DEFINITION
Purpose of the organization represents the end state or desired outcome that any company aspires to. The company always has one common goal, which all members of the labor collective should strive to achieve.
The defining feature of the goals is that they must be realistically feasible and achievable, while being understandable to the team.
When planning, the company's management conducts the development of goals, informing their employee. In some companies, all members of the workforce may be involved in the development of tactical goals. The joint definition of goals is the main motive and coordinating force of the enterprise, because as a result of this process, each employee understands what he should strive for.
The goals and objectives of the organization may include winning and maintaining a share of a certain market, achieving higher product quality, increasing the profitability of the company, achieving the maximum level of employment, etc.
Requirements for goals and objectives
The goals and objectives of the organization should be:
1.) Achievable (you can not overestimate the goal);
2.) Specific (determine the term);
3.) Address (identify the artist);
4.) Flexible (reviewed in accordance with changes in the internal and external environment);
5.) Consistent (if the company sets several goals, they must be consistent with each other).
The goals and objectives of the organization, set by management, are used in the process of establishing and evaluating the effectiveness of the company.
The goals and objectives of the organization set a general guideline for activities.
Tasks of the organization
DEFINITION
Tasks of the organization are goals that must be achieved by a certain time within the periods for which the management decision is calculated. Organizational objectives are goals that are not tied to time.
Depending on the structure of the organization, each position is characterized by a number of tasks considered as a necessary contribution to achieving the goals of the enterprise. At the same time, the tasks indicate the immediate goals of the company, which can be quantified.
The goals and objectives of the organization are mainly aimed at generating income from the production or sale of products.
The objectives of the organization may be to provide staff salary, generating income for the owners of the company, providing consumers with quality products in accordance with demand and contracts, protecting environment, preventing disruptions in the work of the company, etc.
- National public specifics,
- Features of the development of society that have developed historically,
- Geographical and natural conditions,
- Factors cultural environment and etc.
Goals and objectives of the organization
The goals and objectives of the organization can be determined by the interests of the owners, the situation within the company and the external environment, as well as the size of the company's capital.
The goals and objectives of the organization can be set both by the owners of the company and by managers and staff. When formulating and setting the goals and objectives of the organization, the owners rely on their own priorities, most often this is making a profit through production or sales.
The department formulating and concretizing the corresponding goals and objectives of the organization must take into account the real conditions for their implementation. Tasks and goals should be appropriate from the standpoint of the interest and profile of the organization; to achieve them, a sufficient amount of material and financial resources is required.
The main goal of most enterprises is to exceed the result over the costs incurred, that is, to maximize profits and high level profitability. To achieve this goal, enterprises perform a number of tasks: the production of high-quality products, the introduction of new technologies, the development of a strategy and tactics of behavior, ensuring competitiveness, caring for employees, etc.
Examples of problem solving
EXAMPLE 1
Like any conscious human activity, management is built on the basis of a predetermined result, on the basis of a programmed coordination of actions leading to the intended result. It is the goal that directs, organizes human activity. The goal is the anticipation in consciousness of the result, the achievement of which is directed by human activity. A goal is an ideal, mental anticipation of the result of an activity.
The importance of goals to an organization cannot be overemphasized. They are starting point planning, goals underlie the construction organizational relations, the motivation system used in the organization is based on the goals, the goals are the starting point in the process of monitoring and evaluating the results as a whole. Facilities - these are the tools with the help of which the conditions for solving managerial problems are formed (for example, the means of thinking and activity - analysis, synthesis, deduction, induction). Means to achieve the goal are divided into economic, socio-psychological and organizational. results activities of the organization can be material (goods and services), labor (employment), financial, informational, social, psychological. The results can be both negative and positive. Positive results are high-quality products, high profits, a normal climate in the team. Negative results are defects, financial losses. Functions of goals in the organization:
The purpose justifies the existence of the organization of people working in it.
The goal regulates the activities of the members of the organization
The purpose of the organization forces employees to take responsibility for achieving it.
The goal is the motivator of activity
Purpose reduces uncertainty in the organization
The goal is the standard for evaluating the work of members of the organization
Purpose is the basis for constructing an organization
If the mission sets general guidelines, directions for the functioning of the organization, expressing the meaning of its existence, then Goals are a specific state of individual characteristics of the organization, the achievement of which is desirable for it and the achievement of which its activities are aimed at..
Goal system.
Mission → strategic goals (no more than 7) → tactical (long-term, medium-term, short-term) → operational or current (goals-tasks) → operational goals (goals-tasks). Task is a prescribed job, a series of jobs, or a piece of work that must be completed in a predetermined manner within a predetermined time frame. From a technical point of view, the task is assigned not to the employee, but to his position. Each position includes the performance of a number of tasks that are considered as a necessary contribution to the achievement of the goals of the organization. Management tasks are divided into three categories: activities with people, with information and with resources.
Target classification:
The period of time it takes to reach them
Long-term - goals that are expected to be achieved by the end production cycle. In practice, long-term goals are considered goals that can be achieved in two to three years.
Short-term - such goals are characterized by a much greater specification and detail in such matters as who, what and when should be performed than for long-term ones.
If the need arises, between long-term and short-term goals, intermediate goals are also set, which are called medium-term.
Requirements for goals as a management tool:
Achievability (reality for the employees of the organization to achieve.
Flexibility (the ability to adjust goals in accordance with the changes that may occur).
Measurable (should be formulated in such a way that they can be quantified or assessed in some objective way that the goal is achieved).
Specificity (the goal should clearly fix what needs to be obtained as a result of the activity, in what time frame it should be achieved, who should achieve the goal).
Compatibility (long-term goals should be consistent with the mission, and short-term goals should be long-term. The organization's goals should not contradict each other).
Acceptability (primarily for the employees of the organization who have to achieve these goals).
These goals must be consistent with each other. If employees have goals that diverge from the goals of the organization, the latter will not be achieved. And vice versa.
MANAGEMENT BY GOALS as a method of managing an organization
The management system by goals appeared in response to changing conditions for the activities of organizations in the production, technical and socio-economic spheres. Goal setting means allocating tasks to employees based on their individual abilities and the need to achieve results agreed with them. By setting tasks together with the management or receiving them from him, the subordinate receives the program and the goal of his work. Typically, a management by objectives program is a systematic process and follows the following sequence: 1) The manager and the subordinate meet to determine the main tasks of the subordinate and establish a certain number of final tasks / goals. 2) Participants set goals that are realistic to accomplish, stimulating, clear and understandable. 3) The leader, after discussion with subordinates, indicates the time for completing tasks. 4) The dates of meetings and discussion of the results achieved in the process of work are set. 5) The manager and the subordinate make the necessary changes to the original tasks or goals. 6) The manager evaluates the results and meets with subordinates, they discuss the results and give each other advice. 7) The subordinate sets tasks and goals for the next cycle of his work after consultation with the boss, taking into account the experience of the previous cycle and expectations for the future.
Goal Management is a method that makes it possible to improve the results of management activities. There are a number of problems, the solution of which is achieved with the help of management by objectives:
focusing employees on the main goals of the organization,
setting common goals for all,
providing programs and deadlines for the implementation of all goals,
definition of the process of achieving the goals by discussing ways to implement them,
providing the basis for system management wages and a well-founded decision on the system of rewards and punishments, and identifying opportunities to identify the individual abilities of employees and promote them.
«-»: experience shows that when managing by objectives, the attention of managers is concentrated on achieving current and short-term results, often to the detriment of long-term goals. The system does not bring success in a poorly organized and poorly managed enterprise, where it is customary to "lower" goals from above, without involving leaders of other levels in their setting and coordination. It is difficult to use it if there is no information necessary for management, and if the organization of control is unsatisfactory. The management system by goals gives results only where there are appropriate conditions for this.
«+»:
This is, first of all, increasing the efficiency of work due to the fact that each manager has a clear idea of his goals, of the goals of the organization as a whole. Motivation to work increases as a result of the direct participation of all managers, and even employees, in setting and agreeing on goals. Each leader feels a personal interest in achieving them. Of no small importance is the possibility of moving towards the final result in small steps, since the plans set the time frame and clearly articulate the final result. As a rule, when implementing this concept, relationships between managers and subordinates improve, systems for monitoring and evaluating the work of each member of the organization are improved (in accordance with the results achieved).
"Tree of goals" and its practical application.
In any organization, a hierarchy of goals is formed, which is a decomposition of higher-level goals into lower-level goals. A feature of the hierarchical construction of goals in an organization is that, firstly, higher-level goals are always broader in nature and have a longer time interval for achievement. Secondly, lower-level goals act as a kind of means to achieve higher-level goals.
The hierarchy of goals in an organization plays a very important role, since it establishes the structure of the organization and ensures the orientation of the activities of all departments of the organization to achieve the goals of the upper level. If the hierarchy of goals is built correctly, then each unit, achieving its goals, makes the necessary contribution to the activities of the organization to achieve the goals of the organization as a whole. The number and variety of goals and objectives of management are so great that without a comprehensive, systems approach not a single organization can manage to determine their composition, regardless of its size of specialization, type, form of ownership. As a convenient and proven tool in practice, you can use the construction of a target model in the form of a tree of goals.
The goal tree is usually built according to the following principles:
The overall goal at the top of the graph should contain a description of the end result;
When deploying a common goal in a hierarchical structure of goals, it is assumed that the implementation of the subgoals of each subsequent level is a necessary and sufficient condition for achieving the goal of the previous level;
When formulating goals at different levels, it is necessary to describe the desired results, but not how to achieve them;
The subgoals of each level must be independent of each other and not derivable from each other;
The foundation of the goal tree should be tasks, which are a statement of work that can be performed in a certain way and within a predetermined time frame.
The number of decomposition levels depends on the scale and complexity of the goals set, on the structure adopted by the organization, and on the hierarchy of its management.
Topic 6: The nature and composition of management functions.
The concept of management functions. Classification of functions. The content of planning and forecasting functions. Forecasting and its role in the activities of the organization. Types of forecasting. The experience of social forecasting community development. Problems of the effectiveness of social forecasts. Fundamentals of the implementation of the regulation function. The function of the organization as a justification and selection of elements of the managed and managing subsystems. Establishing links between elements of the organization. Organizational forms and management structure. Functional division of managerial labor. Control as a function of management. The universal nature of the control functions.
The need to allocate management functions, separating managerial functions from non-managerial ones is associated with the advantages of activity specialization. First time school scientific management advocated the separation of managerial functions from the actual performance of work. Process approach offered by the school administration, considered management functions as interrelated. Prior to this, the functions were considered as independent of each other. A. Fayol singled out five management functions: "to manage means to predict and plan, organize, dispose, coordinate and control." The allocation of functions is the result of the vertical and horizontal division of labor in the organization.
The management function is a special type of management activity, characterized by a separate set of tasks and carried out by special techniques and methods.
Among main features management functions include the following:
1) uniformity of the content of work performed within the framework of one management function; 2) target orientation of these works; 3) a separate set of tasks to be performed. The management function must have a clearly defined content (a set of actions within the function), an implementation process (a logical sequence of actions carried out within the function) and a structure within which its organizational isolation is completed.
The allocation of management functions has a large meaning. Firstly, the functions of managing the organization, their distribution among the performers determine the structure and staff, fix the vertical division of labor. Any impact on the managed system can be implemented only through the control functions. Thus, a close relationship and interdependence of the structure and functions of management is revealed. Secondly, allocation of management functions helps to improve the management process, generalization and transfer of management experience. Third, the study of management functions gives an understanding of the essence of management activities.
The analysis of management functions makes it possible to systematize knowledge about the dynamics, rates and directions of development, causal relationships and interrelations of functions, reserves for improving their organization. Analysis results - the basis for improvement existing system management.
In the definition of functions, the approach aimed at highlighting general and specific or special, functions. The first are considered as functions that are mandatory for execution in any organizational system, the second - as functions that reflect the specifics of a particular organizational system.
General control functions .
Compound common functions control does not depend on the control object, these functions are performed in relation to all control objects. Nevertheless, it is possible to streamline the existing differences in their classifications: 1) whether or not coordination is distinguished as an independent management function; 2) whether or not connecting processes (decision-making and communication) are distinguished or they act as processes for implementing management functions; 3) whether or not there is no management (leadership) as an independent activity; 4) they name a different number of categories into which management functions are “collected”.
A number of authors distinguish five functions: planning, organization (or organization), coordination, control and motivation. The arrows in the diagram show that the movement from the planning stage to control is possible only by performing work related to organizing the process and motivating employees. In the center of the diagram is the coordination function, which ensures the coordination and interaction of all other functions. However, according to other authors, each function is a coordination activity that is almost impossible to isolate in a limited number of units.
The following can be distinguished features of general control functions :
1. General control functions always are applied in a complex and across the entire spectrum of management activities. In this regard, it is impossible to talk about the greater or lesser importance of certain management functions, since in different situations its various functions may acquire a dominant character;
2. General control functions do not depend on its object because: firstly, they are applicable to any socio-economic processes or systems. So, it is quite legitimate to talk about the control of the experiment, the regulation of traffic, accounting monetary circulation etc.; secondly, the management functions are applicable to the management functions themselves as specialized activities. There is, for example, the concept of organization of control production activities, inventory accounting planning, etc. In this case, the first concept characterizes goal setting, system formation, the second - the meaningful nature of the activity. The organization of control implies, first of all, that control must have certain organizational forms, be characterized by specific structural forms;
3) between control functions no hard, unambiguous boundaries. One and the same type of management activity may show signs of two or even several management functions, their close interweaving. At the same time, in many practical cases, the understanding of management functions as some "technological redistributions" of management activities is extremely important, since the possession of each of the functions requires the formation of certain professional qualities leader. So, professional possession of the control function requires several other qualities from the leader than organizational activity .;
4) in the structure of the activities of managers various levels control functions have different specific weight.
Taking into account the above features, it can be distinguished as the most reasonable classification given by M. Meskon. This book adopts an approach based on grouping significant activities into a small number of categories that are now generally accepted as applicable to all organizations. The authors believe that the management process consists of functions: planning, organization, motivation, control.
The four functions of management - planning, organization, motivation and control - have two common characteristics: they all require decision-making and communication is necessary for all. Because of this, and also because these two characteristics link all four managerial functions, ensuring their interdependence, processes communication and management decision making called bridging processes .
Planning- This continuous process establishing and concretizing the development goals of the entire organization and its structural divisions, determining the means to achieve them, the timing and sequence of implementation, the allocation of resources. Organization how the function of management is aimed at putting the planned plans into practice. The function of the organization = the distribution of work among the staff, the grouping of tasks into logical blocks and the creation of divisions (departments, sectors), coordination of the work of divisions. Motivation is the process of motivating oneself and others to act in order to achieve personal and/or organizational goals. Control= identification of the degree of compliance of current indicators with planned ones. It consists of setting standards, measuring the results obtained and taking the necessary corrective actions.
Specific control functions
Specific control functions are associated with the specifics of the control object. The allocation of specific management functions is necessary for the organization of management, the formation of staff and organizational structure.
Resources, processes and results can act as management objects.
This classification represents an organization as a set of inputs, outputs, and processes for transforming inputs into outputs. You can also consider the imposition of general management functions on the functional areas of management: strategic management, marketing, innovation management, personnel Management, financial management, production management, which stood out in the process of division of labor in management as independent areas of work. This will also give an idea of the totality of specific management functions. With regard to the first classification of specific management functions, resource management functions, process management functions, and results management functions can be distinguished.
Resource management functions. Organizations in the course of their activities use material, labor, financial, information, technological and other resources. Accordingly, specific functions are distinguished: inventory management; financial management; personnel management, etc.
Process control functions. IN any organization runs a lot of processes, ranging from the most general management process to more specific ones: the processes of implementing general management functions, communication processes, decision-making, and the production process. The most important parts of the production process are the supply, production and marketing of products. In accordance with this, specific management functions are distinguished: logistics management; main production management; auxiliary production management; service production management; management improvement; sales management; marketing management, etc.
Results management functions.
The results (outputs / systems) include: profit, profitability, production and sales volumes, costs, product quality, etc. Accordingly, specific functions are distinguished: quality management; performance management; cost management, etc.
Formation of a functional management structure
To implement the mission of the organization, the chosen strategy and achieve the goals, the organizational structure is designed. Organizations create various structures to implement their core functions.
Organizational structure - is a set of management units, between which a system of relationships has been established, designed to ensure the implementation various kinds works, functions and processes to achieve certain goals.
For the effective management of an organization, it is necessary that its structure correspond to the goals and objectives of the enterprise and be adapted to them. The organizational structure creates a kind of framework, which is the basis for the formation of individual administrative functions. The organizational structure can be compared with the skeleton of a living organism - with the basis of the structure that ties together the functioning separate parts of the body. The structure identifies and establishes the relationship of employees within the organization. The structure of the organization also determines the structure of subgoals, which serves as a selection criterion in the preparation of decisions in various parts of the organization. It establishes the responsibility of the departments of the organization for a thorough study of individual elements of the external environment and for the transmission to the appropriate points of information about events that require special attention.
Functional organizational structures . Functional organizational structures are based on functional departmentalization. The organization has departments of finance, marketing, personnel. These structures stimulate business and professional specialization, reduce duplication of effort and resource consumption in functional areas with better coordination in them. The functional structure is not suitable for organizations with a wide variety of products, as well as when the organization operates in global markets, since there is a real possibility that the interests of any unit will diverge from the interests of the organization itself.
The disadvantage of functional structures is the violation of the principle of unity of command. An executor may receive instructions through several channels from different managers. In its purest form functional structure practically not applied.
functional the structure ensures the division of the control task "by function". Staffs can be created in the central and other government bodies, forming a staff hierarchy. This management structure is characterized by:
High centralization of strategic decisions and decentralization of operational,
Organization of directive relations on a one-line principle,
The predominant use of instruments of coordination with technical support. In theory, the headquarters should give consultations and participate in the preparation of decisions, but not give specific directives. However, due to their professional competence, their employees often have a strong informal influence on line managers. If they perform only an advisory function, then there is a risk that their work has little effect on the course of production processes.
The structure has the following advantages :
Provides high professional specialization of employees,
Allows you to accurately determine the places of decision-making and necessary resources(personnel),
Promotes standardization, formalization and programming of management processes. Flaws:
Education specific to functional divisions goals makes it difficult to harmonize horizontally,
The structure is rigid and difficult to respond to change.
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Introduction
Chapter 1
Conclusion
Bibliography
goal organization alternative
Introduction
No organization can successfully survive in a competitive environment if it does not have clearly defined guidelines, directions that set what it aspires to, what it wants to achieve in its activities. The goal principle in the activity of an organization arises by no means only because it needs to have guidelines so as not to perish in a changing environment. First of all, the target principle in the activity of an organization arises because an organization is an association of people pursuing certain personal goals.
People create organizations in order to solve their problems with their help. This means that from the very beginning the organization has a certain goal orientation. People enter organizations in order to get a certain result for themselves. And it also gives the organization a certain goal orientation. Finally, people from the external environment (customers, the public, business partners etc.) as well as those who are the owners of the organization or work in the organization, pursuing their own goals when interacting with the organization, they give its existence a certain direction and thereby develop the target principle in the organization's activities.
When in question about the target beginning in the behavior of the organization and, accordingly, about the target beginning in the management of the organization, then they usually talk about two components: mission and goals. The establishment of both, as well as the development of a behavior strategy that ensures the fulfillment of the mission and the achievement of the organization's goals, is one of the main tasks of top management and, accordingly, is a very important part of strategic management.
Chapter 1
1.1 The concept of the purpose of the organization, the main characteristics of the goal
The goal is the desired state of the system or the result of its activity, achievable within a certain time interval. The goals should reflect the development perspective of the system. The goals of the activity of socio-economic systems are largely determined by the conditions of the external environment.
Objectives represent the commitment of the management apparatus of the company to achieve certain results in certain time. They explain exactly how much, what and by what time to be done. They direct attention and energy to what needs to be achieved.
The importance of goals to an organization cannot be overemphasized. They are the starting point for planning; goals underlie the construction of organizational relationships; the motivation system used in the organization is based on the goals; finally, the goals are the starting point in the process of monitoring and evaluating the results of the work of individual employees, departments and the organization as a whole.
Experience convincingly shows why goal setting is a critical element of strategic management: companies whose managers develop goals for everyone key indicator activities and then take vigorous action to achieve targets, are serious candidates for victory in competition with companies whose managers use terms such as hope, hope and expectation of success.
For goals to have managerial value, they must be defined in quantitative and measurable terms and contain limit values that need to be achieved. This implies that language such as "maximizing profits", "reducing costs", "improving efficiency", "increasing sales" should be avoided, which do not define either quantitative or temporal boundaries. Setting goals - a guide to action: what results and when to achieve and who is responsible for this. Organizational Goal Scopes
There are eight key spaces within which an organization defines its goals.
Market position. Market goals may be gaining leadership in a particular market or segment, increasing the company's market share, strengthening the competitive status of the company.
Innovation. Targets in this area are associated with the definition of new ways of doing business, the development of the production of new products, the use of new technologies.
Performance. More efficient is the enterprise that ensures the production of products at a lower cost. For any enterprise, such indicators as labor productivity, energy intensity, resource saving are important.
Resources. The need for all types of resources is determined and goals are formulated regarding the expansion or reduction of the resource base, ensuring its stability, reducing the dependence of the enterprise on one source of raw materials.
Profitability, these goals are associated with achieving a certain level of profitability, ensuring a given level of profit, as a rule, are quantified.
Management aspects. Security effective management- the goal of any organization that focuses on the long term. Recruitment of outstanding managers, formation of an appropriate organizational culture, the creation of management systems for activities in unforeseen situations are just some of the factors that affect the effectiveness of the management process.
Staff. Goals in relation to personnel may be related to maintaining jobs, ensuring a certain level of remuneration, improving working conditions and motivation, reducing staff turnover, and raising the level of qualifications.
Social responsibility. Currently, most economists recognize that individual firms must focus not only on increasing profits, but also on the development of generally accepted values. This idea is also the basis of the concept of social and ethical marketing, which has become widespread in recent years. Being open system, the company must maintain contact with its environment, taking into account its influence and influencing it to create a favorable image of the company.
Target characteristics.
A very important point in ensuring the effective management of an organization is the combination of the goals of the organization and the personal goals of a person. A clear understanding of the goal, the development by a person of his life program that does not contradict the goals of the company, is one of the main points in effective management. People who do not know what to devote themselves to, what goal to achieve. Like a fluff, flying at the behest of the wind, first in one direction, then in the other. With such performers, even the ideally formulated goals of the organization are unlikely to be achieved.
A clearly defined goal is an important benchmark against which to evaluate the results achieved and on which all attention should be focused. The goal is always forecasting, anticipation of the future, orientation towards reaching new, yet unknown heights of development. The great Italian thinker Nicolo Machiavelli said: “You should aim for more in order to achieve less.”
At the same time, the system of goals should take into account the real capabilities of the organization and the individual. The criterion "difficult but achievable" is important here, as nowhere else in the management process. Goals should be mobilizing, but at the same time realistic. They should focus on the end result, but not require employees to permanent job in conditions of lack of time, lack of experience, knowledge and resources. If we plan practically unattainable goals, both the organization and the person can be deeply disappointed. What can be done in an extreme situation will never be the norm of everyday life. The concentration of all the forces and resources of the organization and their direction to achieve them to achieve any goal is possible only with a decisive breakthrough, with the gaining of competitive positions. Everyday work should not be extreme, it should involve evolution, not leaps and bounds.
Goals are a benchmark for assessing what has been achieved. The art of goal setting is the art of management. Without clearly formulated goals, there is no and cannot be effective control over the activities of the organization.
The art of management consists in the ability to choose from the many important and urgent tasks surrounding us those goals that are of the highest priority, the achievement of which will ensure sustainable development organizations.
Formulating goals and making them the meaning of the life of the organization, the leader must be extremely careful and cautious, constantly asking himself the question: “What will happen if this is not done?” an incorrectly set goal can bring a lot of harm, it can cause bankruptcy and death of the organization.
1.2 Classification and significance of the goals of the organization. Goal Requirements
The diversity of goals is explained by the fact that any organization, any economic system are multipurpose. Determining the priority of goals in this case is a very important and complex problem and, as a rule, is solved by an expert.
Strategic and financial goals
The goals of the organization are different types. One approach involves dividing goals into strategic and financial ones.
Although the financial and strategic goals have the highest priority, as they are aimed at achieving key results. The difficulty arises when the situation forces one to make a choice between actions associated with an increase in short-term financial indicators, and efforts to strengthen the position of the firm in the long term. Managers with good financial foresight often focus on short-term financial performance, neglecting long-term measures and new markets. This is especially true in situations where the company has low financial performance. If the company has achieved good financial results enough to survive the financial crisis, the importance of solving the problems of strengthening the competitive position of the company in the long term exceeds the need to increase financial performance in the short term. A company that consistently misses out on opportunities to strengthen its competitive position in the long term (instead opting for immediate financial improvement) risks undermining its competitiveness by losing momentum in the market, reducing its ability to compete with its more ambitious competitors.
Strategic Goals companies are important for another reason - they describe the strategic intention of the company - the desire to occupy a certain place in the business. strategic intent big company may be winning a leading position in the industry at the national or global level. strategic intent small company may be achieving dominance in a particular market niche. For a newly created enterprise, the strategic intention may be to be recognized as promising.
Trajectory and point targets
Another approach involves the allocation of trajectory and point targets. Trajectory goals presuppose the determination of the general direction of development; they reflect the most general (systemic) issues. Point goals are formulated taking into account the achievement of a specific end result.
Long-term and short-term goals
Trajectory and point goals are closely linked to the concept of long-term and short-term goals. As a rule, trajectory goals are long-term, and point goals are short-term. Although the latter can be formulated for the long term.
The purpose of the organization is closely related to the length of the period for which it is expected to achieve it. The larger the set goal, the longer it can be achieved. Conversely, the longer the time interval is considered, the larger the goal for it can be set.
Final and intermediate goals
Any time interval can be divided into separate periods, and for each of them its own goal can be determined. Obviously, these goals should be interconnected, although the planning of work for each period is carried out sequentially. The ultimate goal is one that cannot be achieved in the planned period of time, but it is necessary and possible to achieve it in the future for a longer period. For the planned period ultimate goal you can get close. All goals, the consistent achievement of which ensures the achievement of the final goal, are called intermediate.
Goals of different levels of management
There may be goals of different hierarchical levels of management. The corporate goal or goal of the zero level is called the general goal. Next come the goals of the first, second, and so on. levels. This representation of goals is called a goal tree. It should be noted that it is not always possible to single out only one general goal. They may be on corporate level some.
Goals belonging to the same level can be mutually neutral, cooperate or compete with each other.
Management actions necessary for the implementation of mutually neutral goals do not intersect and do not depend on each other.
In the case of cooperating goals, the managerial actions necessary to achieve them reinforce each other, so that one of them contributes to the implementation of the other. Often there are situations when the achievement of one of the goals ensures the achievement of another, cooperating with it.
In the case of competing goals, the achievement of one of them may mean the abandonment of the other. This is the case, for example, if goals can only be achieved using the same limited resource.
Goals and action options
A rather important point in the formulation of goals is the relationship between the concepts of "goal" and "alternative".
It is very often difficult to determine whether we are dealing with a goal or an alternative to an action. From the point of view of different subjects, the same phenomenon is evaluated differently. An important role is played here by the circumstance at which level of the hierarchical structure of management the subject is located. For example, the board of directors of a corporation sets a goal for one of the enterprises - to intensify production, but the enterprise, from the point of view of its narrow interests, may have specific goals, for the achievement of which the intensification of production is only one possible (and not always the most profitable) alternative action.
The interrelationship and interdependence of the categories of goals and alternatives can be more clearly illustrated using the decision tree method, which involves the development of options for achieving the goals of different levels of the goal tree, while the tree of goals can always be developed to such a degree of detail that at the last level there are tasks that can no longer be considered as goals.
The goal to a certain extent is formed on the basis of an analysis of the means and possibilities of action available to the subject of management. It must ensure that, as far as possible, the full use of all means is sought. Goals that don't fit this requirement, are too low or narrow for a given controlled process. Organizations should strive to set goals that would ensure the use of all available opportunities.
Mutually Supportive Goals
To be effective, the multiple goals of an organization must be mutually supportive, i.e. actions and decisions necessary to achieve one goal should not interfere with the achievement of other goals. For example, a goal of maintaining inventory at 1% of sales would not be sufficient for most firms to ensure that all orders are completed within two weeks. The inability to make the goals mutually supportive leads to conflict between the organizational units that are responsible for achieving the established goals.
Objectives will only be a meaningful part of the strategic management process if top management articulates them correctly, then institutionalizes them effectively, communicates them, and drives their implementation throughout the organization. The strategic management process will be successful to the extent that senior management is involved in goal setting and to the extent that these goals reflect the values of the firm's management and implementation.
As stated earlier, goals are essential to the successful operation and long-term survival of an organization. However, if the goals are incorrect or poorly defined, this can lead to very serious negative consequences for the organization.
First, goals must be achievable. Of course, the goals must contain a certain challenge for the employees of the organization. They shouldn't be too easy to achieve. But they also should not be unrealistic, going beyond the maximum allowable capabilities of the performers. An unrealistic goal to achieve leads to demotivation of employees and their loss of direction, which has a very negative impact on the organization's activities.
Second, goals must be flexible. Goals should be set in such a way that they leave room for adjustment in accordance with the changes that may occur in the environment. Managers must keep this in mind and be prepared to modify the set goals to meet the new requirements placed on the organization by the environment, or new opportunities that have appeared in the organization.
Third, goals must be measurable. This means that the goals should be formulated in such a way that they can be quantified or some other objective way to assess whether the goal has been achieved or not. if the goals are immeasurable, then they give rise to disagreements, complicate the process of evaluating performance and cause conflicts.
Fourthly, the goals must be specific, having the necessary specificity, which helps to unambiguously determine in which direction the organization should operate. The goal should clearly fix what needs to be obtained as a result of the activity, in what time frame it should be achieved and who is responsible for achieving the goal. The more specific the goal, the easier it is to express a strategy to achieve it. If the goal is formulated specifically, then this makes it possible for all or the vast majority of the employees of the organization to easily understand it, and therefore know what lies ahead for them.
Fifth, goals must be compatible. Compatibility implies that long-term goals are consistent with the mission, and short-term goals are long-term. But temporal compatibility is not the only way to establish compatibility of goals. It is important that there are no conflicting goals related to profitability and to establishing a competitive position, or the goal of strengthening a position on existing market and goals of penetrating new markets, profitability and philanthropy. It is also important to always remember that compatibility is required for the purpose of growth and the purpose of maintaining stability.
Sixth, the goals must be acceptable to the main actors of influence that determine the activities of the organization, and first of all to those who will have to achieve them. When formulating goals, it is very important to take into account what desires and needs employees have. Taking into account the interests of the owners. Occupying a leading role among the subjects of influence on the organization and interested in making a profit, the manager should nevertheless try to avoid focusing on obtaining large short-term profits when developing goals. He should strive to set goals that would provide a large profit, but preferably in the long run.
Goal setting
The process of setting goals varies from organization to organization. In some organizations goal setting is completely centralized, while in other organizations there may be complete decentralization. There are organizations in which the goal-setting process is intermediate between full centralization and full decentralization. Each of these approaches has its own specifics, advantages and disadvantages. So, in the case of complete centralization in setting goals, all goals are determined by the highest level of management of the organization. With this approach, all goals are subject to a single orientation. This is a definite advantage. At the same time, this approach has significant drawbacks, the essence of one of which is that at the lower levels of the organization there may be unpleasant goals and even resistance.
In the case of decentralization, in the process of setting goals, along with employees of the upper level, employees of lower levels of the organization also participate. There are two schemes for decentralized goal setting. With one - the process of setting goals goes from top to bottom. The decomposition of goals occurs as follows: at each of the lower levels in the organization, their goals are determined, based on what goals were set for a higher level. The second scheme suggests that the goal-setting process proceeds from the bottom up. In this case, the lower links set goals for themselves, which serve as the basis for setting goals for a subsequent, higher level.
As can be seen, for different approaches to setting goals, there are significant differences. However general requirement to setting goals is that the decisive role in all cases should belong to the management.
From the point of view of the logic of the implementation of actions performed when setting goals, it can be considered that the goal-setting process in an organization consists of three successive stages. At the first stage, the results of the analysis of the environment are comprehended, at the second - the development of an appropriate mission, and, finally, at the third stage, goals for the organization are directly developed. Consider the process of direct development of goals for the organization.
A well-organized process of developing goals involves the passage of four phases:
Identification and analysis of those trends that are observed in the environment;
Setting goals for the organization as a whole;
Building a hierarchy of goals;
Setting individual goals.
First phase.
The influence of the environment affects not only the establishment of the mission of the organization. Goals are also highly dependent on the state of the environment. Earlier, when discussing the requirements for goals, it was said that they should be flexible so that they can be changed in accordance with changes in the environment. However, one should not conclude from this that goals should be tied to the state of the environment only by constant adjustment and adaptation to the changes that occur in the environment. With the right approach to setting goals, management should strive to anticipate what state the environment will be in and set goals in accordance with this foresight. To do this, it is very important to identify trends characteristic of the processes of development of the economy, social and political spheres, science and technology. Of course, it is impossible to foresee everything correctly. Moreover, sometimes there may be changes in the environment that do not follow from the detected trends. Therefore, managers must be ready to respond to the unexpected challenge that the environment may throw at them. Nevertheless, without absolutizing situations, they must formulate goals in such a way that situational components are reflected in them.
Second phase.
When setting goals for the organization as a whole, it is important to determine which of the wide range of possible characteristics of the organization's activities should be taken as a basis. Next, a certain toolkit for quantitatively calculating the value of goals is selected. Of particular importance is the system of criteria used in determining the goals of the organization. Usually these criteria are derived from the mission of the organization, as well as from the results of the analysis of the macro-environment, industry, competitors and the position of the organization in the environment. When setting goals for the organization, it takes into account what goals it had at the previous stage and how the achievement of these goals contributed to the fulfillment of the mission of the organization. Finally, the decision on goals always depends on the resources that the organization has.
Third phase.
The establishment of a hierarchy of goals involves the definition of such goals for all levels of the organization, the achievement of which by individual units will lead to the achievement of corporate goals. At the same time, the hierarchy should be built on both long-term and short-term goals.
Fourth phase.
In order for the hierarchy of goals within the organization to acquire its logical completeness and become a real instrument for achieving the goals of the organization, it must be communicated to each individual employee. In this case, one of the most important conditions for the successful operation of the organization is realized: each employee, as it were, is included through the personal goals set for him in the process of joint achievement of the ultimate goals of the organization. Employees of the organization in such a situation get an idea not only of what they have to achieve, but also of how the results of their work will affect the final results of the functioning of the organization, how and to what extent their work will contribute to the achievement of the goals of the organization.
The goals set must have the status of law for the organization, for all its divisions and for all members. However, their eternity and immutability do not follow from the requirement that goals be mandatory. It has already been said that, due to the dynamism of the environment, goals can be changed. You can approach the problem of changing goals as follows: goals are adjusted whenever circumstances require it. In this case, the process of changing goals is purely situational. But many organizations take a systematic, proactive approach to changing goals. With this approach, the organization sets long-term goals. Based on these long-term goals, detailed short-term goals (usually annual) are developed. Once these goals are achieved, new long-term goals are developed. At the same time, the goals take into account those changes that occur in the set and level of requirements put forward in relation to the organization by the subjects of influence. On the basis of new long-term goals, short-term goals are determined, upon reaching which new long-term goals are again developed. With this approach, the initially defined long-term goals are not achieved, as they change regularly. At the same time, a long-term target orientation is constantly present in the activities of the organization and the course is regularly adjusted taking into account emerging new circumstances and opportunities.
1.3 Building a "Tree of Goals" and implementing a system of goals
First stage. Development of goals of structural divisions.
The success of the entire long-term plan of the company depends on the correct development of the goals of structural divisions. The implementation of these goals is more development-oriented than results-oriented.
Essence of Execution this stage lies in the fact that goals should be formulated at each level of management, primarily horizontally. Based on the fact that all real organizations are multipurpose, at this stage, at each level of management, all the goals of the chosen strategy should be formulated. On the other hand, the main goals must be chosen, for which the organization is to be designed.
To coordinate the selected goals, it is also necessary to evaluate them vertically (as the source material for building a tree of goals).
Second phase. Bringing the selected goals to the subdivisions is the rationale for building a tree of goals.
The essence of this stage is to identify interdependent goals that are implemented at each level of management. As a result of such work, it is possible to build a tree of goals (see Appendix 1). It is a structural display of the distribution of goals by levels of management of the organization in question and their relationship. By means of the goal tree, their ordered hierarchy is described, for which the main goal is sequentially decomposed into subgoals according to the following rules:
The overall goal, located at the top of the neck, should contain a description of the end result.
When deploying a common goal into a hierarchical structure of goals, based on the fact that the implementation of subgoals of each subsequent level is a necessary and sufficient condition for achieving the goal of the previous level.
When formulating goals at different levels, it is necessary to describe the desired results, but not how to achieve them.
The sub-goals of each level must be independent of each other and non-derivable from each other.
The foundation of the tree of goals should be tasks, which are the formulation of work that can be performed in a certain way and within a predetermined time frame.
The number of decomposition levels depends on the scale and complexity of the goals set, on the structure adopted in the organization, on the hierarchy of building its management.
The tree of goals is built for each level of management, and then the tree of goals of each level is “stitched” into the overall tree of goals of the organization.
Third stage. Bringing goals to each specific performer.
At this stage, first of all, the possibility of implementing the previously formulated goal by a specific contractor is clarified. In some cases, to understand necessary activities the selected goals will need to be detailed. Only after establishing the consistency of the system of goals and specific activities, it can be argued that the selected goals are communicated to each specific performer.
Real work in this direction involves a broad discussion of all goals at production meetings.
Fourth stage. Realization of goals.
This stage includes:
Setting goals for each performer;
Identification of the availability of all resources necessary to achieve the goals;
Establishing a schedule for the necessary work;
Monitoring the implementation of goals in the entire management system from top to bottom;
Timeliness of intervention in the management process at any level of management.
Fifth stage. Evaluation of the achieved results.
Evaluation of the results achieved should be made from the bottom up with access to global goals. Discussion of the results should be carried out informally, taking into account the views of the organization's employees. Sometimes special questionnaires are developed for this purpose, which are processed taking into account the theory expert assessments. The results of processing are brought to each level of management several times, discussed and re-processed until full agreement is obtained.
Sixth stage. Goal adjustments.
Goals are adjusted after identifying the degree of progress in achieving the goals set, i.e. taking into account the achievement of goals, the previously selected goals are adjusted. In practice, this means the end of the goal-setting cycle.
The goals of the organization describe the specific state of individual parameters that should be achieved after a certain period of time. Goals are long term and short term. Goals also differ by spheres of life of the organization and levels of hierarchy. Goals must meet some mandatory requirements. They must be achievable, flexible, measurable, specific, compatible and acceptable.
Setting goals involves going through four mandatory phases:
identification and analysis of trends observed in the environment;
setting common goals for the organization;
building a hierarchy of goals;
setting individual goals.
Conclusion
The effectiveness of the organization depends on how well the goals are set. The art of goal setting also determines the art of management. An incorrectly formulated goal can bring a lot of harm, it can cause bankruptcy and the death of an organization, so it is very important to know what goals are and how they should be formulated.
The classification of goals according to various typological features contributes to the development of more informed management decisions: after all, it is impossible to require employees to achieve a strategic goal in one day, as well as to move towards an intermediate goal in small steps.
When developing the goals of the organization, it should be borne in mind that they must be specific, measurable, time-bound and achievable. By fulfilling these requirements when setting goals, we get the opportunity to effectively control the implementation of the strategy.
Goal setting is a process that goes from top to bottom through the levels of the management hierarchy. It should be remembered that the goal must be understood, realized by subordinates, since, without understanding where to go, the employee is unlikely to choose the right path.
Also, the effectiveness of the organization depends on the existence of the correct mission of the organization. The formulation of the mission is very important for the company's activities, as it serves as the basis for determining the financial and strategic goals of the company. Quite difficult to evaluate direct economic effect from the formulated mission, however, the importance of this stage is also manifested in the fact that the mission helps to form and maintain a unified corporate spirit, serves as the basis for the effective management of the organization, reduces the risk of making unreasonable decisions and reduces the likelihood of short-sighted management errors.
The mission is developed for the company as a whole, individual enterprises, functional and operational divisions. The mission is developed by the top management and employees of the company.
Bibliography
Management O.S. Vikhansky, A.I. Naumov. 4th ed., revised. and add.-M.: The Economist, 2005-670 p.
2. Utkin E. A., Kochetkova A. I. Personnel management in small and medium business. - M.: Akalis, - 1996. 138s.
Kardanskaya N.A. Adoption management decision. - M.: UNITI, 2001.-407p.
Thomson Jr. A.A. Strategic management: per. from English. / A.A. Thomson Jr., J. Strickland. Williams, 2003.
Vikhansky O.S. Strategic management. M.: Gardariki, 2001.
Organization Management: Textbook / Ed. A.G. Porshneva, Z.P. Rumyantseva., N.A. Salomatina. - 2nd ed., revised. and additional - M.: INFRA-M, 1998.
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Determination of the mission of the corporation, the goals of the organization, properties and requirements for goals, analysis of goals and organizational systems, methods for forming goals. Target tree method. Constructor of evaluation procedures. Projection of the tree of goals into the tree of indicators.
In management, the goal is understood as the ideal or desired state of the control object.
Goal setting steps:
determination of the list of principally possible goals;
narrowing down the list to a more specific list of real goals;
selection of one goal and its formation;
identification of subgoals, their formation and setting as targets.
Target classification:
According to the sources of the goal can be divided into:
- 1.1. External goals are set by the official management, are formed by the expectations of potential partners, consumers of products, and take into account the needs of the social community within which the organization operates.
- 1.2. Internal goals - the goals of the team itself predetermine the satisfaction of the needs of its members.
- 2. According to the complexity of the goals are divided into:
- 2.1. Simple.
- 2.2. Complex ones, which in turn are transformed into subgoals.
- 3. Degrees of importance of the goal are divided into:
- 3.1. Strategic goals focus the solution of long-term tasks that qualitatively change the values of the organization, for example, taking a leading position in its activity profile.
- 3.2. Tactical goals are aimed at solving individual strategic stages, for example, modernization certain types equipment. They are designed to solve the goals of the annual Plan (operational) and the current task (operational).
- 4. According to the validity period, the goals are divided into:
- 4.1. Long-term (over five years).
- 4.2. Medium term (one to five years).
- 4.3. Short term (up to one year).
- 5. According to the content of the goal are divided:
- 5.1. Technological goals include automation processes, equipping the manager’s workplace with intellectual technology, technical re-equipment of existing and new construction of production facilities.
- 5.2. Economic goals may be the preservation and maintenance of all financial resources at the required level.
- 5.3. Production goals can be expressed in achieving the level of labor productivity in the production of all (or individual) types of products.
- 5.4. Administrative goals can define critical areas of managerial influence and priority tasks that ensure the achievement of intended results, reliable interaction between employees, and their proper discipline.
- 5.5. Marketing goals are associated with determining the needs of the population and production for the products and services of the enterprise, conquering segments of sales markets, maintaining and winning leadership in prices, etc.
- 5.6. Scientific and technical goals are associated with the development and introduction of new types and improvement of manufactured product samples, gaining leadership in introducing new types to the market, using a certain percentage of profit for these purposes.
- 5.7. Social goals are guided by the establishment of favorable working conditions, life and rest of workers, raising their professional level, etc.
- 6. From the point of view of priority, the following goals are distinguished:
- 6.1. Necessary goals, the implementation of which proportionally affects the performance results.
- 6.2. Desirable, the implementation of which will allow, to a certain extent, to obtain guarantees.
- 6.3. Possible goals that in a given period essentially do not change anything.
- 7. According to the form of expression of the goal, there are:
- 7.1. characterized quantitative indicators, for example, the volume of production in rubles, tons, pieces.
- 7.2. Described qualitatively - improvement of the oral-psychological climate in the team.
- 8. In terms of goal levels, there are:
- 8.1. Common goals are formed on the basis general idea, philosophies, i.e. the missions of the organization, reflect the most important areas of activity of the entire team and can be integral and functional.
- 8.2. Specific goals are developed in each unit and determine the main directions of its activities based on the settings of general goals.
As a result, an ordered and balanced system of goals and a mechanism for its constant updating are formed. In practice, the mechanism used is the construction of the target model in the form of a tree graph - a tree of goals.
Goals should be specific and measurable, which allows them to be expressed not only qualitatively, but also in quantitative terms.
Goals must be realistic, consistent with material and human resources.
Goals should be flexible, capable of transformation and adjustment.
If the mission sets general guidelines, directions for the functioning of the organization, expressing the meaning of its existence, then the specific final state that the organization strives for at each moment of time is fixed in the form of its goals. In other words,
Strategic goals - specific results and achievements, distributed over time, which are necessary for the implementation formulated in the mission.
Goals are a specific state of individual characteristics of the organization, the achievement of which is desirable for it and to which its activities are directed.
The importance of goals for an organization cannot be overestimated.
The goals are the starting point for planning activities, the goals underlie the construction of organizational relations, the motivation system used in the organization is based on the goals, and finally, the goals are the starting point in the process of monitoring and evaluating the results of the work of individual employees, departments and the organization as a whole.
Depending on the period of time required to achieve them, the goals are divided into long-term And short-term.
In principle, the division of goals into these two types is based on the time period associated with the duration of the production cycle.
The goals, which are expected to be achieved by the end of the production cycle, are long-term. It follows that in different industries there should be different time periods to achieve long-term goals. However, in practice, goals that are achieved within one to two years are usually considered short-term, and, accordingly, goals that are achieved in three to five years are considered long-term.
The division of goals into long-term and short-term is of fundamental importance, since these goals differ significantly in content. Short-term goals are characterized by a much greater specification and detail (who, what and when should perform) than long-term goals. Sometimes, if the need arises, intermediate goals are also set between long-term and short-term goals, which are called medium-term.
Goal Requirements
Goals are essential to the successful operation and long-term survival of an organization. However, if the goals are incorrect or poorly defined, this can lead to very serious negative consequences for the organization.
The purpose of the organization is its future desired state, the motive for the behavior and actions of its employees. Unlike the mission, the goals express more specific directions of the enterprise.
Doran created the SMART GOAL checklist (see Table 2.1) which is very helpful in setting goals.
Table 2.1 - CHARACTERISTICS OF GOALS
The goals of each level reflect the overall goal, and the lower the level, the more detailed the goals.
The goals of the organization are formulated and established on the basis of the overall mission and certain values and goals that top management is guided by. To truly contribute to the success of an organization, goals must have a number of characteristics.
First, goals should be specific and measurable. By expressing its goals in specific, measurable terms, management creates a clear baseline for future decisions and progress. It will be easier to determine how well the organization is working towards achieving its goals.
Second, goals must be time oriented. Not only must the organization specify exactly what the organization wants to accomplish, but also when the result is to be achieved. Goals are usually set for long or short time periods. Long-term goal, has a planning horizon of approximately five years, sometimes more for technologically advanced firms. The short-term goal in most cases represents one of the plans of the organization, which should be completed within a year. Medium-term goals have a planning horizon of one to five years.
Third, goals should be achievable to serve to improve the efficiency of the organization. Setting a goal that lowers an organization's capabilities due to lack of resources or external factors can be disastrous. If the goals are unattainable, the desire of employees to succeed will be blocked and their motivation will weaken. Since it is common in everyday life to associate rewards and promotions with the achievement of goals, unattainable goals can make the means used in an organization to motivate employees less effective.
Fourth, to be effective, the organization's multiple goals must be mutually supportive, i.e. actions and decisions necessary to achieve one goal should not interfere with the achievement of other goals.
Goal Setting Directions
Depending on the specifics of the industry, the characteristics of the state of the environment, the nature and content of the mission, each organization sets its own goals, which are special both in terms of a set of organization parameters, the desired state of which acts as the goals of the organization, and in the quantitative assessment of these parameters.
Goals will only be a meaningful part of the strategic planning and management process if top management sets them right, then communicates them to everyone in the organization and encourages their implementation. The strategic planning and management process will be successful to the extent that senior management is involved in the formulation of goals, and to what extent these goals reflect the values of management and the real capabilities of the firm.
Key spaces for defining organizational goals are presented in Table 9.1.
Strategic planners have come to the consensus that financial goals are the most important. Profit occupies a leading position in the hierarchy of goals of a commercial organization.
Goals are always achieved under certain restrictions, which can be set by the organization itself and act from the outside.
Internal constraints may be the principles of the firm, the level of costs, production capacity, financial resources, the state of marketing, management capacity, etc.
External restrictions can be legislative norms, inflation, competitors, changes in the economic situation and the level of income of the population, the financial condition of the main partners and debtors, etc.
However, despite being situational in fixing a set of goals, there are four areas in which organizations set their goals:
1) income of the organization;
2) work with clients;
3) the needs and welfare of employees;
4) social responsibility.
As can be seen, these four areas relate to the interests of all entities influencing the activities of the organization, which were discussed earlier when discussing the mission of the organization.
The most common areas for which goals are set in business organizations are as follows.
1. In the area of income:
Profitability reflected in indicators such as profit margin, profitability, earnings per share, etc.;
Market position, described by indicators such as market share, sales volume, market share relative to a competitor, the share of individual products in total sales, etc.;
Productivity, expressed in costs per unit of production, material consumption, in the return per unit of production capacity, the volume of products produced per unit of time, etc.;
Financial resources, described by indicators characterizing the structure of capital, the movement of money in the organization, the value working capital and so on.;
The capacity of the organization, expressed in terms of target indicators regarding the size of the capacity used, the number of pieces of equipment, etc.;
Development, production of a product and updating of technology, described in terms of such indicators as the amount of costs for the implementation of research projects, the timing of the introduction of new equipment, the timing and volume of product production, the timing of bringing a new product to the market, the quality of the product, etc.
2. In the field of work with clients:
Customer service expressed in terms of speed of customer service, number of complaints from customers, etc.
3. In the field of work with employees:
Changes in the organization and management, reflected in indicators that set targets for the timing of organizational changes, etc.;
Human resources, described using indicators that reflect the number of work absences, staff turnover, employee training, etc.
4. In the field of social responsibility:
Providing assistance to society, described by such indicators as the amount of charity, the timing of charity events, etc.
The main idea and entrepreneurial philosophy are necessary to establish the strategic goals of the owners of the organization, its managers, employees, as well as to win the trust of customers and other stakeholders so that there is no conflict of their interests. The correct definition of goals is a global prerequisite for the successful development of a management strategy at any level.
Not only the message, entrepreneurial philosophy and main idea are used to form strategic goals. Extremely important sources of information are data on the internal and external environment, expected market dynamics, competition, and other factors (see Figure 2.2).
Figure 2.2 - The process of formulating and monitoring strategic goals
Hierarchy of goals ("tree of goals")
In any large organization that has several different structural units and several levels of management, it develops hierarchy of goals, which is a decomposition of higher-level goals into lower-level goals. The specifics of the hierarchical construction of goals in the organization is due to the fact that:
Higher level goals are always broader in nature and have a longer time frame to achieve;
Lower-level goals act as a kind of means to achieve higher-level goals.
For example, short-term goals are derived from long-term ones, they are concretized and detailed, "subordinate" to them and determine the organization's activities in the short term. Short-term goals, as it were, set milestones on the way to achieving long-term goals. It is through the achievement of short-term goals that the organization moves step by step towards achieving its long-term goals.
Based on a large number of enterprise goals, their individual nature and complex relationships, a special model is used to analyze them - the goal tree model.
To build such a model, goal statements should consist of the following elements:
The scope of the goal (to what extent should the goal be achieved?);
Target deadline (How long does it take to reach the target?).
The goal structuring method provides for a quantitative and qualitative description, timing of achievement and analysis of hierarchically distributed interrelated and interdependent goals of strategic management.
Structured goals are often presented graphically in the form of a "tree" of goals, showing the links between them and the means to achieve them.
The construction of such a "tree" is carried out on the basis of deductive logic using heuristic procedures. It consists of goals of several levels: general goal - main goals (sub-goals of the 1st level) - goals of the 2nd level - sub-goals of the 3rd level, and so on up to the required level.
To achieve the general goal, it is necessary to realize the main goals (in essence, these goals act as a means in relation to the higher goal); to achieve each of the main goals, it is required to implement, respectively, their more specific goals of the 2nd level, etc.
Usually, classification, decomposition and ranking procedures are used to build a "tree" of goals. Each subgoal should be characterized by a coefficient of relative importance. The sum of these coefficients for subgoals of one goal should be equal to one.
Each level of goals (subgoals) should be formed according to a certain sign of the decomposition of the process of achieving them, and any goal (subgoal) should preferably be attributed to an organizationally separate unit or executor.
The hierarchy of goals plays a very important role, as it establishes the "connectivity" of the organization and ensures the orientation of the activities of all departments towards achieving the goals of the upper level. If the hierarchy of goals is built correctly, then each department, achieving its goals, makes the necessary contribution to achieving the goals of the organization as a whole.
In conclusion, the main differences between the mission and goals of the organization can be noted (table 9.2).
The goals set must have the status of law for the organization, for all its divisions and for all members. However, immutability does not follow from the requirement of obligatory goals. It was already mentioned earlier that, due to the dynamism of the environment, goals can change. It is possible to approach the problem of changing goals in the following way: goals are adjusted whenever circumstances require it. In this case, the process of changing goals is purely situational.
But another approach is possible. Many organizations implement a systematic, proactive goal change. With this approach, the organization sets long-term goals. Based on these long-term goals, detailed short-term goals (usually annual) are developed. Once these goals are achieved, new long-term goals are developed. At the same time, they take into account the changes that occur in the environment, and those changes that occur in the set and level of requirements put forward in relation to the organization by the subjects of influence. On the basis of new long-term goals, short-term goals are determined, upon reaching which new long-term goals are again developed. With this approach, long-term goals are not achieved, as they change regularly. However, there is always a long-term target orientation in the activities of the organization and the course is regularly adjusted taking into account emerging new circumstances and opportunities.
One of the most important points that determine the process of setting goals in the organization is the degree of delegation of decision-making power on goals to the lower levels of the organization. As familiarity with real practice shows, the process of setting goals in different organizations takes place in different ways. In some organizations, goal setting is completely or largely centralized, while in other organizations there may be complete or almost complete decentralization. There are organizations in which the goal-setting process is intermediate between full centralization and full decentralization.
Each of these approaches has its own specifics, advantages and disadvantages. So, in the case of complete centralization in setting goals, all goals are determined by the highest level of management of the organization. With this approach, all goals are subject to a single orientation. And this is a definite advantage. At the same time, this approach has significant drawbacks. So, the essence of one of these shortcomings is that at the lower levels of organizations there may be rejection of these goals and even resistance to their achievement.
In the case of decentralization, in the process of setting goals, along with the top and lower levels of the organization participate. There are two schemes for decentralized goal setting. In one, the goal-setting process is top-down. The decomposition of goals occurs as follows: each of the lower levels in the organization determines its goals based on what goals were set for a higher level. The second scheme suggests that the goal-setting process proceeds from the bottom up. In this case, the lower links set goals for themselves, which serve as the basis for setting goals for a subsequent, higher level.
As can be seen, different approaches to setting goals differ significantly. However, it is common that the decisive role in all cases should belong to the top management.
Strategic objectives
The distinction between goals and objectives is based on the level at which they operate in the organization. Tasks are also relevant to individual divisions of the organization or its branches.
It is also possible the presence of tasks in the goals, but at the level of departments, if they are included in the process of achieving the goals. In this case, the tasks are a reformulation of the general goals, in that part of their achievement that is assigned to individual departments (for example, the company's goal to get a certain percentage of sales growth can be reformulated as specific tasks for the production department, marketing department, transport department, financial service, etc.). d.).
Objectives are more short-term than goals, as they are related to the planning of current activities. This often leads to the fact that the tasks are inherently multiple, as they are operational in nature and may vary depending on the direction of the company.
The goal and main objectives provide the background in which the proposed strategies are formulated, as well as the criteria by which they are evaluated.
Key objectives establish what the organization intends to accomplish in the medium and long term to achieve the goal.
