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
3rd batch 2014-2016
Mcom-4th 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
1. Markets
2. Productivity
3. Innovation
4. Product
5. Profitability
6. Financial resources
7. Customer services
8. Social responsibility
9. Physical facilities
10. Organisation structure and activities
11. 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.Measur
e
Goals may not be
strictly measurable
or tangible
Must be measurable and
tangible.