EDM 705

STRATEGIC MANAGEMENT FOR EDUCATIONAL LEADERS

ED 705
MASTER OF EDUCATION (LEADERSHIP AND MANAGEMENT)
FACULTY OF EDUCATION

CHAPTER REVIEW

GOALS AND OBJECTIVES

Prepared for:
PROF. DR. CHAN YUEN FOOK

Prepared by:
NAME STUDENT ID.

NABILA HANIS BINTI ABDUL SAMAT 2018617236

DAYANA NUR BINTI AZMI 2017818646

Table of Contents

No. Content Page Number

Chapter Overview
1.
Learning Outcomes
2.
Topics and Subtopics
3.
Introduction
3.1
Goals
3.2
Definitions of Goal
3.2.1
Characteristics of Goals
3.2.2
Importance of Goals
3.2.3
Types of Goals
3.2.4
Objectives
3.3
Definitions of Objectives
3.3.1
Characteristics of Objectives
3.3.2
Roles of Objectives
3.3.3
Nature of Objectives
3.3.4
The Distinction of Goals and Objectives
3.4
Examples
3.4.1
Questions and Answers
4.
References
5.

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 1. Chapter Overview

This chapter basically deals with two of the fundamentals of strategic

management, which are the identifications of strategic goals and objectives. A
number of elements of goals and objectives will be discussed briefly in this chapter,
by reviewing some articles related to each topic.

2. Learning Outcomes

Upon completion of this chapter, learners will be able to:

1. Define goals.

2. Identify the characteristics of goals.

3. Recognize the importance of goals.

4. State the types of goals.

5. Define objectives.

6. Identify the characteristics of objectives.

7. Recognize the roles of objectives.

8. State the nature of objectives.

9. Distinguish goals from objectives.

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 3. Topics and Subtopics

Below are the two main topics that will be discussed, which are goals and objectives.
While the subtopics rely upon the aspects of each topic, in providing better
understanding to learners.

Goals and Objectives

Goals Objectives The Questions

Distinctions and
Definitions Definitions between Answers
Goals and
Characteristics Characteristics Objectives
Importance Roles Examples
Types Nature

3.1 Introduction

Before learning about Goals and Objectives, it is important to understand the broad
concept that goals and objectives fall under, which is Strategic Management.

plays a vital part in

determining the basic
decisions about the
future directions of
any organization

Strategic is the process of

Management identifying the
involves purpose of an
several organization, and
components hence deciding the
in the plans and actions
process. towards achieving the
purpose

Strategic management indeed involves several components in the process. Rao,

Rao, & Sivaramakrishna (2011) in their book of Strategic Management had come up

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with a general framework of Strategic Management process, as shown in Figure 1
below:

Figure 1: A General Framework of Strategic Management Process by Rao, Rao, &

Sivaramakrishna (2011).
In other words, the preparation of a strategic plan involves multiple steps covering
many elements as shown below:

Vision

Programs Mission

Elements
of
Strategic
Plan

Evaluations Goals

Objectives

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 3.2 Goals

3.2.1 Definitions of Goals

In order to understand how goals have been perceived as since they were
first being conceptualized, we shall take a look at the definitions from the early years
until the nearest ones.

The desired future state of affairs, which the organization

Vroom & Etzioni (1964) aims to realize and bring about.

Simon (1964) Constraints, as imposed by the organizational role.

A set of outcome-oriented statements that reflect the

Schenider (1985) mission, values, and commitment of the leaders and the
internal stakeholders of a firm.

Smith, Locke, & Barry A standard measurement on members’ performance.

(1990)

Rao, Rao, &

An open-ended statement that is subject to be achieved,
Sivaramakrishna without considering time for its completion.
(2011)

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 3.2.2 Characteristics of Goals
In distinguishing goals from other similar elements such as objectives, there
are several characteristics that can be outlined. As goals are the intermediate result
to be achieved by a particular time while reaching the grand plan, they are expected
to be measurable, quantitative, challenging, realistic and consistent.
However, these general characteristics are different from those particularly
referring to strategic goals. Hum, K. S. (2006) outline four characteristics that make a
goal strategic, as shown below:

2. Must be achievable with the

1. Propose meanings to the organization cooperation of everyone involved in the
as a whole. actions towards the accomplishment.

Characteristics of Goals
according to Hum, K. S. (2006)

3. Required to be non-operational and

not necessarily time-bound. Non- 4. May be applied over the long term,
operational goals simply mean that the even up to the existence of the
expected state must not have a specific organization.
measurable target.

The first two characteristics are to differentiate individual goals from

organizational goals, and they are related to each other in a sense that collective
goals which serve meaningful impact on the organization as a whole, would require
assistance and cooperation from each member of the organization. On the other
hand, individual goals do not necessarily require cooperation from those who are not
involved or unrelated. As of now, both characteristics do not contradict the
characteristics of goals in general.
To conclude, by understanding the characteristics of both traditional and
strategic goals, we are exposed to different perspectives on the topic as a whole.

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 3.2.3 Importance of Goals
As previously stated in the definition part, organizational goals indeed are significant
in the process of strategic management. Refer the diagram below to understand the
importance of goals:

Enable each member of the organization to set focus on the

actual actions.

Function as a measure or standard for individual’s or group’s

performance. This later on will be helpful in evaluating their
performance level from the side of organization’s goals.

Play roles in formulating the structure of organization, where

goals will determine the relationships among people, and the
creation of positions at different levels.

Enable its members to stay motivated and the other related

parties such as the stakeholders to hold the organization (Bart
and Baetz, 1998).

Make it possible for leaders to explain the whole business nature

to the other members of the organization Drucker (1954).

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 3.2.4 Types of Goals
Perrow (1961) classifies goals into two groups which depend on the outcome
nature; be it internal or external to the organization. Gross (1969) then proceeds with
the same concept, that goals may be categorized into two; output and support goals.
Output goals refer to those that are expected to affect society outside the
organization, while support goals deal with maintaining the organization from inside.
On the other hand, organizational goals can also be classified into three
types, as explained below:

refer to the ones that are informed to the public.

are announced in the form of policy statements.

For example, the official goal of a private school may be stated in

the form of say 20 straight A’s students per year.

The purpose is to provide positive impression to the public.

Also known as Stated goals.

are the goals that can or are possible to be translated into

practice by the members.

are generally derived from the official goals.

are perceived to be more relevant to the individuals or groups.

For example, the goal of producing 20 straight A’s students per

year may not be operative to the teaching staff and other
responsible parties.

refer to the operative goals that can be implemented into

actual actions.

A transportation company may have an operative goal of

producing goods that are 10% higher than the previous
year. However, for it to be an operational goal, the actions
of achieving the goal must be transformed into actual
implementation.

can only be operational goals when they are agreed by

related parties in terms of the determining the actual
actions that contribute to these goals.

refer to any sort of means to achieve them.

If there are challenges or constraints, the goal will not be

operational. Therefore, those that cease to be operational
will then be non-operational goals.

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 Rao, Rao, & Sivaramakrishna (2011) highlight that operational goals are the
actual goals of an organization. Operational goals are the ones that provide
guidance to the members on the actual actions to be taken. These goals can then be
classified into five as stated by Perrow (1961):

 denote that an organization should be more

concerned on the communities in which it
runs.

 focus more on the people’s satisfaction and

social responsibility.

Environmental
goals

Derived goals Output goals

Operational
Goals
 involve the contribution to political  deal with the process of
activities, social services, and so identifying the needs of
on. customers.

Product goals System goals

 concentrate on the nature  refer to the maintenance of

of the products the organization

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 3.3 The Distinction between Goals and Objectives

The terms goals and objectives can sometimes be seen to be used interchangeably.
However, it is always recommended and preferable to differentiate both terms. Refer table 1
for a clear picture of the difference between goals and objectives:

No
Basic Goals Objectives
.
The intermediate results to Statement of what to be
be achieved by a certain achievable, measureable
1 Meaning
time as part of the grand and stated with specific
plan. time frames
2 Action General action Specific action
Not necessarily
3 Measure Measurable and tangible
measurable and tangible

3.3.1 Examples

Below are the examples of goals and objectives by two renowned organizations; Apple and
McDonalds, for better understanding:

Organization Goals Objectives

Apple To obtain stellar products and To produce hassle free products

services within tight timeframes,
at a cost that represents the
best possible value to our
customers and shareholders.
that provides service and
enjoyment for customers.
Another objective for Apple is to
produce hassle free products that
will provide service and enjoyment
for customers.

McDonalds To serve good food in a friendly Maintain a good and friendly

and fun environment, to be a environment.
socially responsible company
and provide good returns to their
shareholders.

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 4. Questions and Answers

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1) Based on your reading on the definitions of goals, provide the most
comprehensive definition of organizational goals.

Goal is defined as an “intermediate result to be achieved by a certain time as part of

the grand plan.

2) What are the characteristics of an organizational goal?

Goals should be measurable, quantitative, challenging, realistic, consistent and

prioritized.

3) State the importance of organizational goal.

Goals provide the nature of the organization, maintains the motivation of its
members, manage performance, and increase performance.

4) What are the types of goals? Provide brief explanation to each of the type.

There are 3 types of goals, which are official goals, operative goals, and operational
goals. Official goals are the ones announced to the public, operative goals are the
official goals that are possible to be implemented, while operational goals are the
actual goals where the actions do really take place.

5) Based on your reading on the definitions of objectives, provide the most

comprehensive definition of organizational objectives.

An objective is a statement of what to be achievable, measureable and stated with

specific time frames.

6) What are the roles of objectives?

Objectives play an important role in strategic management as they provide

legitimacy, state direction, aid in evaluation, create synergy, reveal priorities, focus
on coordination, provide basis for resource allocation, act as benchmarks for
monitoring progress and provide motivation.

7) What do you mean by hierarchy of objectives?

Hierarchy objectives generally established at the corporate, divisional and functional

levels as such they form a hierarchy.

5. Summary

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 In conclusion, both goals and objectives are important for a foundation of
an organization. Goals and objectives share the same value but more specific in
order to achieve result in an organizations. Goals are essentially significant in a
sense that without them being achieved, objectives will not be able to be
reached. It simply shows the connection between goals and objectives. The
roles, characteristics and nature of objectives, on the other hand, are important to
analyse in order to structure appropriate objective in an organization and
achievement can be attained according to time period. An organization must
identify how long they are required to apply objective specifically and to use what
type nature of objectives that are appropriate for all department of an
organization. Objectives can be adaptable from time to time following the current
situation and environment in order to obtain improving of performance.

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References

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the Concepts and the Importance of Strategic Management. International
Journal of Scientific and Research Publications, Volume 6, Issue 2, 124-127.
Hum, K. S. (2006). The Effect of Employee Employer Relationship Factors on
Employee
Commitment to Strategic Organizational Goals (Master’s thesis). University of
Waterloo, Canada.

Mohr, L. (1973). The Concept of Organizational Goal. American Political Science

Review, 67(2), 470-481.
Rao, A., Rao, B. P., & Sivaramakrishna, K. (2011). Strategic Management. Delhi:
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Simon, H. A. (1964). On the Concept of Organizational Goal. Administrative Science
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Mishra, S. (2015). Organizational objectives for information security governance: a
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