Approaches for Goal Formulation:

Goal formulation is often referred to as strategic planning or long- range

planning. This process is primarily analytical, not action- oriented. The goal

formulation process is concerned with developing organizations vision,

mission, goals, objectives and policy. It involves scanning external and

internal environmental factors, analysis of the strategic factors and

generation, evaluation and selection of the best alternative strategy

appropriate to the analysis.

The approaches used for formulation of goals are as:

1. Top-Down Approach:

In the top-down approach to goal formulation, top level managers

determined goals for an organization; set strategy, tactical and

operational goals of the organization. This approach takes an

assumption that top level management knows what is best-fit for the

organization as they can only see the big picture of the goal of

organization. The term executive may take suggestion and technical

guidance from expert and professional but they take final decision

themselves. Top level managers gather knowledge, analyze it, and

draw actionable conclusions. They then develop processes that are

communicated to and implemented by the rest of the team. The goals

are filter down and flown through a hierarchical structure.

Approaches to

Goal

Formulation

Top-Down

Approach

Bottom-Up

Approach

Management By

Objectives

Approaches for Goal formulation of organisation

Bachelors of Business Administration (BBA101)