ORGANIZATIONAL GOAL

Introduction
A goal or objective is a desired result a person or a system envisions, plans and commits to
achieve. An individual or organisational desired end – point in some sort of assumed
development. Many people endeavor to reach goals within a finite time by setting deadlines. It is
roughly similar to purpose or aim, the anticipated result which guides reaction, or an end, which
is an object, either a physical object or an abstract object, that has intrinsic value. Goal setting
ideally involves establishing specific, measurable, attainable, realistic and time targeted
objectives. Work on the goal-setting theory suggests that it can serve as an effective tool for
making progress by ensuring that participants have a clear awareness of what they must do to
achieve or help achieve an objective.
WHAT IS ORGANIZATIONAL GOAL
Organizational goals are the targets established by organizational leaders. These goals are
created to achieve a certain level of output or success . These specific objectives are typically
used to guide desirable organizational outcomes and create outlines for employee work flow.
Organizational goals may exist at many levels- goals can be set for individual, teams or the entire
organization, and they typically have specific time frame in which they are expected to be
addressed. Organizational goals usually change as time passes and as the need arises.
The essence of formation of an organization is to pursue and achieve a goal which only one
individual cannot achieve and every organization have goals. As submitted by Bobbit et al
(1987), a very rational view of organizational goals is that they are set at the top of the
organization as policy guidelines and organization. Each individual then has a set of goals related
to his specific activities; and, if each person accomplishes his goals, they will add up to the
accomplishment of the organizational goals.
AMitai Etzioni (1964) as identifies the functions associated with organizational goals:
i. provide orientation by depicting a future state of affairs which the organisation strives to
realize, hence they set down guidelines for organizational activities;
ii. Constitute a source of legitimacy, which justifies the activities of an organization and, indeed,
its very existence;
iii. serve as standards by which members of an organization and outsiders can assess the success
of the organization, that is, its effectiveness and efficiency; and
iv. serve as measuring rods for the student of organizations who tries to determine how well the
organization is doing.

In their own contribution, Cyert and Merck (1963) defines five major goals areas that reflect the
desires of various coalitions in the organization and that, at least implicitly, reflect the impact
and uncertainties of the environment. These goals areas are production goals (degree of
smoothing and level of production), inventory goals (either in absolute level or a range of
acceptable value) sales goals (level of sales), market share goals; and profit goals. All of these
are in effect aspiration levels, which various coalitions attempts to achieve and which vary
experience. Obviously, the achievement or non-achievement of these goals depends on events in
the relevant environment that affect the organization. Uncertainty in the environment will cause
uncertainty in the goal achievement of the organization.
Types of Organizational Goals
The organizational goal can be categorized based on the level of hierarchy and time horizon.
These include:

 Mission Goal – The Mission statement of the organization is the mission goal. It reflects
the vision of top management about the organization’s business. It focuses on the image,
philosophy, and aspirations of the organization.
 Strategic Goal – It is the formal statement of the purpose made by top management to
attain the mission. Strategic goals are also set by top management with a discussion of
middle and lower management.
 Tactical Goal – These goals are set by middle-level managers for departmental purposes.
These goals are made to achieve the strategic goal and have shorter time spans than
strategic goals.
 Operational Goal – These goals are set for lower-level managers. The main objective of
setting operational goals is to operate day-to-day operations efficiently

Characteristics of Organizational Goals

The following are the common features of an effective organizational goal.

Reflect Purpose of Existence: The goals of any organization reflect for what purpose
the organization is established. The operations of organizational organisms are guided by goals.
The effectiveness of organizational goals validates the rationale behind the organization’s
formation. This also shows how long the firm can continue to fulfill its mission.

Future-Oriented: Goals are future-oriented. A goal gives an organization its destination. The
organization’s goals define where it wishes to be at a given period. The main objective of setting
goals is to set activities, priorities, and efforts to attain the end target. As a result, goals are
created for potential future actions.

Multiple Goals At A Time: Organizations may formulate many goals at a time. Profit
maximization, value creation, product diversification, etc. are multiple goals that can be fixed by
the organization at a time. But to be specific, the organization should prioritize its goals on the
basis of its strengths, weaknesses, opportunities, and threats.

Goal Hierarchy: In accordance with an organization’s hierarchical structure, goals may have a
distinct hierarchy. According to their functional tasks, different organizational levels set their
goals. Organizational goals are established at the top level, departmental goals are created by
management at the departmental level, and operational goals are created at the operating level.

Time Frame: Organizations set goals across different time frames. According to the time horizon
of goals, they can be classified into short-term goals, intermediate goals, and long-term goals.

 Long-Term Goals – Goals having a long-run impact are called long-term goals. These
goals are formulated for the long run, especially for more than five years.
 Middle-Term Goals – To attain long-term goals organization needs to break down the
goals into departmental goals. Each department formulates its goals according to its
functional area. These goals are called middle-term goals. Such a goal’s time spans the
range from 3 to 5 years.
 Short-Term Goals – Short-term goals are formulated to conduct regular activities more
effectively for less than one year. These goals are established by unit managers or
supervisors.

Importance of Organizational Goals

Organizational goals help companies define their purpose, it assist them in designing all other
activities that are necessary to ensure effective and efficient goal realization. Following are some
of the reasons why the organizational goal is important.

 Provides Guidance and Direction – Organizational goals provide guidance and unified
direction to employees. It states what the organization wants and shows where it is going
and how it achieves the desired destination.
 Source of Motivation – Goals also help organizations motivate and inspire employees.
For this, it should be SMART and additionally, some incentive measures to effectively
implement the goals.
 Ensures Effective Planning – Effective goals also support making effective plans. A
SMART goal also provides the necessary direction and insights for managers to develop
effective plans that ensure the right implementation.
 Basis of Control – Managers can measure the performance of employees based on the set
goals. He can evaluate and control the employee’s progress by comparing the standard
goals and actual performance.
  Helps in Organizing – Based on the desired goal organizing activities like division of
work, rules, regulations, working procedures, authority-responsibility relationship, etc.
are designed.
 Proper Use of Resources – It also ensures the proper use of organizational resources.
Managers need to give proper instruction and direction to employees to effectively utilize
the resources for desired goals.
 Assist in Staffing – Goals assist the organization to keep the right person in the right job.
It also aims to increase employee efficiency by delivering different efficiency-enhancing
programs.

Examples of Organizational Goals

It is obvious that in every organization there is one thing in common that is they all have some
goals for which they are established. The goals can be different kinds, some examples of the
organization’s goal include:

 Profit Maximization.
 Social Welfare.
 Employee Satisfaction.
 Better Customer Service.
 Market Expansion.
 Product Diversification.
 Providing naturally healthy products.
 Provide quality products at a reasonable price.
 An educational institution may set goals such as “To be the center for learning for the
students who aspire to be globally competitive.”
 The goal may be to increase by 5% in sales within the next two years.

PROBLEMS WITH ORGANIZATION GOALS

Among the many problems associated with the concept of organizational goals are the following;
i. It can be argued that, strictly speaking, organisations do not have goals,
ii. only individuals do;
iii. Goals are hard to observe and measure; for example, should we focus upon the behaviour of
all members of an organization or only the powerful members? Should we take at face value, the
statement of goals top officials or should we ignore these and examine only what they actually
do?
iv. How do we distinguish between a goal and a means? What one observer calls a goal, another
may equally designate as a means towards some higher or more general goal. For example,
Profit may be viewed as a goal or as a means of rewarding stockholders or ensuring growth (the
“real” goals). These and several other problems have made the goal concept one of the most
ambiguous in the organizational goal’s literature.
The influence of organizational changes on organizational goals leads to goal displacement and
goal replacement.
Goal Displacement: is very common in organizations. It occurs when the former goals of an
organization are set aside in preference for others which may only be slightly related. For
example in Nigeria, the River Basin Authority (RBA) original goal was to service the small-scale
farmers but was later turn into contract-awarding organization.
The mildest and most common form of displacement is the process by which an organization
reverses the priority between its goals and means in a way that makes the means a goal and the
goals a means. The most common means so displaced is the organization itself. Organizations
are instruments; they are created to serve one or more specific goals. But in the process of
forming them, of granting them resources, and of recruiting personnel, interest groups are formed
which are frequently concerned more with preserving and building up the organization itself than
helping it to serve its initial purpose. These interest groups use the organizational goal as a
means of recruiting funds, obtaining tax exemptions or status in the community; in short, as
means to their own goals.
Goal Substitution: This is used to denote a situation where organizational goal change in
response to changed circumstances. It is a deliberate act. In this sense, goal substitution is the
same as goal replacement. This presents a situation where an organization completely
accomplishes its goals; however, rather than being dissolved or phased out, the organization
takes on other goals in order to continue to remain relevant in the scheme of things. One recalls
that in 1948, the then Foot Commission recommended the Nigerianization of the Nigerian Civil
Service. For purposes of its implementation, a Nigerianization office was established in the Civil
Service. The goal was to ensure that qualified Nigerians took over administrative positions from
the Europeans. A little after 1963, when that goal was fully accomplished, rather than scraping
the Nigerianization office completely, it was redesignated the Manpower Development
Department of the Office of head of the Civil Service of the Federation and was to provide the
goal of ensuing adequate training of the staff of the entire Civil Service.
How then do we identify Organizational Goals?
There are three strategies for identifying organizational goals. These are;
i. Making recourse to the laws establishing the organization. These are the charter, the act of
parliament or the decree. In these documents are spelt out the goals, aims, objectives and
functions of the organization. Though this is the most genuine means of identifying
organizational goals because the documents being referred to are legal documents, it could
sometimes not reflect an update of such goals because these document are not revised or updated
frequently.
ii. Observing what the organizational members are actually doing. This reflects updated goals of
the organization and is more practical and thus genuine with regard to the current goals of the
organization.
iii. Policy statements or pronouncements made by leaders of the organization about the purpose
of their organization. These statements are made both during social gatherings and at more
serious occasions.
GOAL MANAGEMENT IN ORGANIZATIONS
Organizationally, goal management consists of the process of recognizing or inferring goals of
individual team-members, abandoning no longer relevant goals, identifying and resolving
conflicts among goals, and prioritizing goals consistently for optimal team-collaboration and
effective operations. For any successful commercial system, it means serving profits by making
the best quality of goods or the best quality of services available to the end-user (customer) at the
best possible cost.
Goal management includes;
1.Assessment and dissolution of non-rational blocks to success.
2.Time management
3. Frequent consideration (consistency checks)
4. Feasibility checks
5 Adjusting milestones and main-goal targets