Company Goals Flashcards
Define an intended future state or a future state that can be achieved by an organisation’s own actions
Goals
What are Goals?
Guidelines for action
In which classification characteristics can goals be differentiated? (6 elements)
1) Goal-defining entity
2) Goal content
3) Goal scope
4) Timing
5) Relations between goals
6) Ranking
In which categories the diffferentiation characteristic “goal-defining entity” can be divided?
- Individual goals
- > pursued by individuals
- Institutional goals or collective goals
- > set for institutions and/or companies
What does the differentiation characteristic of goals “goal content mean?
It provides a definition of goals in terms of units of quantity (Production volume) or monetary units (ex: turnover)
In which categories are often divided company goals?
Formal goals and Operative goals
What is a formal goal?
Higher-order goals which express the success of the entrepreneurial activity?
(Ex: Productivity, Profitability,..)
What is an operative goal?
A goal which refers to concrete activities in the various processes and/or functions
(Ex: Marketing goals, Personnel goals,..)
4 types of operative goals linked to operational activities
- Performance goals
- Financial Goals
- Management & Organisational goals
- Social & Ecological goals
3 types of formal goals
- Productivity
- Economic viability
- Profitability & Profit
What is productivity?
A ratio between amount of output and amount of input
A ratio between amount of output and amount of input
Productivity
Productivity ratio:
Output quantity (output) / Required quantity (input)
Labor productivity ratio:
Number of units produced / number of working hours
Machine productivity ratio:
Number of units produced / Amount of machine hours
