Page 44 - PRAGMATIC STRATEGY

Objectives which are neither economic nor relate to efficiency such as
providing employment far family members, keeping family control for
status and other reasons.

4-2-2 Professional Management/Employees.

Galbraith has argued that in the US the Chief Executives of major firms
follow policies which safeguard their own positions. Employees at all
levels may be expected to attempt to follow strategies which are at
least in part are more in their own intents rather than that of the
other stakeholders whether owners or customers.

4-3 Social Objectives.

Many enterprises in a capitalist, mixed or socialist economy have been
established with clear social objectives in mind (hospital/ prison and schools). The
beneficiaries are perceived to be some or all members of the Community. State
or privately owned may have similar aims or constraints.

For a nationalised railway this may be employment, provision of uneconomic
services, purchase of local rather than cheaper equivalent equipment from
abroad. A private firm may for reasons of political prudence or enlightened self
interest follow similar social aims.

4-4 Survival. The underlying objective of the majority of enterprises, but in times
of extreme crisis it becomes the main aim and strategy. Too many firms exist
Permanently in a state of day to day crisis without an attempt to consider more
longer term aims. For a period, an enterprise's management may have to forget
all future plans and concentrate their whole effort to keeping the firm alive. As
soon as the situation improves more positive objective and strategy is required.

5 Choice of Objectives

Will depend on the nature of the enterprise, the local norms, the beneficiaries,
etc. Here are several points which may be helpful to the Chief Executive and his
group for whom objective setting is a prime responsibility not to be delegated.