Goals of organization

From CEOpedia | Management online

The goal is defined objectively and subjectively as the future, desired state or result of the organization's operation, possible and foreseen to be achieved, within a period within the time interval covered by the short-term or multi-year action plan.

A goal is a formal, planned and anticipated project resulting from the own needs of the system (company) and the environment in which it operates. Goals can be formulated in a way (maintaining a specific state) or functional (running a business).

The goal is the state of things that the perpetrator seeks. A special case of purpose is the task; it is a goal accepted with the knowledge that it has been 'asked', or set by someone else. The task of a given action is its direct result (work), and the purpose is why this result is to be used.

Tasks and mission of the organization

The organization is a whole made up of various material resources (financial, material, human) and intangible (market, intellectual, relational, organizational, cultural). Organization in the sense of matter is an organized thing, that is, a team of people connected by a common goal of action, considered together with the resources they need to act.

The modern concept of goals is associated with synonymous terms: tasks and the mission of the organization.

  • Task - it is a spatially identified, objectively, subjectively and temporally part of the target planned for execution within a set time frame within the time interval provided for achieving the goal.
  • Mission - is an expression of far-reaching goals and the aspirations of the organization.

Each organization strives to achieve at the same time many goals that create the so-called a bunch of goals. The size of the target beam, its composition and structure are dependent on many factors, but mainly on the subject of the organization's activity, ie the mission which a specific category of organization has to meet towards participants and the environment.

Formulating goals for the organization brings many benefits. These goals are mainly the source of information on whether the actions are being taken in the right direction. They are the basis for evaluation and control of activities, as well as stimulate the motivation to take action. As a result of observation and research of properly functioning organizations, it was found that regardless of the type and specificity, some of the objectives are repeated. These are systemic goals that affect the organization's ability to operate in a harmonized and coordinated manner. The following are most often presented for this kind of purposes: adjustment and renewal, cooperation, identification and integration.

Types of goals

The goal is the result of the aspirations to which it is achieved, the desired future state of affairs that the company would like to achieve.

In the organization, we distinguish the following goals:

  • economical - they are related to the organization's activity on the market, the economic sphere of the organization's operation as well as the creditworthiness.
  • non-economic - social Social goals define conditions and labor relations within the organization, present the desired level of satisfaction of psychosocial needs of employees, social and living needs, as well as socio-political needs related to participation in the exercise of authority in the organization. In this group, you can separate goals related to the organization's impact on the region, in the area of socio-economic activation, municipal economy and environmental protection.
  • production and marketing goals are formulated in terms of value and material, intended to achieve the sales volume, specific services and goods that find social approval in the process of their purchase by recipients in specific markets.

If the organization is to maintain social and economic balance, it must keep in mind that economic, social and production-marketing goals should be implemented in parallel to a certain extent. If the balance resulting from the external and internal conditions of the organization's functioning would be disturbed, a periodic hierarchy of goals should be established to help restore the balance.

Due to the organizational levels, we can distinguish:

  • strategic goal - it is set at the highest organizational level and it is as part of the organizational strategy
  • tactical purpose - it is set at the medium organizational level, which focuses on the way of operationalization of activities that are necessary to achieve strategic goals
  • operational goal - set at the lowest organizational level.

The goal can be internal or external:

  • internal - achieving a synergistic effect
  • external - meeting the needs of the environment

In addition to the above-mentioned goals, the company:

  • strives to acquire new customers and maintain old ones
  • strives to acquire new markets and segments
  • aims to create favorable conditions for its employees

Autonomisation of goals

The phenomenon of detachment of organization's goals from the original function is defined as the autonomy of goals that, from the point of view of the organization itself, strive to protect their own interests. The autonomy of goals allows the organization to adapt to the environment in cases of extreme threats to its existence, increases the flexibility to adapt the organization to the environment, which is beneficial from the social point of view.

Only such an organization that knows how to discover and pursue its own goals will be able to fulfill its external functions well and pursue a social interest in the conditions of a democratic market economy state.

Examples of Goals of organization

  • Increase customer satisfaction by 20%
  • Improve employee engagement by 10%
  • Increase profitability by 25%
  • Increase market share by 5%
  • Increase revenue by 10%
  • Reduce operating costs by 5%
  • Reduce product defects by 15%
  • Improve employee retention by 5%
  • Increase brand recognition by 10%
  • Increase brand loyalty by 5%
  • Increase customer loyalty by 10%
  • Develop a new product in 6 months
  • Expand into a new market in 1 year
  • Increase web traffic by 10%
  • Gather 500 new customer email addresses in 3 months

Advantages of Goals of organization

A well-defined goal can provide several advantages to an organization. These include:

  • Clarity and focus: A goal provides a clear direction and purpose to help an organization stay on track and achieve its desired outcomes.
  • Motivation: A goal can help motivate employees by providing a clear end goal to strive towards.
  • Efficiency: Goals provide guidance and structure to an organization's activities and processes, helping to increase efficiency and performance.
  • Accountability: When goals are set, it is easier to measure performance and hold individuals and teams accountable for their actions.
  • Collaboration: Goals provide a platform for teams to work together to achieve a common goal.
  • Innovation: Goals can encourage innovation and creativity by challenging teams and individuals to come up with new ideas and solutions.

Limitations of Goals of organization

  • Limited resources: Organizations may not have access to all the resources they need to achieve their goals, such as money, labor, or materials.
  • Time constraints: Organizations may not have enough time to achieve their goals due to external factors such as economic downturns, competition, or political unrest.
  • Unclear objectives: Goals may not be clearly defined or understood, making it difficult for organizations to measure progress and make adjustments as needed.
  • Lack of communication: Poor communication between stakeholders can lead to confusion and lack of agreement on the organization's goals, hindering progress.
  • Poor planning: Poorly planned goals can lead to inefficiency, confusion, and wasted resources.
  • Unforeseen events: Unexpected events or changes in the environment can derail plans and hinder progress.

Other approaches related to Goals of organization

  • Vision: A vision is a thought or an idea of what the organization wants to become in the distant future. It is often used as a guiding principle to direct the organization’s strategy and operations.
  • Mission: A mission is the purpose of an organization, and outlines the organization’s values, goals, and strategies. It is used to inform the organization’s stakeholders and employees of the organization’s objectives.
  • Objectives: Objectives are specific goals that an organization works to achieve. They are measurable and time-bound, and provide the organization with a roadmap for success.
  • Strategies: Strategies are plans of action that an organization uses to achieve its objectives. They provide guidance on how to achieve the organization’s goals, and can range from general plans to specific tactics.
  • Goals: Goals are the desired outcomes that an organization works to achieve. They can be long-term or short-term, but they should be measurable and time-bound.

In summary, the goals of an organization can be defined by its vision, mission, objectives, strategies, and goals. Each of these elements should be used to guide the organization’s operations and achieve its desired outcomes.


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