Functions of Organizational Goals 

The functions of the small business or the organizational goals work in harmony to help the business achieve both short- and long-term goals. Some common business functions include marketing, production, and accounting. Management is a process with a social element. It requires the efficient use of resources combined with the guidance of people in order to reach a specific organizational objective. It involves the responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. It’s about taking charge and ensuring focus is placed on the things and aspects of the business that help achieve the vision and the goals.

Importance/Functions of organizational goals has been described under the following heads:

1. Focus Attention of Individuals and Groups to Specific Activities and Efforts of Organisations:

When an organization’s goals are known to individuals and groups, it will help them in channelizing their activities towards attaining an organization’s goals. In other words, the goals prescribe the course of action to individuals and groups which will be helpful and complementary to the achievement of an organization’s goals.

2. Provide a Source of Legitimacy to Action by Members:

Once this course of action has been decided for the individuals and the groups within the framework of organizational goal, it will promote legitimacy and justification to individual’s or group’s actions and decisions.

3. Serve as a Standard of Performance:

Goals provide a measure of an individual’s or group’s performance. They may help the organization members to evaluate the level of their performance in the perspective of the organization’s goals.

4. Affect the Structure of Organisation:

Goals and structure are intimately related to each other. The relationship among people in the form of authority and responsibility or the positions to be created at different levels has to be decided on the basis of organizational goals. In other words, what the organization proposes to do will be determined by the organizational setup it will structure. Similarly, it will be the structure also which will influence the goals.

5. Provide Clues about the Nature and Character of Organisation:

The nature and character of an organization may be known for its goals. For instance, the goal of maintaining the quality of the product without much regard to return on investment may help the outsider to hold the organization and its members in very high esteem.