The goals of the organization

Kuznetsov. Fundamentals of management

In the logic of goal-setting, as in life, of utmost importance is the premise, or the first step. Victor Hugo said that man is free only in the first step, the second step depends on the first. The conclusion from this purely practical: we must always, whenever possible, carefully consider the initial actions to prognostically calculate their possible consequences.
So, experts say that the correct formulation of goals and setting of tasks by 50% to determine the success of the solution.
firm or commercial organization has as its main strategic goal of making a profit. This is a key indicator. Adopted in 1995 the Civil code of Russia (article 50, part I) noted that the main purpose of commercial organizations is profit.
However, achieving this goal due to the need to produce for the market goods and services. And not trade at all, and the production of only the products and services that customers need. The management has three objectives: profit; cost reduction; increased market segment.
There are three main types of orientation of the company on profit: 1) its maximization; 2) receiving "satisfactory" profits; 3) "minimaximin" profit.
1. Maximization of profit. The meaning of this orientation is to obtain the highest possible profit in each transaction, both at the expense of internal reserves, and by (choice) customers. This purpose cannot be justified from the point of view of its social consequences. Therefore, as a long-term strategy of the company, it is in this form is still relatively rare. But for short-term tactical objectives this orientation is used mainly in the areas of rapid economic growth. The policy of maximizing profits for all types of activities may be legitimate from a legal point of view, only if the position of the company is not a monopoly.
2. Obtaining a "satisfactory" profit. This strategic goal, the essence of which is that when planning for profit, it is considered "satisfactory", if you will take into account the degree of risk. The benchmark for the firm in this case is a profit which would be obtained when applying this capital in some other industry. "Satisfactory" profit tends to decline to a level that will not attract too many competitors in this industry, but will not require the intervention of the authorities, providing that the position of firms in the industry became a monopoly.
3. "Minimumsimilarity" profit. One of the important tasks of management is to create the conditions necessary for the further successful functioning of the organization. That's why the main principle and guideline of management is not profit maximization, and the successful elimination of (elimination) of the effect of risk situations.
Or that the operation of the organization must bring a profit, which would allow to accumulate sufficient funds, creating a real opportunity to overcome the possible risks of the future. If you follow this option, the orientation strive to achieve the maximum profit, but not in all positions, as in the first case. When making decisions, takes into account not only the degree of risk, as in the 2nd case, but also the need for insurance against possible losses. Therefore, this option refers to maximizing the minimum expected income along with minimization of maximum losses.
Sometimes the goal of a firm is determined by the non-profit motivation. This does not mean that in this case the firm is not interested in her financial Affairs. As in the previous cases, the firm can exist only in terms of its profitability. Only instead of maximizing the income growth of the rate of profit is expressed in other indicators:
• satisfaction of the consumer or user of the services;
• market position, often associated with the desire for market leadership;
• conditions of welfare workers and the development of good relations among personnel;
• public responsibility and image of the organization;
• technical efficiency, a high level of productivity, giving special attention to the scientific research and development;
• minimization of production costs, etc.
The achievement of profit, as a strategic goal is, as already mentioned, with account of adaptation to external and internal business environment. Therefore, in each specific period of time, the company may set goals derived from strategic. In addition, goals and objectives differ in terms and functions, i.e. their tasks are given to each functional area of management and therefore the relevant departments.
As is known, in accordance with the General functions of management management is divided into three parts: production management, marketing and financial management.
Production management, in turn, is divided into a number of functional areas — production, personnel management (sometimes considered as a separate part of the management), technical service, supply chain, R & d, personnel service, each with its strategic orientation, its specific goals.
Good organization of production does not automatically guarantee the success of the company. However, poor organization cannot achieve success, because the production cost is typically 50-70% of the price of products sold

It is obvious that the goals of production are determined primarily by consumer and are closely linked with marketing and financial management. To determine the objectives of management can be divided into five terms of the sale of goods or services, in which consumers may be interested: 1) a functional purpose and quality; 2) quantity; 3) price; 4) delivery; 5) service.
1. Functional purpose and quality. In the case of buying a car, you need to be sure that it has acceptable quality. At the same time, the vehicle should perform the required functions and be on the move in various conditions. Of course, the most important thing. Functions that can be performed by a product shall conform to the perceptions of their customer.
At the same time, the quality of the product should be such that functions are performed with certain reliability.
The compliance of products with the essential standards of quality and functionality in the firm is checked by a special group dedicated to new products. The design solution must provide the functionality of products, and as a result of the production process should get the product, the corresponding design solution.
2. Number. The consumer needs to be absolutely the amount of goods and services. For example, if you use too few locomotives, it leads to downtime of other vehicles, conversely, if too much unjustified increase in the cost of services of the railway. There is always the problem of matching the number of products the number required in the market. Overproduction leads to losses, and the shortfall — to the loss of potential profits.
3. Price. Most consumers are limited in their income and therefore, for those can pay only a certain amount. For example, the price of rail transport should be comparable to the prices of competing transport services, road or air. If prices are too high, consumers prefer alternative transportation. In addition, management should be focused on cost reduction. On the basis of the calculation system and cost control measures are being implemented to save costs.
4. The terms of delivery. The buyer wants to obtain a particular product or service at a certain time. Requirements of the buyer, the delivery time should be taken into account when setting deadlines. Each order must be completed in a specific time. This requires monitoring all operations carried out continuously or on a schedule. Information should be provided that is not done in time and why that is done ahead of time, what are the possible ways to repair defects.
5. Service. This concept is one of the obligations of the company for the repair or replacement of individual parts of its products in case of unsatisfactory work. That is, the firm takes responsibility for the maintenance of the product during the entire operating time. The role of a Manager is to achieve all of these listed goals as effectively and efficiently as possible. Peter F. Drucker in this regard noted that the performance shows the degree of achievement of the desired objectives at minimum cost or effort.
When effective leadership based on the use of fixed resources receive a large amount of products. However, more important for the Manager is the correct definition of objectives, the achievement of which should focus the activities of the company. The right choice of goals determines the effectiveness of activities. The effective Manager does the right thing, and the Manager, acting efficiently, doing the right thing. Without the effectiveness of the performance means little. Work can be very productive for some time, but the wrong selection of targets leads to a zero effect.
It should be noted that along with the goals and objectives are determined, i.e., the requirements of work that must be performed in a predetermined manner in predetermined timing. Tasks pertain not to the employee, and the position and be reflected in job descriptions and reviewed as necessary contribution to the achievement of organizational goals.