Performance Management is a hot topic within companies of today’s business world. Since a manager is someone who is responsible for the behavior and work produced by each individual employee; it is important to have a structured approach to how individual’s performance is managed. Most companies today use a system termed “performance management”. Performance management is a continuous cycle of improving individuals’ job performance using goal setting, feedback and coaching, and rewards and positive reinforcement. (Kreitner and Kinicki, 2008). This paper will focus solely on the goal setting process of the performance management cycle, as goal setting clearly is in need of an overhaul, since over 81% of employees surveyed do not have clearly defined goals.
Goal Setting is a formal process for personal planning, and is a form of motivation that a person should use so they can be successful (personally and professionally). The first step in goal setting is to determine the type of goal. If there is a specific result from the task then the goal is a performance out-come goal. If the task enhances the development of the employee, then this goal is a learning goal.
Once an employee and manager has determined the type, the next step would be to set the goals. It is important that employees understand how to write goals. Using the SMART system (Specific, Measurable, Attainable, Results oriented and Time bound) will help with writing the goals. Goals should be straightforward and emphasize what you want to happen. Specifics help us to focus our efforts and clearly define what we are going to do. Managers and employees also need to remember that if you can't measure it, you can't manage it. In the broadest sense, the whole goal statement is a measure for the project; if the goal is accomplished, there is success. Goals need to stretch employees slightly so they feel they can do it and it will need a real commitment. Devise a plan or a way of...