Question

Why do we need to set performance objectives and continually monitor performance against these target levels?

Answer 1

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How are you going to get there if you don't know where you are going? The first question a small business owner should ask himself is: "What is my view of the company?" How much is the company expected to profit? To make those money, how much does it need to sell? How quickly can I grow my company? Setting specific targets will give the organization a vision and will help to define actions required to achieve clear objectives.

All these questions can be answered as the goals of a organization. Such priorities are the cornerstones of what a company owner needs to look like. It's his dream for a long time. The question is how to turn these images of a dream into reality. That's the place for the goals

Quite often, long-term goals become useless blather in the minds of employees about the direction of the company. They are discussed maybe once each year at the annual company dinner. But these goals don't have teeth, and they don't say anything about how they would be accomplished.An owner says he wants to increase profits and share more of the company's wealth with the employees. Great idea! But what, specifically, must employees do to make that happen? Answer: The owner must construct objectives and share them with the employees.

Objectives as Steps to Achieve Goals

The targets are instructions with detailed plan measures for achieving the owner's long-term goals. They set the parameters and tell each employee how responsible he or she is to achieve the ultimate objectives of the business.

Aspirational goals are an excellent thing for a company, but the value of translating these aspirations into practical, realistic goals is hard to overestimate. The priorities of the business are short-term action items that help direct the tasks and workload of all staff, from managers to stockrooms. You are also developing a structure to quantify progress to your goals and to recognize weak spots which require attention by focusing on objectives with measurable results.

Effective objectives that help everyone achieve a company's goals follow the SMART outline:

• Specific: Direct accountability is assigned to targets and is transparent.
• Tangible: success must be tangible in working on the goals. Management and employees must be constantly aware of their progress towards the targets they will achieve: workers must believe that they can achieve the goals; otherwise they will not try.
• Relevant: The goals will match the company's objectives. Growing goal should be a piece of the jigsaw that is part of the course of the business.
• Timely: Schedule: Schedule for goals. Employees should relax their energies without being time limited, and not work desperately on their duties.

Importance of Objectives:

Goals decide where the owner wants the organization to go; goals determine how. Organizations that do not establish long-term goals and do not meet job objectives can grow and expand slowly as they do expand.
Goals to communicate and delegate employee performance responsibilities are relevant.

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