Classification of goals and functions

Classification of goals and function makes distinction between two category of terms, which are often used interchangeably by managers. Goal refers to formally established and expected state of future, which results from decisions of management and actions of employees. Goals often corresponds to needs of company owners, managers and broad socio-economic environment in which the company operates. Function on the other hand specifies concrete action of people in organization, which is undertaken in order to achieve some formal or informal goals.

Types of goals

Fig.1. Classification of goals or functions

Goals or objectives of the organization usually mean a particular state, situational or behaviour requirements for anticipated action (project, task). Due to the importance of the goals there are:

• main and subordinate goals,
• operational, tactical and strategic goals.

Due to the horizontal and vertical fragmentation of the system there are:

• one level goals - for one level of organizational structure,
• overall goal and specific objectives - set for specific time horizon and for the whole company,
• sub-goals - associated with different organizational units at different levels, from strategic to operational level.

Types of functions

In organization function should be distinguished from other meaning i.e. function of an technological object (for example: function of car is transportation of people or cargo).

In this context function is concrete action undertaken to achieve previously set goal, also function is regarded as a structural property of organizational system. Functions are all activities that involve using various resources (material, financial, etc.), in order to achieve established goal.

Correctness of the classification of goals and functions requires evaluation of:

• completeness - striving to make sure that there are no missing goals and functions,
• separation - avoiding situation of duplication of goals and functions,
• complementarity and consistency of classification - to avoid different terms having the same meaning.

Examples of Classification of goals and functions

1. Financial Goals: The primary financial goals of a company are to maximize profits, increase revenues, and reduce costs. This is done by setting short-term and long-term goals that involve strategies such as pricing strategies, cost-cutting measures, and product innovation.
2. Marketing Functions: The marketing functions of a company are to promote and market its products and services. This involves activities such as advertising campaigns, public relations, market research, and product launches.
3. Organizational Goals: The organizational goals of an organization are to create a positive organizational culture, promote employee engagement, and foster innovation. This is done through goal setting, performance management, and development of organizational processes.
4. Operational Functions: The operational functions of a company are to manage the day-to-day operations of the business. This involves activities such as inventory management, supply chain management, and customer service.

Advantages of Classification of goals and functions

Classification of goals and functions provides many advantages, including:

• Improved clarity and understanding of the strategic direction of the organization. It provides a framework for decision-making and outlines the objectives that the company should strive to achieve.
• Enhanced accountability and responsibility among employees. By defining the goals and functions of each individual, it becomes easier to motivate and monitor their performance.
• Enhanced communication within the organization. By clearly defining the goals and functions of each employee, it becomes easier to coordinate activities and ensure that everyone is working towards the same objectives.
• Improved efficiency. By having a clear understanding of the roles and responsibilities of each employee, it becomes easier to assign tasks and delegate responsibilities, thus leading to improved efficiency.
• Improved customer satisfaction. By setting clear goals and functions, it becomes easier to provide quality customer service, thus leading to higher customer satisfaction.

Limitations of Classification of goals and functions

One of the main limitations of classification of goals and functions is that it can be difficult to determine which goals and functions are relevant to the organization and which are not. Additionally, the classification system can be too rigid and does not always reflect the complexity of organizational needs. Furthermore, the classification may lead to misunderstandings and miscommunications as different stakeholders interpret the same goals and functions differently. Finally, the classification can be too narrow and does not always consider all the goals and functions that are essential for the organization’s success. *Thus, the classification of goals and functions should be used with caution and should be regularly reviewed and adjusted to reflect the changing needs of the organization.

Other approaches related to Classification of goals and functions

Introduction: Classification of goals and functions can be approached from many different perspectives.

• Goal-setting Theory - This theory suggests that motivation and performance are improved when goals are set. It is based on the idea that when people have specific goals to work towards, they are more likely to achieve them.
• Performance Management - Performance management is a systematic process used to assess and monitor employee performance. It involves setting goals and objectives, providing feedback on performance, and providing rewards and recognition.
• Strategic Planning - Strategic planning involves setting goals and objectives, analyzing the environment, and developing strategies to address the organization’s goals. It helps to ensure that the organization is focusing on the right things and staying on track.
• Process Improvement - Process improvement is a systematic approach to improving the efficiency and effectiveness of an organization’s processes. It involves analyzing existing processes and making changes to them in order to achieve better results.

In summary, Classification of goals and functions can be approached from a variety of different perspectives, such as goal-setting theory, performance management, strategic planning, and process improvement. Each approach has its own set of advantages and disadvantages, but all of them can help an organization achieve its goals.

Classification of goals and functions — recommended articles

Strategic cost management — Organizational documentation — Activity-based management — Goal intensity matrix — Strategy — Strategic goal — Strategic direction — Strategy of the organization — Development and organizational balance

References

• Lind, M. (1994). Modeling goals and functions of complex industrial plants. Applied Artificial Intelligence an International Journal, 8(2), 259-283.
• Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American psychologist, 57(9), 705.
• Locke, E. A., Shaw, K. N., Saari, L. M., & Latham, G. P. (1981). Goal setting and task performance: 1969-1980. Psychological bulletin, 90(1), 125.
• Perrow, C. (1961). The analysis of goals in complex organizations. American sociological review, 854-866.
• Turner, J. R., & Cochrane, R. A. (1993). Goals-and-methods matrix: coping with projects with ill defined goals and/or methods of achieving them. International Journal of project management, 11(2), 93-102.