Bigger size makes that objective formulation process complex.
Organizational objectives are set by managers. Different levels of managers set different kinds of objectives.
Culture is a system of shared set of values,beliefs and norms that guide behavior.
Organization culture is indicated by autonomy,mutuality of interests,climate of trust,feeling of belongings,team work,open communication,collaboration,performance based reward system risk taking and human focus.
Objective formulation is affected by organizational culture.
External environment forces affect objective formulation. They ca be:Political, such as government policies and regulation,lows. Economics,such as competition in the market place an economics polices Social-cultural, such as population forces and social cultural values. Technological,such as level of technology0gy and speed of technical change. Internal environmental forces that affect objective formulation are resources availability,competency and power relationship within the organization.
The objective formulation process is very much affective by situational variable.
Objectives deffer according to situation. Situation keep on changing. So do objectives. Past situation of the organization serve as precedent for objective formulation.
There have been numerous papers written on the subject of firm specific resources and their link to sustainable competitive advantage for a firm. I will start by explaining some key terms that will be used in the analyses of firm-specific resources. I will then outline the internal factors, and their effect on an organisations performance. Finally I will focus on the resource-based view of the firm in order to critically evaluate the role of firm specific resources. Strategy Formulation Strategy formulation is a process in which an organisation must;
Internal Factors : Corporate Governance Internally, an organisation consists of Top Management and a Board of Directors who act as internal mechanisms.
Top management’s responsibilities are to provide executive leadership and vision and manage the strategic planning process. The Board of Directors on the other hand must monitor top management, evaluate them, and formulate strategy. Every board of directors has five responsibilities;