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CIPD Level 33CO01AC 1.2

Understanding Organisational Goals and Their Hierarchy

3CO01Business, culture and change in context

This CIPD Level 3 video, part of unit 3CO01 – Business, culture and change in context, explores understanding organisational goals and their hierarchy in relation to assessment criteria AC 1.2. The video examines how organisations develop long- and short-term vision and goals, discusses the importance of strategic planning for business continuity, and demonstrates how objectives link to policy and people practices across different business types and structures. By watching, you'll gain clarity on why planning is essential for organisations, how goals are determined and communicated, and the critical relationship between organisational objectives and HR strategy.

What this video covers

Covered in this video for 3CO01 Assessment Criterion 1.2 is the concept of an organisational goal hierarchy, tracing how a single organisation's purpose connects downward through vision, mission, values, and goals to the specific targets set for departments, teams, and individuals. The distinction between long-term strategic goals, which the video frames as spanning multiple years and orientated towards future market position or growth, and short-term goals, which follow SMART principles around specificity, measurability and time-bound delivery, sits at the centre of the discussion. Both types are examined in terms of what they look like in practice and how they function as benchmarks against which progress can be assessed.

The video addresses why this cascading structure matters for organisational coherence, examining the relationship between an organisation's aspirational future state, its reason for existing, its operating values, and the concrete targets it sets. A healthcare sector scenario is used to illustrate long-term goal-setting, while examples such as reducing staff turnover within a twelve-month window and launching a new product before a financial year closes are used to ground the short-term discussion. The logic running through the video is that every goal at every level should trace back to the organisation's fundamental purpose, making goal-setting an exercise in sustained alignment rather than isolated target management.

For people professionals studying 3CO01, the video draws an explicit connection between understanding this hierarchy and the practical demands of workforce planning, recruitment targeting and training prioritisation. It considers how HR activity needs to be oriented around what the organisation is actually trying to achieve, and how employee understanding of organisational goals affects engagement and meaning at work. The discussion of why planning underpins business continuity is framed through this same lens of goal alignment, connecting the indicative content on planning necessity directly to how people practices are designed and justified.

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Assessment Criteria 1.2

Discuss organisational goals and why it is important for organisations to plan.

Indicative Content

Organisations’ long- and short-term vision and goals, types of business, structure, documentation, employment climate. How organisations inform and determine their objectives and planning and how these link to policy and people practices. Why planning is necessary for business continuity.

What You'll Learn

Video covering: Understanding Organisational Goals and Their Hierarchy

About 3CO01Business, culture and change in context

CIPD Level 3
3CO01
Learning Outcome 1

This unit considers the impact of external influences and how the digital and commercial environment shapes businesses and the culture within which they operate. It considers the importance of people’s behaviour on organisational culture and its ability to manage change effectively.

View all 3CO01 assessment criteria

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