Agreeing objectives & Performance Standards

Agreeing objectives & Performance Standards

Objectives- DefinitionDescribe something to be accomplished- a point to be aimed atThey define what organizations, functions, departments and individuals are expected to achieve over a period of time

SignificanceThe setting of objectives is the management process which ensures that every individual employee knows what role they need to play and what results they need to achieve to maximize their contribution to the overall business. In essence, it enables employees to know what is required of them and on what basis their performance and contribution will be assessed

Nature of objectivesTargets & TasksTargets: quantifiable reusults to be attained that can be measured in such terms as return on capital employed, output, throughput, sales, levels of service delivery, cost reduction, reduction of reject rates.Tasks/Projects: to be completed by specified dates to achieve defined results.

Nature of objectivesWork & Personal ObjectivesWork related, referring to the results to be attained or the contribution to be made towards the achievement of organizational, functional or team goals.Personal, taking the form of developmental or learning objectives, which are concerned with what individuals should do to develop knowledge, skills and potential and to imporve their performance in specified areas for example building competencies.

Nature of objectivesLevels & Integration of Work ObjectivesCorporate Level: Related to organizations purpose, values and strategic plansSenior Management level: where they define the contribution the senior management team is expected to make to achieving corporate goalsBusiness Unit, Functional or departmental level: Where they are related to corporate objectives, spelling out the specific targets and projects to be accomplished by the unit, function or department. Team Level: where they are related to the purpose and accountabilities of the team, and the contribution it is expected to make to attain unit/departmental and corporate goals.Individual Level: where they are related to the principal accountabilities, kras, or main tasks that constitute individuals jobs and focus on the results they are expected to achieve and their contribution to team, departmental and organizational performance.

Integration of goals

Two way process of agreeing objectives

Characteristics of good objectivesConsistentPreciseChallengingMeasurableAchievableAgreedTime Related Teamwork Oriented

SMART CHECKLISTS- Specificclear, unambiguous, straightforward and understandableM- MeasurableQuatity, quality, time and moneyA- AgreedBetween individuals and their managers or team leadersR- RealisticWithin the control and capability of the individualT- TimeboundTo be completed within an agreed timescale

Performance MeasuresPerformance measures need to be agreed when setting objectives. It is necessary to define not only what is to be achieved but how those concerned will know that it has been achieved. Performance measures should identify the verifiable evidence on the extent to which the expected reusult has been achieved and the degree to which the individual or team has contributed to that result.

Defining & Agreeing ObjectivesWhat do you think are the most important things you doWhat do you believe you are expected to achieve in each of these areas?How will you or anyone else- know whether or not you have achieved them?

Steps to define & Agree objectivesDefine the overall purpose of the jobDefine personal areasDefine Targets/Tasks

Performance StandardsDefined as a statement of the conditions that exist when a job is being performed effectively.

Examples of performance StandardsPrepare and distribute management accounts to managers within three working days of the end of the accounting periodDeal with 90 per cent of customer complaints within 24 hours remaining to be acknowledged the same day and answered within five working days.Hear job evaluation appeals within five working daysMaintain a level of customer satisfaction in which complaints do not exceed 1:1,000 transactionsAcknowledge all customer orders within 24 working hours of receipt.