The global goal of the organization is a formulated reason for its existence. It reflects in a concentrated form its social commitments and the company’s intention to produce goods and services in such a way as to satisfy consumers and prosper.
How to write your organization’s purpose and mission
The global purpose determines where the organization is going. The definition of the global goal of the organization is done at its creation. However, the management of the organization may change it periodically in response to changes in the environment.
Defining the global purpose of the organization is a condition for defining its mission.
The company’s mission determines the way to achieve the global goal. This is why the overall global goal could be achieved in different ways. The mission specifies through the production of which goods or services and through the service of which users the global goal will be achieved.
The company’s mission shows what the company should do. For example, if an organization’s global goal is to make a profit for its owners by providing services to citizens, it could be pursued in various ways. It is necessary to determine what services will be provided and for whom.
The mission is determined at the establishment of the company and is changed if necessary by the management. It can be broader or more narrowly worded.
The defined global purpose and mission of the organization have great and lasting significance for it. On the one hand, they legitimize the company among the elements of the environment, showing its individuality and course of action, and on the other hand, they inform and influence the employees of the organization.
They guide staff in choosing specific tasks and scope for action, clarifying what is appropriate and what is not, and helping managers to set decision-making directives.
Defining the goals of the organization
Goal setting is a particularly important component of strategic planning. Reference: “The strategic planning process in the organization”, https://newia.info/strategic-planning-process-organization/
The set goals are the ones for formulating the strategies, they give the managers the criteria for choosing or rejecting the individual alternatives.
The goals of the organization for the further concretization of the global mission. They are usually the result of the implementation of the previous strategic plan, some of the goals that have not been achieved but are still relevant, as well as the need to seek new ones, given that the state of the organization and the environment have changed significantly. Reference: “Planning the activities of the organization”, https://www.yahowto.com/planning-the-activities-of-the-organization/
The goals of the organization form a system of separate goals decomposed at different levels. This system includes:
- 1. Strategic goals
- 2. Tactical goals
- 3. Operational objectives
Strategic goals are long-term
The strategic goals are long-term and are set by the top managers, they are set in writing but in a relatively abstract form. They are open goals.
The tactical goals of the organization specify the strategic ones for a later period of time.
The middle level of the organization is responsible for them. They are put in writing, but with more specific wording.
According to Peter Drucker, most companies use the following types of tactical goals:
Marketing goals – increasing customer satisfaction with the products, services, and activities of the company, increasing sales and market share, changing products, expanding product ranges, etc.
Innovative goals – they are aimed at creating new products and services or a new production process. These goals are within the scope of the research and technology departments.
Profit goals – increasing the profit affects the activities of the whole company and is a problem for senior management. But ensuring profitability can be defined as a tactical goal of individual departments and the so-called “profit centers”.
Objectives related to the material resources of the company – they are related to providing the necessary equipment, raw materials, materials, etc.
Objectives are related to financial resources. These goals are related to raising capital and the financial security of the company. Through them, there is a preliminary linking of the needs for financial resources with the sources for their collection. These problems are dealt with by the financial departments
Personnel goals are related to the hiring, development of the company’s employees, as well as to the reduction of their absences and turnover. These goals are related to the work of not only the “Personnel” department but also all other departments
Objectives related to production – they seek to increase the output of each worker in the company, and therefore the efficiency of the overall activity. Of course, the increase in productivity in order and for departments that are not directly involved in production. These goals include reducing the costs of each product, activity.
Goals related to the social responsibility of the company – they relate to the relationship between the company and society, the municipality, and the state. Reducing pollution, supporting public endeavors and events, maintaining constant contact with the public, and more. They are part of these goals.
The operational goals further specify the technical goals of the organization. They are aimed at the lowest level of management of the organization. The operational objectives are closed, but also determine the exact criterion for evaluating their implementation and the time for this implementation. They form the specific criteria for assessing the individual efforts of the employees of the organization and thus create the standard for their behavior. As the tactical goals of the company derive and specify the strategic, so the operational ones derive from the tactical ones.