Objectives

Definition

Objectives are specific, measurable goals that an organization aims to achieve within a defined timeframe. They guide managerial actions and decision-making processes to ensure the alignment with the overall strategic direction of the company.

5 Must Know Facts For Your Next Test

1. Objectives help managers prioritize tasks and allocate resources efficiently.
2. They should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
3. Clear objectives facilitate performance evaluation and accountability among team members.
4. Objectives can be financial (e.g., profit margins) or non-financial (e.g., customer satisfaction).
5. Effective objectives align with the company's mission statement and long-term strategy.

Review Questions

• What characteristics make up a SMART objective?
• How do objectives assist in resource allocation within an organization?
• Why is it important for objectives to align with a company's mission statement?

Related terms

Strategy: A plan of action designed to achieve long-term or overall aims of the organization.

Performance Metrics:

Quantitative measures used to gauge the efficiency and effectiveness of actions taken towards achieving objectives.

Resource Allocation:

The process of distributing available resources among various projects or business units to meet objectives.