Organisational goals and objectives

Central University of Rajasthan
Dept of Commerce
Narendra kumar
3rd Batch 2014-2016

1. ORGANISATIONAL GOALS AND OBJECTIVES Presented by Narendra kumar Central University of Raj Dept - Commerce 3 rd batch 2014-2016 Mcom-4 th sem

2. Organisational Goals Goals is defined as an “intermediate result to be achieved by a certain time as part of the grand plan. A plan can, there for have many goals. Goals are predetermined and describe future results toward which present efforts are directed.

3. Cont... Goals are short term (one year or less) milestones or bench mark that organisations must achieve in order for long term objectives to be reached. Goals should be measurable, quantitative, challenging, realistic, consistent and prioritized.

4. Types Official goals:-   are the general aims of an organization as expressed in the corporate charter, annual reports, public statements and mission statements. Their purpose is to give the organization a favourable public image, provide legitimacy, and justify its activities. Operative goals:-  reflect the actual intention of an organization. They describe the concrete steps to be taken to achieve the organization's purpose. They often don't correspond with official goals.

5. Benefits Physical and financial resources . Renovating and maintaining equipment is important in the long run for an organization. Increasing cash flow is often important for new ventures. Profitability . This is usually expressed as a percentage and should always be stated. Management performance and development . Management training is important because management is key to organization success. For example, GE has a special course in Crotonville for up and coming young managers, and IBM spends 15 days per year training management in better management practices. This is often a neglected aspect in many organizations.

6. Cont... Employees performance and attitude goals . Employees are the most important asset in any organization, although many organizations don't act as if they believe this. Social responsibility . More and more organizations see this as somewhat important to gain legitimacy on the public's eye. These days one is witness to organizations providing matching funds for fundraising efforts and giving their employees a certain number of paid hours time off to volunteer in community activities.

7. Organisation Objectives “ Objectives are the end results of planned activity”. Organizational objectives  are short-term and medium-term goals that an organization seeks to accomplish. An organization's objectives will play a large part in developing organizational polices and determining the allocation of organizational resources. Achievement of objectives helps an organization reach its overall strategic goals.

8. Cont... Objectives represent a managerial commitment to achieve specified results in a specified period, of time. They clearly spell out the quantity and quality of performance to be achieved ,the time period, the process and the person who is responsible for the achievement of the objectives.

9. The Importance Of Objectives Determine strategy Provide a guide to action Provide a sense of direction and units Coordinate activities Facilitate prioritization and resolve conflicts between departments. Measure and control performance Encourage a concentration of long – term factors Motivate employees Provide a basis for decision making. Provide shareholders with a clear idea of the business in which they have invested.

10. The Nature of Objectives Objectives are the goals of the business. They represent the outcomes or targets that the business wants to gain in order to achieve its aims. The objectives of a business are derived from its aims. Well defined objectives are important. They will help the business to be clear about what it wants to achieve. The performance of a business could be assessed by how effectively it achieves its objectives.

11. Characteristics of SMART Business Objectives Specific stating exactly what it is trying to achieve . Measurable able to be measured to decide if they have been achieved . Agreed have the approval and understanding of everyone involved . Realistic able to be achieved by the business taking into account its resources, competition, market, etc. Time Specific state a time by which they should be achieved .

12. Areas of objectives Markets Productivity Innovation Product Profitability Financial resources Customer services Social responsibility Physical facilities Organisation structure and activities Employee performance and attitude

13. Types Of Objectives Short term vs Long term Tactical (Operational) Strategic Ethical CSR

14. Short V/S Long Term SHORT TERM:- Short-term objectives represent the goals an organization sets that are centered on tasks that can be achieved within the next six months or, at the outset, within one year . An example of a short-term goal might be to increase sales by 10 percent. This is an easily measurable goal and employees can be held directly accountable for ensuring that it is met.

15. Long Term Long-term objectives define any goal that has a time frame exceeding one year. Business goals that are normally considered long term include developing a new product, growing annual revenue and developing a comprehensive marketing and public relations strategy. Importantly, long-term goals must not go on forever. While they take more time than short-term objectives, long-term goals must be realistic and time bound .

16. Tactical (Operational) Short term objectives that are mainly departmentalized More sales; lower costs etc Survival – especially in tough economic times For example, a company may have a corporate objective of becoming a global operator in ten years, getting established in Europe within one year may be a tactical objective

17. Strategic Objectives Long term plans that usually affect the entire business Growth Image and reputation Market share In reality, businesses may have several strategic objectives taking place during the same time

18. Ethical Objectives Ethics are the moral principles that guide decision-making and strategy An ethical business is likely to treat its workers, customers, shareholders and the environment in a responsible manner

19. Difference b/w goal and objectives Basic Goal Objectives 1.Meaning The purpose toward which an endeavor is directed. Something that one's efforts or actions are intended to attain or accomplish; purpose; target. 2.Example I want to achieve success in the field of genetic research and do what no one has ever done. I want to complete this thesis on genetic research by the end of this month.

20. Cont... Basic Goal Objectives 3.Action Generic action, or better still, an outcome towards which we strive. Specific action - the objective supports attainment of the associated goal. 4.Measure Goals may not be strictly measurable or tangible Must be measurable and tangible.