Goals are critical to organizational effectiveness as they serve as objective for the employees and they work to achieve it.
Organizational goals differ in three different criteria’s; level, area, and time frame. Let’s look at these criteria’s of goals;
Organizational goal differs in level of the organization structure or hierarchy. Organization structure consist of there part; top-level, mid-level and lower-level or first-line managers.
For each level the goals should be different and more specific; suitable for the level.
“Increase profit and market share” is a suitable goal for top level managers but not for the lower level managers. “Increase output by 12%” is a suitable goal for lower-level managers.
Organization set different goals for different areas more specifically different departments.
Organization may have many departments within its structure; marketing, finance, operations, accounts, human resource, legal and more.Each department should have a different goal; which specifies the departments about their task but is in line with the whole organization’s goal.
Organizations have many goals across different time frames. “Open 500 branch across the country” is a suitable long term goal for a bank; “LC issue should increase by 50% within six months” short-term goal for a bank.
Difference in goals required because of the organization’s level, area or department, and time frame. Based on these three criteria’s goals can be categorized in three types;
- Strategic Goals,
- Tactical Goals, and
- Operational Goals.
They are described below;
Strategic goals are goals set by and for top management of the organization. These goals are made by focusing on broad general issues.
Strategic goals or strategy are usually long-term and from this goal other goals are made and set for different time-frames and area.
Tactical goals are set for middle managers. These goals focus on how to operationalize actions necessary to achieve the strategic goals. Middle managers of various departments are usually responsible for their attainment.
Tactical goals are set by the middle managers, but often top-managers set tactical goals for the middle managers.
Operational goals are set by and for lower-level managers. Operational goals are usually made to tackle shorter-term issues associated with the tactical goals and lower-managers are responsible for their attainment.
The three levels of goals within an organization form a hierarchy of goals, with lower-level goals forming a mean-end chain with the next level of goals.