Chapter 6: Goals and Objectives Learning Objectives Understand the nature of goals and objectives and why they are important See how our thinking about goals and objectives has evolved Know what characterizes good goals and objectives Understand the roles of goals and objectives in employee performance reviews Map out relationships among economic, social, and environmental goals and objectives Set and manage your own goals and objectives

GOALS AND OBJECTIVES IN P-O-L-C

WHAT ARE GOALS AND OBJECTIVES? Objectives are very precise, time-based, and measureable actions that support the completion of a goal WalMart * Open twenty new stores by year end Goals are outcome statements that define what an organization is trying to accomplish WalMart * Increase revenue by 20% annually

Objectives Related directly to the goal Clear and concise Stated in terms of results Begins with an action verb Specified date and/or deadline Measurable

Measurement of Objectives is Critical Provide insight into intended future direction Describe current status Reveal where the organization has been Measuring Objectives

Goals and Objectives in Planning

Management by Objectives (MBO) 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

Tie measures to drivers of success Customer Satisfaction Past Performance Customer Satisfaction Stakeholders

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? Was it truly unjustified? Are you just sensitive to criticism? If justified, schedule a follow-up appointment What have you learned? 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 Strategy incorporates triple bottom line Solid financial planning Customer loyalty & product innovation Governance & stakeholder engagement HRM, benefits options, & overall job satisfaction

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