Organizational goal is the strategic objective of the entity which establish as the goal for the management and staff to achieve. It is the main purpose of the entity to be created. It helps to guide the employees and all management level to ensure that everyone work for the same objective.
The goal help to define the company objective to improve business growth, increase shareholders’ wealth, and impact the community. The management of the company can use the goal to measure the company’s performance and determine how far it needs to work. The short-term objectives can be set to align with the company’s main goals.
The management needs to set the goal to SMART, Specific, Measurable, Achievable, Realistic, and Timely. Otherwise, it will just a dream which never is completed. Moreover, the goals must be communicated to all staff levels to ensure that they can achieve the goal at a specific level. Management should make a realistic environment to support the achievable goal.
Type of Organizational Goals
Long Term Goal
Long-term goals are the company’s main objective which the management wishes to achieve in more than a year or two. These goals need to include in the company master plan, the annual plan and short-term plan should support the main goals. Moreover, the short-term goal should go against the long-term goal, we cannot sacrifice the long-term objective for short-term gain.
Short Term Goal
It refers to the company goals which set to achieve in less than a year. It is the annual sale target, target profit, share price, and production. The company usually break down the long term goal to smaller goal and achieve them within a shorter period such as monthly, quarterly and annually. The short-term goals are more realistic and reflect company performance. It easy to measure if the company can complete or not.