At expansion of a common goal in hierarchical structure of the purposes recognizing that realization of local goals of each subsequent level is a necessary and sufficient condition of achievement of the purpose of the previous level.
Each organization fixes the state in the future in the form of long-term and short-term objectives which serve as a starting point of planning. Division is more whole on the long-term and short-term has basic value. Short-term objectives are more concrete and are defined by long-term goals. Management of the organization for the purposes is carried out in some stages.
Essence of the concept – the complete control system focused on the end results and based on use of creative capacity of labor collective, new methods and technology of management.
Carrying out all listed types of works, managers create necessary prerequisites for productive and effective work of all staff of the enterprise and all its subsystems. Therefore quite often they are called the people able to achieve goals, using work, intelligence, and motives of behavior of other people. Also it is one of the reasons of that great demands are made of their professionalism and personal qualities.
Check of terms and correction of the plans of action. After discussion with the subordinated and other heads often it is necessary to correct the plan of action to make it more realistic. The date of restriction of works can be postponed, resources are increased or reduced, schedules of tasks are revised, etc.
The purposes are corrected after identification of extent of progress in realization of goals, i.e. taking into account achievement of the objectives the purposes chosen earlier are corrected. Practically it means the termination of a cycle of formation of the purposes.
Key results can be three types: on commercial activity (a turn, a covering of costs, variables and constant expenses, a share on sales markets, profitability, solvency, capital utilization, etc.); on functional activity of divisions (quantity and quality of the made production, use of capacity, raw materials, materials, energy etc.); on not the commercial activity promoting achievement of the direct functional purposes (overall performance of the personnel, motivation working, the atmosphere in the organizations, use of working hours, cooperation with other organizations, image of the enterprise, the creative beginning, experience).
Advance planning – the extremely important stage of successful work of firm first of all because it is carried out in the conditions of insufficient information. For this reason the great value gets opinion of board of directors, professionals of the top management of management. The knowledge of situations and opinion of competent people concerning these situations are necessary for definition of long-term goals. At this stage the developed meeting on problems of long-term planning at which strategy of firm in all its directions has to be developed is necessary. Practice shows that strategy of firm is not developed in one day, the head solves these problems step by step.
Despite support, many critics are also available for the UPTs method many cases when the UPTs programs failed. One of the reasons of failures – too great attention to participation of workers directed by the purposes. Researches showed that attraction to participation in statement of the purposes strengthens motivation of some individuals and increases their productivity. However other researches specify on that in some situations such participation not always pertinently and not always really conducts to increase of productivity.
The essence of performance of this stage is that the purposes have to be formulated at each level of management, first of all across. Proceeding from togas that all real organizations multi-purpose, at this stage at each level of management have to be formulated all purposes of the chosen strategy. On the other hand, main goals have to be chosen,
Development - at management is by results supposed improvement of structure of all organization, education of professionally prepared heads. Development acts as process of changes which can be operated according to the general principles of development of the organization.