{"id":3038,"date":"2023-02-19T16:11:21","date_gmt":"2023-02-19T16:11:21","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/reading-controlling\/"},"modified":"2023-09-15T17:15:26","modified_gmt":"2023-09-15T17:15:26","slug":"reading-controlling","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/reading-controlling\/","title":{"raw":"Learn It 9.5.2: Controlling","rendered":"Learn It 9.5.2: Controlling"},"content":{"raw":"<h2><strong>Setting Standards and Objectives<\/strong><\/h2>\r\nOrganizational standards and objectives are important elements in any plan, because they guide managerial decision making. Performance standards and objectives may be stated in monetary terms\u2014such as revenue, costs, or profits\u2014but they may also be set in other terms, such as units produced, number of defective products, levels of quality, or degree of customer satisfaction.\r\n\r\nPeter Drucker suggests that operational objectives should be <strong>SMART<\/strong>, which means\u00a0specific, measurable, achievable, realistic, and time constrained.\u00a0An operational objective should be:\r\n<ul>\r\n \t<li><strong>Specific. <\/strong>Focused, well defined, and clear enough that employees know what is expected. A specific objective should identify the expected actions and outcomes. This helps employees stay on track and work toward appropriate goals.<\/li>\r\n \t<li><strong>Measurable\u00a0<\/strong>and quantifiable so people can assess whether it has been met or not. For example, \u201cincrease annual sales revenue by 10 percent\u201d is a measurable objective.<\/li>\r\n \t<li><strong>Achievable.<\/strong> It\u2019s important for all the stakeholders\u2014especially the employees doing the work\u2014to agree that the objective can be met. Unachievable objectives can be damaging to employee trust and morale.<\/li>\r\n \t<li><strong>Realistic<\/strong>\u00a0as well as ambitious. It should take into account the available resources and time.<\/li>\r\n \t<li><strong>Time constrained<\/strong>. Having a deadline can help increase productivity and prevent the work from dragging on.<\/li>\r\n<\/ul>\r\nIt\u2019s important to get employee input during the process of developing operational objectives, as it may be challenging for employees to understand or accept them after they\u2019re set. After determining appropriate operational objectives for each department, plans can be made to achieve them.\r\n\r\n<section class=\"textbox example\">[videopicker divId=\"tnh-video-picker\" title=\"SMART Goals for Work, School, and Well Being\" label=\"Select Video\"]\r\n[videooption displayName=\"SMART Goals for Career Planning\" value=\"https:\/\/www.youtube.com\/watch?v=MWw_eFSusAU\"][videooption displayName=\"SMART Goals for School\" value=\"https:\/\/www.youtube.com\/watch?v=T822-hbcOuk\"] [videooption displayName=\"SMART Goals for Fitness\" value=\"https:\/\/www.youtube.com\/watch?v=R5qHMqJRzV0\"]\r\n[\/videopicker]<\/section>You can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/UtilizingSMARTGoalsforCareerPlanning.html\" target=\"_blank\" rel=\"noopener\">transcript for \u201cUtilizing SMART Goals for Career Planning\u201d here (opens in new window).<\/a>\r\nYou can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/SettingS.M.A.R.T.Goals.html\" target=\"_blank\" rel=\"noopener\">transcript for \u201cSetting S.M.A.R.T. Goals\u201d here (opens in new window).<\/a>\r\nYou can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/S.M.A.R.T.GOALSWellnessWednesdayFeb.10.html\" target=\"_blank\" rel=\"noopener\">transcript for \u201cS.M.A.R.T. GOALS - Wellness Wednesday, Feb. 10\u201d here (opens in new window).<\/a>\r\n\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"350\"]6428[\/ohm2_question]<\/section>","rendered":"<h2><strong>Setting Standards and Objectives<\/strong><\/h2>\n<p>Organizational standards and objectives are important elements in any plan, because they guide managerial decision making. Performance standards and objectives may be stated in monetary terms\u2014such as revenue, costs, or profits\u2014but they may also be set in other terms, such as units produced, number of defective products, levels of quality, or degree of customer satisfaction.<\/p>\n<p>Peter Drucker suggests that operational objectives should be <strong>SMART<\/strong>, which means\u00a0specific, measurable, achievable, realistic, and time constrained.\u00a0An operational objective should be:<\/p>\n<ul>\n<li><strong>Specific. <\/strong>Focused, well defined, and clear enough that employees know what is expected. A specific objective should identify the expected actions and outcomes. This helps employees stay on track and work toward appropriate goals.<\/li>\n<li><strong>Measurable\u00a0<\/strong>and quantifiable so people can assess whether it has been met or not. For example, \u201cincrease annual sales revenue by 10 percent\u201d is a measurable objective.<\/li>\n<li><strong>Achievable.<\/strong> It\u2019s important for all the stakeholders\u2014especially the employees doing the work\u2014to agree that the objective can be met. Unachievable objectives can be damaging to employee trust and morale.<\/li>\n<li><strong>Realistic<\/strong>\u00a0as well as ambitious. It should take into account the available resources and time.<\/li>\n<li><strong>Time constrained<\/strong>. Having a deadline can help increase productivity and prevent the work from dragging on.<\/li>\n<\/ul>\n<p>It\u2019s important to get employee input during the process of developing operational objectives, as it may be challenging for employees to understand or accept them after they\u2019re set. After determining appropriate operational objectives for each department, plans can be made to achieve them.<\/p>\n<section class=\"textbox example\">\n<div id=\"tnh-video-picker\" class=\"videoPicker\">\n<h3>SMART Goals for Work, School, and Well Being<\/h3>\n<form><label>Select Video:<\/label><select name=\"video\"><option value=\"https:\/\/www.youtube.com\/embed\/MWw_eFSusAU\">SMART Goals for Career Planning<\/option><option value=\"https:\/\/www.youtube.com\/embed\/T822-hbcOuk\">SMART Goals for School<\/option><option value=\"https:\/\/www.youtube.com\/embed\/R5qHMqJRzV0\">SMART Goals for Fitness<\/option><\/select><\/form>\n<div class=\"videoContainer\"><iframe src=\"https:\/\/www.youtube.com\/embed\/MWw_eFSusAU\" allowfullscreen><\/iframe><\/div>\n<\/section>\n<p>You can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/UtilizingSMARTGoalsforCareerPlanning.html\" target=\"_blank\" rel=\"noopener\">transcript for \u201cUtilizing SMART Goals for Career Planning\u201d here (opens in new window).<\/a><br \/>\nYou can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/SettingS.M.A.R.T.Goals.html\" target=\"_blank\" rel=\"noopener\">transcript for \u201cSetting S.M.A.R.T. Goals\u201d here (opens in new window).<\/a><br \/>\nYou can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/S.M.A.R.T.GOALSWellnessWednesdayFeb.10.html\" target=\"_blank\" rel=\"noopener\">transcript for \u201cS.M.A.R.T. GOALS &#8211; Wellness Wednesday, Feb. 10\u201d here (opens in new window).<\/a><\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm6428\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=6428&theme=lumen&iframe_resize_id=ohm6428&source=tnh&show_question_numbers\" width=\"100%\" height=\"350\"><\/iframe><\/section>\n","protected":false},"author":21,"menu_order":27,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Revision and adaptation\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Controlling Activities from Boundless Business\",\"author\":\"\",\"organization\":\"Boundless\",\"url\":\"https:\/\/courses.lumenlearning.com\/boundless-business\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Control Process from Boundless Management\",\"author\":\"\",\"organization\":\"Boundless\",\"url\":\"https:\/\/courses.lumenlearning.com\/boundless-management\/\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Utilizing SMART Goals for Career Planning\",\"author\":\"\",\"organization\":\"JobSearcher\",\"url\":\"https:\/\/www.youtube.com\/watch?v=MWw_eFSusAU\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"},{\"type\":\"copyrighted_video\",\"description\":\"Setting S.M.A.R.T. 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