In a commercial firm the broad objective is determined in
a little different manner, but as with the military agency, the
objective of the company implies a desired harmony with the
environment. For example, the objective might be to show a
10-percent return on investment after taxes. That objective
statement implies a corollary: the company will not get
10-percent return on investment within a limited market
spectrum unless it satisfactorily meets the needs of its customers. In other words, the company must adapt its product
and price to conditions in the environment.
In discussing the concept of objectives, two other considerations should be introduced. First, objectives can and do
change. If environmental requirements change significantly,
the objective probably should change—and the quicker the
better. Second, an organization’s objectives are not necessarily subscribed to by its members. Merely formalizing the
objectives of an organization does not mean management
and employees are always working toward those objectives.
This consideration is most relevant in today’s society where
commitment is critical to an organization’s success. A leader
is challenged to understand the organization’s objectives,
communicate them to the unit’s members, and work for their
commitment.