Meaning and Nature: All organizations and all individuals require a sense of direction. People who do not have a good idea of where they are proceeding will not know when they get there, and will not be able to plan effectively to get there. Plainly, good management requires clear organizational goals.
In simple terms, organizational
goals are the desired states of affairs which the organization attempts to
realize. The organization may or may not reach the desired state, but the
chances of doing so are greater if the goals are framed and understood
properly.
Goals are the products of specific, concrete thinking. They commit persons and organizations to verifiable accomplishments. In fact, the concept of goal has acquired a variety of meanings over the years. It is sometimes used to legitimize the role of the organization in society (the goal of Premier Automobiles is to make automobiles) or to provide a motive for organization’s activity (General Motor’s goal is to make a profit).
Goals are the products of specific, concrete thinking. They commit persons and organizations to verifiable accomplishments. In fact, the concept of goal has acquired a variety of meanings over the years. It is sometimes used to legitimize the role of the organization in society (the goal of Premier Automobiles is to make automobiles) or to provide a motive for organization’s activity (General Motor’s goal is to make a profit).
A goal may also be specific
accomplishment such as manufacturing so many pressure cookers during a given
time period. In another sense goals may be considered as the set of constraints
that the organization must satisfy i.e, making profits for the shareholders,
meeting the governmental safety standards, pacifying the environmentalists, and
satisfying customers. The goals of organizations serve many functions.
They provide orientation by depicting a future state of affair which the organization strives to realize. Thus they set down guidelines for organizational activity. Goals also constitute a source of legitimacy which justifies the activities of an organization and, indeed, its very existence. Moreover, goals serve as standards by which members of an organization and outsiders can assess the success of the organization i.e. its effectiveness and efficiency. Goals also serve in a similar fashion as measuring rods for the student of organizations who tries to determine how well the organization is doing.
Amitai Etzioni has defined organizational goal as that future state of affairs which the organization as a collectivity is trying to bring about.
They provide orientation by depicting a future state of affair which the organization strives to realize. Thus they set down guidelines for organizational activity. Goals also constitute a source of legitimacy which justifies the activities of an organization and, indeed, its very existence. Moreover, goals serve as standards by which members of an organization and outsiders can assess the success of the organization i.e. its effectiveness and efficiency. Goals also serve in a similar fashion as measuring rods for the student of organizations who tries to determine how well the organization is doing.
Amitai Etzioni has defined organizational goal as that future state of affairs which the organization as a collectivity is trying to bring about.
How are organizational goals
determined? In part the participants may act as informants. We may interview
executives and employees of various departments to establish what they see as
the organization’s goal. Interviewing them, we must carefully distinguish their
personal goals from the goals of the collectivity.
The participants should be specifically asked what they see as the organizational goal, as distinct from their own or from those which they think the organization ought to pursue. We may also get relevant information by studying minutes of the board meetings and by examining other documents of the organization. We can also analyze the division of labour of the organization, its flow of work, and its allocation of resources as reflected in its budget to determine the actual organization’s orientation to a future state of affairs.
The participants should be specifically asked what they see as the organizational goal, as distinct from their own or from those which they think the organization ought to pursue. We may also get relevant information by studying minutes of the board meetings and by examining other documents of the organization. We can also analyze the division of labour of the organization, its flow of work, and its allocation of resources as reflected in its budget to determine the actual organization’s orientation to a future state of affairs.
According to
Amitai Etzioni, the researcher will define as the real goals of the
organization those future states towards which a majority of the organization’s
means and the major organizational commitments of the participants are directed
and which in case of conflict with goals which are stated but command few
resources, have clear priority.
Sometimes establishing intimate contact with key participants allows the researcher to determine how aware informants are of any discrepancy between real and stated goals. Generally, however, it is unwise to depend entirely on interviews for information on an organization’s real goals. An examination of the allocation of resources and direction of efforts is often a necessary complementary research method for obtaining satisfactory results.
Sometimes establishing intimate contact with key participants allows the researcher to determine how aware informants are of any discrepancy between real and stated goals. Generally, however, it is unwise to depend entirely on interviews for information on an organization’s real goals. An examination of the allocation of resources and direction of efforts is often a necessary complementary research method for obtaining satisfactory results.
How Goals Are Set: Virtually all organizations have a
formal, explicitly recognized, sometimes legally specified organ for setting
the initial goals and for their amendment. In organizations, goals are set
formally by a vote of the Stockholders; in others, by a vote of the members
(e.g. in some labour unions) in still others, by a small number of trustees;
and in a few by an individual who owns and runs the organization. In practice,
goals are often set in a complicated power play involving various individuals,
and groups within and without the organization and by reference to values which
govern behaviour of the relevant individuals and groups in a particular
society.
There are many factors that enter into the struggle to determine organization’s goal. Organizational departments or divisions often p1ay prominent role in the process. Personalities are another import determinant, especially when a strong leader has established himself in the position of president or executive director. In addition to departments and personalities, environmental forces play an important role.
There are many factors that enter into the struggle to determine organization’s goal. Organizational departments or divisions often p1ay prominent role in the process. Personalities are another import determinant, especially when a strong leader has established himself in the position of president or executive director. In addition to departments and personalities, environmental forces play an important role.
Characteristics of Goals
Generally speaking, organizational
goals are visible and understood by all. They provide undeniable evidence for
how well the man with the gun has performed. When goals are defined and set, it
is hard to plead ignorance, forgetfulness and misunderstanding.
Apart from these simple descriptions, organizational goals have the following distinct features.
Apart from these simple descriptions, organizational goals have the following distinct features.
(i) Hierarchy:
In many organizations, goals are structured in hierarchy of importance.
There are objectives within objectives. The hierarchy of objective is a graded
series in which organization’s goals are supported by the succeeding managerial
level down to the individual. Hence, no work should be undertaken unless it
contributes the over all goal.
(ii) Means-ends-Chain:
Usually the
hierarchy of objectives (goals and objectives are used interchangeably in this
chapter) in an organization is described through means-ends-chain. In an
organization the relationship between means and ends in hierarchical goals
established at one level requires certain means for their accomplishment. This
means then become the sub-goals for the next level, and more specific operational
objectives are developed as we move down the hierarchy. For instance, the broad
objective of customer oriented profitable growth can be achieved if the two
divisions, say, plastics and metal products, work out their individual goals
(like turning out quality products, developing new products effectively). And
if the production, marketing and other departments accomplish their
departmental objectives, they contribute to the achievement of divisional
goals. Thus, the means-ends chain directs the behaviour of every individual and
every department towards the highest objective of the organization.
(iii) Network: Objectives inter-lock in a network
fashion. They are inter-related and inter- dependent. The concept of network
implies that once objectives are established for every department and every
individual in an organization, these subsidiary objectives should contribute to
meet the basic objectives of the total organization. If the various objectives
in an organization do not support one another, people may pursue goals that may
be good for their own function, but may be detrimental to the company as a
whole. Managers have to trade-off among the conflicting objectives and see that
the components of the network fit one another.
(iv) Multiplicity:
At first glance, it might appear that organizations have a singular goal; for
business firms, to make a profit; for non profit organizations, to efficiently
provide a service. But closer examination reveals that all organizations have
multiple goals. Business also seeks to increase market share and satisfy
employees’ welfare. No one measure can effectively evaluate whether an
organization is performing successfully. Emphasis on one goal, such as profit
ignores other goals that must also be achieved if long term profits are to be
achieved.