Organizational Objectives: Definition & Examples

Lesson Transcript
Instructor: Shawn Grimsley

Shawn has a masters of public administration, JD, and a BA in political science.

Organizational objectives are the goals that a company wants to achieve within a determined period of time. Learn the definition and key concepts of organizational objectives and explore some examples. Updated: 09/09/2021

Definition of Organizational Objectives

Organizational objectives are short-term and medium-term goals that an organization seeks to accomplish. An organization's objectives will play a large part in developing organizational policies and determining the allocation of organizational resources. Achievement of objectives helps an organization reach its overall strategic goals.

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  • 0:26 Key Concepts
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Key Concepts

Setting objectives can involve many factors. You can set a single objective for your organization or multiple objectives. You set target deadlines for the accomplishment of objectives. Other critical factors include who controls the decisions that will affect objective achievement. The decision-makers must be committed to the objectives.

Organizational politics will come into play, with differing interests supporting the advance of objectives that are best for them. This usually results in bargaining between various interest groups in the organization, which results in objectives that are satisfactory to the key organizational groups, such as sales, research and development, marketing, and production. Finally, you must take into account factors that can hinder setting and achieving objectives, such as time, institutional, financial, and environmental constraints.

Example

Let's say that you are the director of a non-profit organization that assists recently-arrived immigrants to your community. The organization provides language classes, civics classes, financial planning classes, and assistance in obtaining housing and work. Your organization's strategic goal is simple: help immigrants integrate into the community. The programs are the means by which you hope to achieve that strategic goal. Your sources of revenue are limited because they are based only upon donations and state and federal grants. You are meeting with the program directors for the annual meeting to set the organization's objectives for the next year.

Unfortunately, given the state of the economy, donations are down and competition for government grants has become fierce. Each program director zealously advocates for advancement of his or her program, but there are going to be winners and losers this year because of the funding. You all agree that each program should be maintained, because they are essential in achieving the organization's goal of integrating newly-arrived immigrants. However, you decide to focus your efforts this year on language classes, work assistance, and housing assistance because you feel these three programs are absolutely essential for the achievement of your strategic goal.

You and your team come up with the following objectives for the year:

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