Goal Setting
At the end of each year, we inherently reflect upon our accomplishments for that year. Have we been successful in achieving what we set out to do? Have we exceeded our expectations as well as the expectations of others? If we have not met expectations, what will be done to improve? After evaluating our performance, we focus our sights toward setting goals for the upcoming year. This week’s blog will address the goal setting process within the business environment, and offer tips for crafting viable individual goals and an individual development plan.
SMART Goals
A widely accepted business practice is developing “smart” goals. This acronym defines goals as: specific, measurable, achievable, realistic, and timely. Developing goals is essential to both the manager and employee for evaluating performance and establishing a plan for continuous development and improvement.
First, your goal must be specific. It must be clearly defined and address what will be accomplished; how the goal will be accomplished; and why the goal will be accomplished (i.e. what is the reason or what is the benefit of achieving the goal). Second, the goal must be measurable. Short-term or periodical milestones should be identified to evaluate progress in meeting the goal. Periodical milestones help gauge progress and determine if the goal will be completed as planned, or if there is a need to readjust and reforecast the goal.
Third, the goal must be achievable. Have you set a goal that will challenge you? Do you possess the knowledge and skills to complete the goal? Setting a goal that is not attainable may adversely impact your morale and motivation. To help ensure an achievable goal has been established, it is a sound practice to have agreement between manager and employee on the set goal. Fourth, the goal must be realistic and results-oriented. The goal must be relevant to the organization, and can be achieved with the appropriate employee knowledge and available resources. Fifth, the goal should be timely. Every goal should be defined with a timeframe for completion. Again, the timeframe should present a challenge and precipitate a sense of urgency in providing a tangible, quality result.
Alignment of Employee Goals and Organizational Goals
The next step in the goal setting process is critical. If your goals are not aligned with your organization’s goals and objectives, it does not matter how “smart” they are. You will not receive support from the leaders and managers in your organization to meet those goals. Further, you may (will) encounter significant resistance and disdain towards conducting activities that will benefit your personal growth and development at the expense of the organization. In this scenario, you have not established a smart goal, but a “dumb” goal. A dumb goal can be characterized as one that is: Detrimental to the organization’s objectives; Undermines the organization’s objectives (and/or is unreasonable); Mis-aligned with the organization’s objectives; and is Broadly defined without enough specifics to be understood or accurately evaluated.
Part of the leader’s role in the organization is to reward employees who consistently demonstrate the organizations’ desired behaviors and attitudes, and who deliver the organization’s desired results. Developing and attempting to execute “dumb” goals will provide the opposite leadership reaction. Employees who are not aligned with the organizational goals, objectives, and mission will be alienated and will not be rewarded.
Implications of Setting “Dumb” Goals
The organization objective is to make a profit. If your individual goals and individual development plan does not align with the organizational goals and objectives, you will not have the support of your management team in achieving those goals. If your personal goals require financial assistance, or time away from the job for classroom training, you may not receive that assistance. Moreover, the degree of resistance could result in termination. For example, your organization’s goal for 2010 may be to improve profitability by decreasing operating costs. The desired method for cutting costs may be reducing staff and eliminating unnecessary tasks. If your personal goals and individual development plan do not support this organizational goal, you could find yourself as part of that planned workforce reduction.
In order to receive support for individual goals and development, you must first understand the organizational goal; ensure your individual goals will contribute to the success of the organizational goal; and clearly articulate the expected results and benefits to the organization of accomplishing your goal. In addition, make sure to include periodic milestones in order to review your progress. These milestones can serve as an ideal mechanism for communication and interaction with your manager/leader on your work performance.
Finally, the goal setting process must be an open, honest dialogue between manager and employee. All established goals should be agreed upon – by both parties. Lack of communication leads to ineffective and unproductive employees. Open and honest dialogue ensures that both manager and employee have a vested interest in successful completion of the goal, and facilitates a much simpler and stress-free end of year performance review.
More information on goal setting and the performance evaluation process can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).
Feedback to the bi-monthly blog entry is always welcome.
Tuesday, December 29, 2009
Sunday, December 13, 2009
What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)
Employee Performance Reviews
As the end of the year rapidly approaches, managers focus on the employee performance evaluation process. For both managers and employees, performance evaluations have unfortunately precipitated undue stress and uncertainty. This week’s blog addresses performance evaluations as a beneficial mechanism for employee communication, motivation, and development.
Communication
Open and honest communication between employee and manager is an essential component of organizational effectiveness and productivity. One of the basic leadership guidelines is to clearly articulate and communicate the organization’s mission, goals, and objectives to all employees. When conveying the organization’s direction, this communication can be done as a town-hall meeting, a formal/informal group discussion, or on an individual basis. But once the communication is done, feedback on one’s performance in meeting expectations is typically one-on-one.
To be effective, communication must also be done consistently. An end of year performance review should not be the one and only time an employee receives feedback on their performance. While there are no set guidelines on how often feedback is given, some organizations and managers have experienced significant success in conducting weekly or monthly performance discussions with employees. Further, there are highly motivated employees who are willing to take the initiative and ask their manager to provide input on their (the employee’s) performance. Conducting such informal reviews and providing employee feedback minimizes any potential “surprises” in the end of year performance review.
Employee Performance Reviews and Employee Motivation
Another leadership cornerstone of organizational effectiveness and productivity is to reward employees who consistently perform their duties above expectations while demonstrating the desired behaviors and attitudes of the company. The employee performance evaluation process may help to administer monetary rewards, employee recognition, and promotion opportunities. If an employee’s performance is producing operational and/or financial success for the company, the performance review is an appropriate avenue for discussing individual rewards and recognition for hard work.
On the other hand, the performance review discussion is also the appropriate avenue to discuss any work-related deficiencies and the need for improvement. When discussing employee work deficiencies, managers must provide specific examples of what was done wrong; what the impact of the poor performance was; recommendations on how to improve; and a sincere commitment to help by removing any barriers that impedes the employee from doing a good job. If the negative impact of poor performance and the consequences of continued poor performance are clearly explained, it may serve as an incentive to the employee for immediate improvement. If the negative impact of poor performance is not communicated, the result may be continued poor work performance, and poor operational/financial results.
Employee Performance Reviews and Employee Development
The third and final benefit of the employee performance review process is to identify employee development opportunities. Employees who are passionate about doing a good job want input on how they are doing and how they can continuously improve. Highly motivated and high potential employees also have individual development plans. These development plans describe their strengths, weaknesses, and individual goals and aspirations.
An important manager role is to understand their employees’ individual goals and ensure employees’ individual goals align with the organization’s goals. Communicating and aligning organization and employees goals should be done at the beginning of the year between manager and employee. Expectations and desired results (for both sides) should be discussed and accepted at that time. If there is agreement, acceptance, and alignment of the performance expectations at the beginning of the year, the performance evaluation discussion will be easier with minimal degrees of stress, anxiety, and uncertainty. The next blog entry will discuss the goal setting and individual development plan in more detail.
More information on employee performance reviews can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).
Feedback to the bi-monthly blog entry is always welcome.
As the end of the year rapidly approaches, managers focus on the employee performance evaluation process. For both managers and employees, performance evaluations have unfortunately precipitated undue stress and uncertainty. This week’s blog addresses performance evaluations as a beneficial mechanism for employee communication, motivation, and development.
Communication
Open and honest communication between employee and manager is an essential component of organizational effectiveness and productivity. One of the basic leadership guidelines is to clearly articulate and communicate the organization’s mission, goals, and objectives to all employees. When conveying the organization’s direction, this communication can be done as a town-hall meeting, a formal/informal group discussion, or on an individual basis. But once the communication is done, feedback on one’s performance in meeting expectations is typically one-on-one.
To be effective, communication must also be done consistently. An end of year performance review should not be the one and only time an employee receives feedback on their performance. While there are no set guidelines on how often feedback is given, some organizations and managers have experienced significant success in conducting weekly or monthly performance discussions with employees. Further, there are highly motivated employees who are willing to take the initiative and ask their manager to provide input on their (the employee’s) performance. Conducting such informal reviews and providing employee feedback minimizes any potential “surprises” in the end of year performance review.
Employee Performance Reviews and Employee Motivation
Another leadership cornerstone of organizational effectiveness and productivity is to reward employees who consistently perform their duties above expectations while demonstrating the desired behaviors and attitudes of the company. The employee performance evaluation process may help to administer monetary rewards, employee recognition, and promotion opportunities. If an employee’s performance is producing operational and/or financial success for the company, the performance review is an appropriate avenue for discussing individual rewards and recognition for hard work.
On the other hand, the performance review discussion is also the appropriate avenue to discuss any work-related deficiencies and the need for improvement. When discussing employee work deficiencies, managers must provide specific examples of what was done wrong; what the impact of the poor performance was; recommendations on how to improve; and a sincere commitment to help by removing any barriers that impedes the employee from doing a good job. If the negative impact of poor performance and the consequences of continued poor performance are clearly explained, it may serve as an incentive to the employee for immediate improvement. If the negative impact of poor performance is not communicated, the result may be continued poor work performance, and poor operational/financial results.
Employee Performance Reviews and Employee Development
The third and final benefit of the employee performance review process is to identify employee development opportunities. Employees who are passionate about doing a good job want input on how they are doing and how they can continuously improve. Highly motivated and high potential employees also have individual development plans. These development plans describe their strengths, weaknesses, and individual goals and aspirations.
An important manager role is to understand their employees’ individual goals and ensure employees’ individual goals align with the organization’s goals. Communicating and aligning organization and employees goals should be done at the beginning of the year between manager and employee. Expectations and desired results (for both sides) should be discussed and accepted at that time. If there is agreement, acceptance, and alignment of the performance expectations at the beginning of the year, the performance evaluation discussion will be easier with minimal degrees of stress, anxiety, and uncertainty. The next blog entry will discuss the goal setting and individual development plan in more detail.
More information on employee performance reviews can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).
Feedback to the bi-monthly blog entry is always welcome.
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