Organizational Goals: Purposes, Types and Features - Principle of Management

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Organizational Goals: Purposes, Types and Features

Organizational Goals:

Goal is the expected outcome from the activities performed in the organization. It is the reason behind existence of the organization. According to A. Etzioni, “Goal may be defined as a desired state of affairs that organizations attempt to realize”, Similarly, according to Koontz and Weihrich “Goals are the ends towards which activity is aimed –they are the result to be achieved.” Thus, goal is a desired end that organization wants to achieve in future by performing several activities.

  • Vision: A general statement of its intended direction that generate strong emotional feelings in organizational members
  • Mission: It states who the company is, what it does, and where it headed.

Purposes of Goals:

The main purposes of achieving goals are as follows:

  1. To provides guideline and direction: Goals is a desired destination that organization wants to reach. Thus, it provides the direction toward which the organizational activities should be focused.
  2. To develop a good planning: Planning is predetermining the activities for future. These activities can only be identified when organization know what it wants to achieve. So goals give idea about the expectation, the time frame, skills necessary etc., which helps to make a effective plan.
  3. To motivate employee: Motivation is creating willingness in individual to give higher effort toward work. This can only be possible when people thing or accept that, their need is fulfilled by their effort. Since goal is a outcome and provides an idea about what people can achieve in   future .It motivates employees towards works.
  4. To utilize the resource optimally: Resource can be optimally utilized only when there is precise definition and direction of work with motivated employees. Since there all are for what the goal is meant for. Thus, goal helps in effective utilization of resources.
  5. To evaluate and control: Evaluation and control of organizational performance is essential to ensure that the organization’s functions are working properly, and people are within the tract (area, band) of budget limit and time schedule. This is only possible, when there is goal to be achieved in future. Thus goal acts as standard which control and direct the actual activities.

Types of goals:

There are different types of goals formulated by an organization to their needs. They are as follows:

1. Level wise goal:

a. Corporate Goals: Corporate goals are broad goals which cover and direct overall activities of an organization. They are always formulating by the top level management. They are represented by mission and strategy.

  1. Mission: Mission is a statement, which describe the vision of top leadership about organization and provides reason for the existence of an organization. E.g. “To be the best school in Kathmandu valley” may be the mission statement of any school situated at Kathmandu.
  2. Strategy (SWOT): It is a long term action plans. It is developed in the view of the mission of an organization .It is a real intension which stated the course of action that is going to be taken by an organization. E.g. to increase the market share by 15% by the end of 3rd year.

b. Tactical Goals: Tactical goals are set to translate the strategic goals into action. They are the target goals of department formulated by department heads or middle level managers. They are generally shorter time framed, more specific and strongly focused. E.g. 20% increase in sales annually.

c. Operational goals: Operational goals are unit/section level goals formulated by lower level managers. They are more defined and time bound that help to achieve the tactical goals. E.g. to produce 100 units of product each day.

2. Time Frame: 5-10 years long term goal, 2-4 Mid-term goals, below 1 or 1 year short term goal.

Features of Effective Organizational Goals:

The features of effective organizational goals are as follows:

  1. Specific: Organizational goals must be precise. It must be clearly defined and should be understood by every concerned people. E.g. 10% profit on sales, but not profit maximization.
  2. Measurable: Every goal should contain details about, how particular aspects of performance will be measured. It should be measurable in terms of quality and quantity. Measurable goals help to assess work-in-progress of individuals and organization.
  3. Acceptable: Goal should be accepted by workers, who are responsible for achieving them. There must be participation and agreement of both higher and lower management in goal setting process.
  4. Realistic: Goal must be realistic enough, that each individual working in an organization should have faith on its achievement. Unachievable or unrealistic goals lead to excess expenses and even collapse of an organization.
  5. Time bound: Goal must be bound by time frame. There must be clear estimation of time period for accomplishment of goals in future. Time bound goals not only help to identify the necessities of promptness but also serve as a standard for the organizational activities.

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