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Goals are desired results expressed in qualitative terms. For example, a typical goal of profit-oriented firms is to maximize shareholder wealth. Goals are also likely to be formulated for other major stakeholders, such as customers, employees, and suppliers.
In contrast, objectives are quantitatively expressed results that can be achieved during a pre-established period or by a specified date. Objectives should logically be used to measure progress in achieving goals. For example, one of ABN AMRO’s goals is to become a leading bank in the euro. In pursuit of that goal, the bank established an objective of having all of its systems euro-compatible by January 1, 1999, when the euro was introduced. The objective was achieved at tremendous cost, but management believes that ABN AMRO’s new ability to offer harmonized banking services throughout Euroland will be worth the investment.
An organization’s structure normally evolves from its mission, goals, and managerial personalities. Organizational structure reflects the way in which authority and responsibility for making decisions is distributed in an organization. Authority refers to the right (usually by virtue of position or rank) to use resources to accomplish a task or achieve an objective. Responsibility is the obligation to accomplish a task or achieve an objective.
An organization’s structure normally evolves from its mission, goals, and managerial personalities. Organizational structure reflects the way in which authority and responsibility for making decisions is distributed in an organization. Authority refers to the right (usually by virtue of position or rank) to use resources to accomplish a task or achieve an objective. Responsibility is the obligation to accomplish a task or achieve an objective.
