What is the process of determining the organizations objectives and deciding how do you accomplish them?

1. Career development
2. A Guide To the Objectives of an Organization

By Indeed Editorial Team

Updated May 5, 2021 | Published March 15, 2021

Updated May 5, 2021

Published March 15, 2021

Companies that can clearly define their primary purposes are often better prepared to plan for the future and make strategic decisions in areas like staffing and budgeting. Having objectives that outline an organization's focus can help employees stay focused and create cohesion in the workplace. These objectives should align with a company's vision and communicate its values. In this article, we discuss why the objectives of an organization are important, how to organize these objectives, the goals of organizational objectives and elements of good objectives.

Why are the objectives of an organization important?

The objectives of an organization are important because they help every member of the organization, from stakeholders to entry-level employees, understand the company's mission. The organization's objectives help communicate what the company values and where it wants to be in the future.

Managers and executives typically create the organization's objectives, but, when properly designed, they can motivate and unify the entire company.

The objectives of an organization are also important because:

They communicate an organization's purpose

An organization's objectives communicate its primary purpose to employees and the public. They reveal why the company exists and what value it wants to add to consumers and the community.

They lead to relevant planning

When managers and employees know what the ultimate objectives are for their company, they can create short-term and long-term plans that work toward these goals. Objectives provide the direction for every department's planning strategies by outlining the company's key priorities.

For example, consider a marketing firm that has an objective of 90% of its business focused on digital marketing. Spending time, money or employee hours on elaborate direct mail campaigns or finding clients that want physical brochures and business cards is not a good use of company resources, as those business activities do not help the company meet its objective.

They provide a tool for evaluation

An organization's objectives provide a defined benchmark to use to evaluate performance and productivity. Managers can gauge whether employees are meeting their individual goals, which support the company's overall objectives. With the objectives as the ultimate benchmark, team members and the company as a whole can identify their progress or challenges in reaching these metrics. Employees and supervisors can adjust their goals as needed to better align with organizational objectives.

Read more: Management by Objectives (MBO)

They promote commitment to growth

All members of an organization can better assess the merit of their activities and duties by evaluating them against the company's objectives. Rather than commit to certain processes or roles, the company commits to meeting its objectives. This allows the organization to be more open to new ideas, technology and other innovations that may help them reach their objectives.

Read more: 13 Business Objectives for Growth

How to organize the objectives of an organization in 8 steps

Organizational objectives differ markedly across industries and companies, but there are steps that can help you craft effective objectives regardless of your field:

1. Review or define your company's mission

Having a clearly defined mission statement helps your organization and the public know what your overall purpose is. Your organization's objectives should come directly from this vision, serving as the concrete ways you will accomplish your mission.

2. Know your strengths and weaknesses

Many organizations find it helpful to run a SWOT analysis, which determines strengths, weaknesses, opportunities and threats. This can provide valuable insights into areas where your organization is succeeding and areas that may require more attention. You can use this information to create realistic objectives and decide how to allocate resources in a relevant way for your company and industry.

3. Consider key factors

When determining organization objectives, factor in any relevant internal or external variables that can affect your organization's operations, including:

• Budget

• Resources

• Technology

• Staffing needs

• Company culture

• Market behavior

• Environmental constraints

• Industry trends and best practices

4. Brainstorm with your employees

Invite employees to provide feedback about your organization, such as strategies that are successful and areas that are more challenging. Employees may also have insights directly from clients or customers that can help shape your company's priorities and goals. Including your employees' and clients' perspectives in your planning can ensure your objectives are practical and relevant. Additionally, feedback from employees can help you provide the necessary tools and support for them to complete the daily responsibilities that enable your organization to achieve its objectives.

Read more: How to Set Goals as a Team: Steps and Examples

5. Begin with a five-year plan

It's wise to begin creating your objectives by thinking about where you want the organization to be in five years. From that point, you can create long-term objectives that align with these plans, followed by the short-term (one-year) objectives that are necessary to reach those goals.

6. Organize your objectives

Decide what types of objectives work best with your organization:

• Strategic: Strategic objectives are typically long-term, broader goals that apply to an organization as a whole. For example, your organization may have a strategic objective to have a client retention rate of 80% in three years.

• Tactical: Tactical objectives typically apply to each specific department. Middle-level managers define these departmental goals, which help companies achieve their strategic objectives. A tactical goal for the above strategic goal might be to receive 90% positive customer ratings.

• Operational: Operational objectives are short-term, specific goals that are better suited for performance measurement on a weekly or monthly basis, usually created by lower-level managers. An operational objective that aligns with the previous strategic and tactical goals is to reach a client retention rate might be to make 100 outreach calls to clients each week.

• One objective or several objectives: Your organization may focus on a single principal objective to demonstrate your company's current focus, or you may choose several key objectives.

7. Set deadlines

Determine the timeframe of your objectives and the target deadline for each of these goals. The deadlines should be realistic but challenging. As deadlines approach, managers can adjust as needed.

8. Assign ownership of each objective

Choose which departments or managers are in charge of reaching each organizational objective. For some objectives, this can be a logical determination. For instance, if you have an objective to increase sales by 20%, it makes sense for the sales director to be in charge of this goal. Other objectives may need more discussion and collaboration to identify a point person. For example, a goal of enhanced logistics involves the production department, sales department and delivery personnel.

What are the goals of an organization's objectives?

The goals of an organization's objectives include:

• Accomplishing the company's mission: A company's mission states why it exists and what it aims to do, while its organizational objectives state how it will accomplish this.

• Developing organizational policies: An organization's objectives help shape its policies. The standards that a company defines for its team members should align with its mission and goals.

• Giving companies an advantage: Strong, strategic objectives can help set your company apart in the market by creating a focused, committed organization with clear goals.

• Sharing the direction of the company: Organizational objectives show employees, clients, customers and vendors what your company stands for and hopes to achieve.

• Creating common goals: Organizational objectives help unify a company and focus tasks toward one or several shared goals.

Elements of good objectives

Effective organizational objectives should be:

S.M.A.R.T.

Goals are often most effective when they follow the SMART principles, which recommend goals that are

• Specific: Objectives should be clearly defined and refer to a single feature.

• Measurable: Goals should be objectively measurable using metrics like percentages, dollars and survey rankings.

• Ambitious: Objectives should be challenging to achieve, motivating employees to work hard and efficiently.

• Realistic: Company goals should be attainable. Goals that feel impossible can discourage employees.

• Timely: Setting a deadline for your goals makes them clearer and easier to monitor.

Read more: SMART Goals: Definition and Examples

Transparent

When all members of an organization know and understand the company's objectives, they can feel like a part of the team. This openness and inclusion can lead to improved employee engagement and greater contributions in the workplace.

Affirming

An organization's objectives should affirm the company's values. They show what the organization prioritizes and spends its resources on. Depending on the organization, objectives may include:

• Employee performance ratings

• Productivity measures

• Revenue goals

• Social responsibility initiatives

• Customer satisfaction measures

What is a process used to accomplish organizational goals?

What determines how an organization will meet its objectives?

What is the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals?

Which process is doing something or making decisions that affect the attainment of organization objectives?