These are the overall goals for an organisation. The provide a general idea of what the organisation wants to achieve. Eg. Provide the best customer service.
These are the precise goals that need to be achieved to reach the overall aim. Eg. Train all customer facing staff before the end of the year or open a new call center before June. In order for objectives to be effective , they need to be SMART.
Specific – the focus of the objective should be very clear – is it about increasing sales or profits or reducing staff or costs.
Measurable – it should be possible to measure the outcome – a 10% increase in profits or a reduction of 15 staff
Achievable – consider whether this is possible – has this been done before or does it seem likely that it can be done this time?
Realistic – all companies want to be hugely successful, but objectives need to be realistic. An man running a single ice-cream van is unlikely to achieve sales of £2,000,000 million in a year no matter how hard he works.
Timely – the objective should have a set time period in which it should be achieved.
Financial Aims and Objectives
- market share
- financial security
Non-financial Aims and Objectives
- social objectives
- personal satisfaction
- independence and control
The aims of an organisation largely depend on the type of organisation
Public Sector Organisations
These are organisations owned and operated by the government such as hospitals, schools and the police force. These organisations are funded by taxes. Rather than aiming to make a profit, these organisations aim to benefit the public by keeping them healthy, educated and safe.
Private Sector Organisations
These are the business that we talk about regularly that are own by individuals or groups of individuals. Private businesses usually aim to make a profit.
These are run by individuals or groups of individuals, but all profits are used for charitable purposes. Eg. Guide Dogs for the Blind run sponsorship schemes and sell badges, pens and toys. All the profits are used to train guide dogs.