Final answer:
Company objectives outline the intended direction and targets for various subdivisions within an organization, which should be specific and measurable over defined time periods. Employees should understand the organizational structure and who to approach for guidance. As a company becomes more established, transparency in business performance attracts investors, reducing the need for personal knowledge of individual managers.
Step-by-step explanation:
Understanding Company Objectives and Performance Targets
Company objectives provide a roadmap for an organization, addressing the question, "Where do we want to go?" These objectives need to be broken down into performance targets for the company's separate businesses, product lines, functional departments, and individual work units. This helps to ensure that all parts of the organization are aligned and working towards common goals. Additionally, company objectives determine the geographic and business scope of the company's operations, laying out a clear plan for expansion and market presence.
To be effective within an organization, one should understand the organizational structure and know your direct supervisor for guidance and approvals. As you progress in your role, setting specific and measurable goals over time, such as over 3, 6, 9, and 12-month blocks, is critical for success. These goals should focus on understanding your role, meeting goals, developing industry knowledge, and honing specific skills. It's important to note that your plan might need adjustments as certain factors may shift over time.
Effective goal setting requires considering the 5 W's: Who is involved, What you want to accomplish, Where you need to go, When it needs to be done, and Why you want to do it. When a firm is established and its strategy is leading to profits, detailed knowledge of individual managers becomes less critical as information about the company's products, revenues, costs, and profits become more widely available. This transparency attracts investors such as bondholders and shareholders who are willing to provide financial capital to the firm.