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2. PLANNING
PERFORMANCE
The
difference between GOALS and OBJECTIVES
GOALS
comprise broad statements of desired conditions or outcomes,
normally set by organizations or business units during strategic
planning (e.g.: "To have market share of 50% by 2020").
OBJECTIVES, on the other hand (narrower in scope), are statements
of specific results to be achieved by teams or individual
employees to accomplish a goal, and are measured quantitatively
or qualitatively (e.g.: "To achieve average sales of
$300 000 per month from 1 July 2015). A goal normally comprises
of two or more objectives.
Why
set Objectives?
The
setting of objectives affect performance in at least three
ways:
- When
employees are given specific objectives, they tend to perform
better than when they are told to do their best, or when
they receive no guidance at all.
- Specific
objectives reduce uncertainty about what is expected, and
focus behavior in the direction of the objectives rather
than elsewhere.
- Objectives
energize behavior, motivating people to put in extra effort,
to live up to the challenge of achieving them.
Setting
Objectives and Standards: A Participative, Collaborative Process
Objective
setting should be a face-to-face, participative and collaborative
process between employees and their direct line managers at
all levels in the organization. Collaboration will:
- Add
to the quality of the decisions being made.
- Increase
an employee's motivation and commitment to achieve the agreed
objectives.
- Effect
the employee's believe that the objectives are achievable.
- Ensure
more realistic objectives as employees normally know best
what they are capable of achieving, and what resources will
be needed.
Mutual
agreement regarding objectives and performance standards is
the ideal (and preferable), but not always possible. In the
end, line managers will have the final say in this as long
as they are reasonable in their expectations.
Some cascaded
objectives may also be in the form of directives from above,
and therefore not negotiable, but, at the very least, there
should be mutual understanding, acceptance and buy-in.
During
the collaborative process of developing performance standards
for a continuous (routine) objective or function, involve
all of those employees whose work will be evaluated according
to those standards. For the sake of fairness and consistency,
also consider collaborating with other units in your organization
or department if employees reporting to different line managers
perform the same tasks or functions.
Operational
Sources for Objectives
In the
previous section it was discussed how corporate goals need
to be cascaded all the way down the organization to the point
where objectives for individual employees (or teams) are set.
This is an important "strategic" source for individual
objectives. But it is not as if we have to wait every year
for this cascading process to reach individuals - this might
take months!
There
are many other "operational" sources for objectives
that pressurize us continually - things that demand our attention
and action throughout the year, such as:
- Existing
team/unit operational objectives
- Previous,
uncompleted performance measures
- Job/Role
Descriptions
- New
products and services
- New
technology
- Anticipated
market conditions
- Currently
available performance data, e.g. sales statistics, production
reports, customer feedback
- Competitor
moves
- Other
threats, opportunities and crises posing themselves continuously
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