Establishing achievable and reasonable performance targets remains an important component of any organization. Such goals therefore act as a guideline in the business should the owners have set certain goals as their ultimate targets and help the workers to keep their eyes on the ball. However, setting achievable performance targets can be a very complex process that need strategy, expertise and duration. Again, in this article we will look at the process of setting therefore realistic performance goals, respond to some of the most common questions and finally highlight a brief conclusion.
1. In detail comprehend the reason for performance goals:
Performance goals have the major objective of assist firms in achieving their objectives efficiently and effectively in relation to strategic goals. As management goals, these objectives are crucial for ensuring that personnel perform in sync with the laid down goals, for monitoring performance, and thus the success of the company.
Performance targets therefore need to be set consistent with the existing Strategic business Vision, Mission and Values. This will assist them in ensuring there strategic goals are aligned to their overall business strategy.
2. Identify success factors that can be measured or current goals and objectives:
Key performance indicators can also be simply defined as measurable attributes of the business performance that evaluates the accomplishment of objectives. It’s important that these indicators are in tune with the goals because they will be used to evaluate both success and failure in achieving the goals. Examples of KPIs are; sales increase, customer satisfaction, turnover rate, ROI among others.
3. Identify areas of improvement:
When setting out to develop performance goals, it is important that the business establish areas of deficiency. This can be attained by evaluating their performance currently with especial reference to both the internal and the external environment.
Such areas of development may be such things as enhancing the level of customers’ satisfaction, efficiency of business procedures or employee morale.
4. Establish SMART goals:
Introducing the five letters of the acronym that comes from the first letters of their terms, SMART means Specific, Measurable, Achievable, Relevant, and Time-bound. These are some of the features that define realistic performance goals. Specific goals must state what is expected or planned as an objective while measurable goals must bear figures that will be fairly easy to gauge.
Possible goals are the goals that can be attained by following appropriate strategies while proper goals should relate to the organizational goals and objectives. In addition, time-bound goals should define a clear timeframe that will allow eliciting appropriate level of concern in employees and ensuring they are aware of time constraints to expected goals achievement.
5. Engage the employees in the formulation of goals:
It is thus important to engage the employees in formulation of the performance goals so that they can own them. Given that its employees can present their ideas, feedback and input regarding the goals formulated, businesses can be able to come up with goals that should be achieved in order to meet the businesses’ set goals and objectives. This will also require making sure that employees have the skills, tools, and/or staff needed to make these objectives happen.
6. Create an action plan:
It is always important to have a plan right after setting performance goals, in a bid to outline the actions that need to be followed and the time frame within which they should be completed.
This should involve how responsibilities are to be divided; when each step is expected to be completed and what challenges are expected to be encountered along the process and their correction. Substantial coordination and progress reporting will be necessary to make sure that will work through the set action plan and the recommendations will be successfully applied.
7. Implied is the continued assessment and evaluation of performance:
It helps to assess whether the goals devised are being met, or otherwise, adjustments can be made when performance is reviewed frequently. This should involve the monitoring of KPI, feedback from the employees as well as the stakeholders and monitoring of the implementation of the action plan. In the case where progress has slowed or goals are unattained – goals and/or the action plan may have to be reconsidered.
Terms and conditions, disclaimer and Frequently Asked Questions (FAQs)
Q1: What are the differences between a performance goal versus a personal goal?
A1: These are objectives that are laid down by an organization, regarding how an employee should perform, in order to enhance on the laid down goals and objectives of the organization. Self oriented goals on the other hand are goals that an individual sets in order to bring about personal or rather a professional change.
Q2: In how many months the performance goals should be checked and changed?
A2: It is important that performance goals be monitored and evaluated on a regular basis to determine their relevance, and their feasibility. As a rule, goals are discussed monthly or quarterly in order to assess the state of the affairs and make the necessary changes.
Q3: It concerns with the Success Factors – Performance: What would be the best procedure to continue encouragement with regards to performance goals?
A3: While striving and attaining performance objective, motivation can be a big problem, nevertheless, businesses can motivate their workers by promising them some incentives or appreciation for hard work, constant encouragement and reinforcement and create a favorable organizational culture that enhances the welfare of workers.
Q4: Is it wrong to achieve more than what was set on the standards?
A4: Of course, setting up unachievable performance standards is not beneficial for a business, as they result in demotivated workers being overworked which often leads to high turnover. They may also have such detrimental effects as absence of mutual trust and transparency of the organizational process, which in turn defines the low level of effectiveness and success.
Conclusion:
Setting operable performance targets is widely applicable in any organization and constitutes a critical component of any efficient set up. The strategies mentioned in this article will help business to Transform their Corporate Goals into SMART, Measurable and Attainable business objectives. By engaging the employees in goal setting process, developing an action plan, and often assessing and evaluating performance, organizations will have optimal ways to ensuring that the outcome results are achieved and success realized.
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