

Almost any business manager will affirm that sound organization is highly important to business success. Many will characterize organization as the foundation upon which the whole structure of management is built. Unfortunately, there are many differences of opinion as to the precise nature of organization, as of other aspects of management; and there is even less concurrence on what specific work must be accomplished in organizing.

Far-reaching changes have been taking place in the economy over the past twenty years. Growth and diversification mark the long-term character of the business climate. Technological improvements have been occurring with startling rapidity. New materials, new products and processes present a host of challenging opportunities to the individuals and the firms ready to exploit them. At the same time, however, short-ages in skilled manpower are prevalent, the costs of doing business have increased sharply, and there is keen competition in every aspect of enterprise.