We explain what the objectives of an organization are and how they are classified. How they are established, and some examples.
What are the organizational objectives?
In corporate language, the desired situations that every company seeks to achieve in the different areas that compose it or that are of interest, and that specify the desire contained in its mission and vision through attainable goals , are called organizational objectiveS.
Like any objective , once these goals have been reached, new ones will be chosen and so on, guiding the organization’s progress based on its future projection . It can be said that the objectives are the indicators on the road to be traveled by the company , which also serve to measure its performance: a successful company is expected to meet most of the objectives that have been set.
On the other hand, the objectives of a company provide its legitimacy, since a company that does not achieve its goals will not convince future clients or investors.
The objectives of an organization are determined based on its initial plan or strategic direction , which also includes the response to accidents and unforeseen events arising from the environment in which it operates. The recovery of challenging situations, overcoming unexpected challenges or difficulties born within the market, are only some possibilities of organizational objectives of external origin.
On the contrary, the growth of the payroll of workers , the maximization of the efficiency of the processes , the expansion towards new horizons, are objectives of internal origin.
Types of organizational objectives
The organizational objectives are classified based on their projection over time , that is, in the history of the organization . Thus, there are three different types:
- Long term . Those compliance objectives in a remote time to come. They are also known as strategic objectives, as they guide the medium and short term when defining the future of the company.
- Medium – term . Known as tactical objectives, they are an intermediate instance between the long and short term, serving as an adaptation by areas of the company of the plans necessary to fulfill the general objective.
- Short term . These immediate compliance objectives (in a range of less than one year) are designed to meet specific situations close to time, and are usually broken down by productive unit or even employed. The medium and short-term ones depend on the daily fulfillment of these objectives, within the framework of which they should focus.
How are the organizational objectives established?
To establish the organizational objectives of a company you need a logical methodology that takes into account the following:
- Mission and vision of the company . Everything contained in the mission and vision is key to determine the overall objective of the company, and hence the series of specific objectives that emerge. After all, in them is the mission of the organization.
- Business priorities and their scale . The priority scale of the company must be planned, that is, which are the urgent tasks and which are not, which are the most important and the superfluous. Only in this way can accurate and applicable objectives be achieved.
- The identification of business standards . It is necessary to define the cost, feasibility and time of each objective, according to the capabilities and convenience of the company, since these measures will serve as control and comptroller for the fulfillment of the goals and their eventual modification or adaptation.
Examples of organizational objectives
Some possible examples of organizational objectives may be:
- Maximize annual earnings .
- Grow up to double the payroll.
- Expand to a new market.
- Recover the lost capital during a crisis.
- Minimize investment risks.
- Increase market share.
- Reach projected earnings.
- Survive the depression of the commercial sector.