organizational_objectives_flashcards
Title
Content
Organizational Objectives
The goals that business managers set to grow and sustain.
Mission Vs. Vision Statement
Mission Statement: A set of plans that shows where the business organization is now and how the business plans on achieving its vision statement.
Vision Statement: The long-term and highest aspiration that business managers seek to achieve in the future.
Mission Statement Details
- Why are we doing what we are doing?
- Reflects where the business is now and how to reach the vision statement.
- Creates accountability and trust in internal stakeholders.
- Measures success in achieving the vision statement for external stakeholders.
- May change to cope with external factors.
Vision Statement Details
- What do we want?
- Points to the future and gives direction.
- Inspires internal stakeholders and binds external stakeholders.
- Never changes.
Aim Vs. Objective
Aim: General and long-term goals for the future (vision statement is the highest aim).
Objective: Specific goals for short-term, medium-term, and long-term.
Types of Objectives
**Strategical Objectives: Long-term goals set by senior managers to achieve business aims.
Tactical Objectives: Medium-term goals set by middle managers to achieve strategic objectives.
Operational Objectives: Short-term daily goals set by floor managers/workers to achieve tactical objectives.
SMART Objectives
- Specific: Clear and well-defined.
- Measurable: Quantifiable, represented with numbers.
- Achievable: Realistic.
- Relevant: Aligned with the mission statement.
- Timely: Has a predetermined timeframe.
Business Strategy Vs. Business Tactic
Business Strategy: Long-term plans related to strategic objectives.
Business Tactic: Short- to medium-term plans related to tactical and operational objectives.
Reasons for Changes in Objectives
Objectives might change due to variations in the internal and external environments.
Changes in the Internal Environment
- Leadership Change: New CEO leads to new aims and objectives.
- Human Resources Change: New hires can alter tactical/operational objectives.
- Organizational Change: New strategies (e.g., mergers) affect all objectives.
- Product Changes: New or modified products to meet customer needs.
- Financial Changes: Finance availability affects product provision.
- Operational Changes: Innovations affecting processes.
Changes in the External Environment
Use STEEPLE framework:
- Social: Values, traditions, demographics, preferences, and culture.
- Technological: Innovations reducing costs and increasing productivity.
- Economic: Inflation, unemployment, recessions, etc.
- Ethical: Accepted/rejected behavior in society.
- Political: Government decisions affecting operations.
- Legal: Existing legal frameworks.
- Ecological: Environmental regulations and impacts.
Ethical Objectives Vs. CSR
Ethical Objectives: Specific goals based on community values, related to products and operations.
CSR: How businesses behave as corporate citizens to enhance community and sustainability; not mandatory or related to operations.
Why Ethical Objectives and CSR
- Develop customer loyalty.
- Enhance society as corporate citizens (CSR).
- Maintain brand image.
- Create a positive work environment.
- Reduce legal problems.
- Meet customer expectations.
- Maintain high sales and profits.
Related Tools
SWOT analysis and Ansoff matrix are tools related to organizational objectives (refer to the Business Management Toolkit).
