[2] Operational objectives are usually set by middle managers for the next six to twelve months based on an organisation's aim.
Peter Drucker suggested that operational objectives should be SMART, which means specific, measurable, achievable, realistic, and time constrained.
[3] First, an operational objective should be specific, focused, well defined and clear enough rather than vague so that employees know what to achieve via the work.
[3] If the state of economy gets worse, a firm would like to change its objectives so that it can mainly focuses on survival of the business.
[3] For new businesses, survival would be their main priority, as they are likely to face a number of problems, such as negative cash flows and intense competition.
By achieving short term goals, employees might feel a great sense of accomplishment and this would help to improve their motivation.
According to a research conducted by Rodgers, R. and Je Hunter, management by objectives (MBO) has been shown to increase productivity.
[3] In order to set objectives and plan for the next 6 to 12 months, they need to have a deep understanding of business's current position.
According to Peter Drucker, rewards such as recognition, appreciation and performance-related pay need to be provided for achieving objectives to motivate employees and raise efficiency.
[7] Operational objectives help to control and unify an organisation, as they are short-term goals, which are consistent with its aim.
By stating an organisation's operational objectives specifically, they would provide employees a guidance and direction.
[12] Operational objectives tend to be specific and measurable, so that they can help an organisation to achieve its long term goals.