Organizational objectives are essential for any business, as they provide a clear direction and purpose for the company. They help stakeholders, employees, and management understand the company's mission and values, and also serve as a guide for allocating resources and developing policies. Objectives are measurable goals that are set to achieve the organization's overall strategic goals. They are specific and time-bound, and often require the completion of several objectives to reach a goal.
Objectives also provide legitimacy to the organization, as they help create its profile and relate it to the environment. Organizational objectives can be divided according to their hierarchical level, with different interests supporting the objectives that are best for them. It is important that objectives are realistic and achievable, taking into account market conditions, competition, capabilities, and resources. They should also be clearly identified so that management functions can be carried out effectively.
For example, PepsiCo's marketing goal could be to “increase Gatorade's market share by 4 percent by the end of the year.” Objectives help guide and motivate employees, providing them with reference points to evaluate the company's marketing actions. They also help managers divide tasks among employees so that the company can meet its objectives. Ultimately, organizational objectives are important because they help everyone in the organization understand the company's mission and values, and ensure that all activities lead in one direction.