Chapter 6 Goals and Objectives Learning Objectives v
Chapter 6: Goals and Objectives Learning Objectives v Understand the nature of goals and objectives and why they are important v See how our thinking about goals and objectives has evolved v Know what characterizes good goals and objectives v Understand the roles of goals and objectives in employee performance reviews v Map out relationships among economic, social, and environmental goals and objectives v Set and manage your own goals and objectives
GOALS AND OBJECTIVES IN P-O-L-C
WHAT ARE GOALS AND OBJECTIVES? Goals are outcome statements that define what an organization is trying to accomplish Wal. Mart * Increase revenue by 20% annually Objectives are very precise, time-based, and measureable actions that support the completion of a goal Wal. Mart * Open twenty new stores by year end
Related directly to the goal Clear and concise Measurabl e Objectiv es Specified date and/or deadline Stated in terms of results Begins with an action verb
Measurement of Objectives is Critical Measuring Objectives Reveal where the organization has been Describe current status Provide insight into intended future direction
Goals and Objectives in Planning
Management by Objectives Peter Drucker Principles behind MBO; • What the organization is trying to achieve. • The role of employees in accomplishing those objectives. Management by Objectives (MBO) A process in which a manager and an employee agree upon a set of specific performance goals, or objectives, and jointly develop a plan for reaching them
Seeking A Balance The Move Away From MBO
THE BALANCED SCORECARD
Advantages of Balanced Scorecard More clearly will tie goals and objectives to the organizations’ vision, mission and strategy Moves beyond the financial measurement of just goals and objectives
Using the Balanced Scorecard to Translate Goals into Activities
The Balanced Scorecard in Practice Translating the vision Communicating and linking Business planning Feedback and learning
Customer Satisfaction Past Performance Stakeholders Tie measures to drivers of success
Using Goals and Objectives in Employee Performance Evaluation Performance evaluation based on clear goals and objectives leave little doubt about the desired outcome
Integrating Goals and Objectives with Performance Evaluation A performance evaluation is a constructive process to acknowledge the performance of an employee Builds trust Maintains credibility Motivates Clarifies expectations Identifies strengths and weaknesses
Individual Performance Review Preparation • Document achievements • Organize as evidence of results gained What if the result is unfavorable? What have you learned? • Was it truly unjustified? • Are you just sensitive to criticism? • If justified, schedule a follow-up appointment • Did you have clear goals and objectives such that your performance was easy to document? • Can you take away valuable information?
Integrating Goals and Objectives with Corporate Social Responsibility GE combines environmental responsibility with the business strategy of providing the best wind energy devices.
Goals and Objectives should… reinforce the organization’s strategy… which ultimately achieves the vision and mission of the organization.
Dow Jones Sustainability Index defines Corporate Social Responsibility A business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments
Five areas of competence Dow Jones Sustainability Index HRM, benefits options, & overall job satisfaction Strategy incorporates triple bottom line Governance & stakeholder engagement Solid financial planning Customer loyalty & product innovation
Top Ten motivators driving corporations to engage in CSR Economic considerations Ethical considerations Innovation and learning Employee motivation Risk management or risk reduction Access to capital or increased shareholder value Reputation or brand Market position or share Strengthened supplier relationships Cost savings
Measuring Personal Objectives and Performance SMART Criteria Specific - Answer the six "W" questions Measurable - How much or how many? Attainable - Growth places you closer to the goal Realistic - Are you willing and able to apply yourself? Timely – Identify the time frame
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