Goal Setting as a Function of Management

Goal Setting as a Function of Management
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  • 00:00 Management
  • 00:32 Goal Setting
  • 1:59 For the Company
  • 2:40 For the Employees
  • 3:57 Lesson Summary
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Lesson Transcript
Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

Watch this video lesson to learn how goals help a company and its employees to succeed both in the day-to-day operations and in the long term helping the company grow and become more profitable.

Management

How successful a business is depends largely on its management. We define management as the people in charge of leading a business. In small businesses, the management is typically the owner, or sometimes the owner will hire a general manager. In larger corporations, the management is typically a board of people consisting of the CEO (the chief executive officer), the CFO (the chief financial officer), the CMO (the chief marketing officer), etc. In this lesson, we'll take a look at how management sets goals for the company's success.

Goal Setting

One of the ways in which management can really impact the success of a company is with the use of goals. We define a goal as a desired result. With goals, a business has something to work towards. Without goals, a business doesn't have anything to work for. When a business doesn't have anything to work for, its enthusiasm can die down, resulting in a stagnant business that might eventually fail. Goals create excitement for the business and they provide a clear direction. For example, a business can have the goal of increasing the number of sales by ten percent each quarter. This type of goal will help drive a business to increase its marketing efforts to reach even more people. With a goal like this, it gives the business something to focus on and management can set goals, not just for the company, but also for the employees. When the goals of the company and the employees match, it helps to grow the company that much faster.

It is important to set goals that are challenging, but attainable. If you want to grow your business so that it becomes the largest in the world, it is best to start with smaller goals. Starting with a huge goal can lead to disappointment and frustration when the goal seems to take forever to reach. Set small, attainable goals and when each goal is met there will be added enthusiasm and excitement to reach the next goal. With each new goal set, you will be that much closer to your ultimate goal. Let's take a look at how Sam, the manager of a grilled cheese restaurant, sets goals for his company.

For the Company

Sam is reviewing how his business did last month and he sees that it can do better. He decides to set a goal for the business. He wants to increase the number of customers served by one hundred every month. Eventually, he will have enough customers to allow him to open up a second location. At the next employee meeting, Sam tells everybody about his goal for the business. He makes sure that everybody is on the same page and that everybody sees that the goal is important to work towards. He wants everybody to have the same urgency about growing the business as he does. Only then will his employees actively work toward reaching that goal.

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