Goals and objectives describe things that a person desire to achieve. However, goals are set for long term and objectives are designed to achieve these goals. Goals are general and open-ended but objectives are more specific and try to explain or translate the goals into milestones for an organization to follow.
What are Goals?
In business, goals describe that what an organization wants to achieve. We can think of goals as a whole or broad view. A goal may have the following features:
- Clarify the destination
- Help to prepare for journey
- Better performance measures by setting up a performance standard
Goals are set for longer-term aspiration.
What are Objectives?
Objectives are more specific which a person desire to achieve within a time frame and desired resources.
An objective must fulfill the SMART criteria:
- Specific – Clear and easy to understand
- Measurable -Enable control and performance measure
- Attainable – You can not set a goal to become a God.
- Relevant – Relevant to the goals
- Timed – Usually short term
Objectives are very specific and measurable.
Example of Goals and Objectives
The management of FoodKing limited, a food company, sets a goal to improve the profitability of the company for an increased dividend to shareholder. The management has set a number of objectives to respond to shareholder’s need. one of these is to “Reduce the product cost by adopting modern manufacturing techniques” Although, it seems costly now, due to high cash outflow but it will add value in longer-term.
Difference Between Goals and Objectives
|About||An aim or desire result for aspiration||A specific result that a person wants to achieve|
|Features||Clarify the destination helps to prepare and improve control by setting performance standard||Objectives must fulfill the SMART criteria (Specific, measurable, Attainable, Relevant and Timed)|
|Time||Goals are set for long-term||Objectives are set usually for short-term|
|Example||Improve profitability for increased dividend||Reduce product cost by the adoption of modern manufacturing techniques.|