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Organizational Objectives: Definition, Methods and Impact

By: | April 20, 2021 12 min read

Management by Objectives– a term often talked about during the process of setting objectives. However, how does the concept of objectives apply to an entire organization?

Objectives are measurable ends for a set process. We identify goals and take action to make them happen. Organizational objectives help set goals so that all company-wide activities lead in one single direction. “It is the future results that an organization wants to achieve.”

Simply having a plan doesn’t work. We also need to measure continuously, and act wherever required. For example, a revenue target of INR 100,000 leads every month is a specific and measurable objective that can be estimated, verified and achieved.

What are the objectives of organizational development?

Every organization has short-term, medium-term, and long-term goals. These are the goals organizations seek to accomplish and are otherwise known as organizational development objectives. Organizational objectives play a significant role in determining policies and the allocation of resources in the future.

Before setting organizational development objectives, realize that it involves many factors.

  • How many objectives do you want to set? Single or Multiple?
  • What are the deadlines?
  • Who controls the final decisions?
  • Are the decision-makers committed to the objectives?

It is why having a transparent system in place is vital. Otherwise, people will only focus on the objectives best suited for their progress. Here the only thing that matters is the progress of the entire organization instead of individuals.

Focus on sales, research and development, marketing, technology, etc. Take distinct factors into account that can impact setting and achieving objectives, such as time, capital, human resources, etc.

image showing stats for objectives

Performance Objectives in Business

Organizational objectives meaning can be different for every company. It can be achieved by creating a business plan with performance goals and objectives. Eventually, a business needs to make money, and all the parameters should focus on these outcomes. Despite market fluctuations, pandemics, or any other roadblock, satisfying their customer is the way to progress toward success. Keeping the parameters below will help in analyzing the organizational objectives and predict their impact on the business landscape:


To start, strive for quality. Quality will draw customers to your business through continuous recommendations, whether it’s a service or product.


Remember when you ordered food online, and it took forever to arrive? You couldn’t wait to give the delivery service a negative rating. The truth is that speed in business matters a lot. Swift delivery of products and services to clients leads to high customer satisfaction. Also, speeding up processes saves money allowing businesses to provide the same service to more people in less time.


Speed needs consistency to make any impression. For example, Dominos will only be successful with its 30-minute delivery promise. All customers expect delivery as and when promised. If that doesn’t happen consistently, they’ll switch to competitors, even if that involves paying more money.


Flexibility is a competitive edge and need of the hour. Modern businesses must be flexible enough to go through the changes in the market according to customer requirements. For example, a local grocery store that built an app so people could order from their homes during the pandemic will thrive. Trust in a business is earned through innovation and customer service.


It is another aspect that affects organizational success. Externally, your customers expect you to keep your prices competitive. Internally, minimize the cost of operations, salaries, equipment, vendors, etc., to keep the business sustainable.

Challenging yet attainable

Challenging goals need to be solved innovatively and creatively. However, goals, though challenging, should be attainable. People work hard, so don’t set targets that are way out of everyone’s league.


Without a set timeline, there is no point in finally finishing an objective in months or years. Review and assessment are two significant steps in making the process successful, and that can only happen if there is a specified period for all tasks and actions.


Individual, team and company goals should be streamlined in one direction so they support each other.


It’s okay to have multiple goals. But none is really a priority if all of them are a priority. Therefore, arrange goals in the order of importance and finish them individually. It ensures consistency and efficient utilization of company resources.

How do you define your organizational objectives?

Many modern organizations are adopting the OKR methodology for goal setting as it takes care of the individual, team, and company goals together. By setting transparent organizational objectives, it’s easier to show employees a better sight of how their role is key to the company’s success and align their individual objectives with the organizational goals and objectives.

SWOT Analysis

A thorough evaluation of the Strengths/ Weaknesses of the business will help you identify opportunities and eliminate significant threats. This information lets you develop relevant strategies and action plans for your business. Identify industry trends and define your objectives based on the future, not the past or present. This framework is always a great way to start working on the company objectives.


The vision of any organization should reflect its objectives and goals. Objectives can be short-term or long-term in nature. The best way is to start with a big aim and work backward. Then, think about the strategies in the shorter term that will help you achieve your grand vision.

For example, in 5 years, you want to have 5000+ clients and 5 million dollars of yearly revenue. For this goal, you also need to set annual and monthly targets. Then, break them down into something that you and the team can start today.


The SMART framework will help you set better individual goals aligned with organizational objectives.

SMART stands for:

S– Specific

M– Measurable

A– Achievable or Attainable

R– Relevant

T– Time-Bound or Time-limited

Managing the stakeholders

Organizations with a flatter hierarchy can need help deciding stakeholders for a particular set of tasks. However, this is important to avoid any confusion. Define Who’ll:

  • Contribute to the success of that objective
  • Measure the success of that objective
  • Track and assess the key results

Talk to your employees

Many companies leave the implementation part of an organizational objective to their top management or managers. Don’t have clear communication with all employees involved in the process? It is likely things won’t work.

Employee feedback adds insights to the strategies of the leaders. Customer feedback and information on internal and external processes are areas where the workforce knows more than you. So, include them when you’re planning objectives for the company.


Setting organizational objectives is not easy. It involves stakeholders, elements that sometimes are out of your control. That’s why building a solid plan using the above framework can really help you set better goals and objectives. Measuring and reaching those objectives is more demanding than putting them in place. We suggest you have a consistent channel of communication for review and assessment. Keep your employees engaged in the vision and mission of the company. Success is only possible with a workforce that cares.

Get a free demo of Keka’s goal tracking software!


1. What are organizational objectives in management?

Organizational objectives are the medium and short-term goals a business pursues to achieve its long-term objectives. These goals enable an organization to assess its operations, strategic planning, and productivity levels. The acts, regulations, and decisions essential to carry out a business’s goal may be included in organizational objectives.

2. What are the four organizational objectives?

The four common organizational objectives depending on the organization, are:

  • Performance reviews of employees
  • Measuring productivity
  • Customer satisfaction metrics
  • Revenue goals

3. What are the eight main characteristics of organizational objectives?

Ans: A business greatly relies on the establishment of objectives. In reality, setting organizational objectives is where the management process starts. The organization uses strategic planning in all areas of operations.

The eight main characteristics of organizational objectives are listed below:

  • A clear set of objectives
  • Attainable
  • Achievable
  • Qualitative as well as Quantitative
  • Flexible
  • A Hierarchy of Goals
  • Objectives should be specific
  • Several different goals.

4. What are the functions of goals/objectives in the organization?

Ans: Objectives are important in an organization as they provide a clear and measurable target for the employees and teams to work towards. Setting specific and achievable objectives helps identify areas for improvement and measure progress. They help align all employees’ efforts towards a common goal and accountability. Objectives can help an organization to achieve success.

5. What are the main types of objectives?

The main types of objectives are typically under one of the following heads: financial, strategic, operational, and personal development. They guide organizations and individuals in achieving the desired outcomes.

6. Are organizational goals and objectives similar?

Yes, organizational objectives and goals are similar to each other. Both assist in defining the desired outcome of a task and provide guidance to achieve the outcome.

7. How to achieve organizational objectives?

The process to achieve organizational objectives: a pre-established clear set of goals, a strategic plan to guide, effective communication and collaboration channels, tracking and monitoring progress and making the necessary adjustments.

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    A bunch of inspired, creative and ambitious youngsters- that’s Keka’s editorial team for you. We have a thirst to learn new subjects and curate diverse pieces for our readers. Our deep understanding and knowledge of Human Resources has enabled us to answer almost every question pertaining to this department. If not seen finding ways to simplify the HR world, they can be found striking conversations with anyone and everyone , petting dogs, obsessing over gadgets, or baking cakes.


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