Performance management is an important aspect of a growing business. It is the ability to manage the overall performance of your employees and therefore be able to observe areas that need more attention to ensure success in your organisation. The importance of goal setting in performance management is also a topic we will touch on in this article. The underlying principle of goal setting in performance management is that when employees perform well in their roles and execution of their daily duties, it will have a direct positive impact on the company’s growth and its ability to meet the goals and objectives it has set for itself.
It is impossible to manage something that is not clearly defined. That is why this article aims to highlight the importance of goal setting in performance management. This article will also clearly define the goal of performance management and why it is a critical aspect of day-to-day business activities.
Setting objectives in a business, as well as personal capacity, is very important. They are set to channel your efforts towards personal development, career advancement and skill improvement. The importance of goal setting in performance management is that it serves as a commitment from an individual to meeting their objectives. The individual is then held accountable for this commitment and their actions are directed towards meeting this commitment.
In business, it is very important to ensure that all employees set objectives that are communicated between them and their managers. This communication is vital in ensuring that there is alignment between individual and business objectives.
Below, we will discuss the benefits and importance of goal setting in performance management.
· It brings clarity and a sense of direction
· It leads to a good work ethic and improves employee drive
· Increases productivity and companies meet their targets
· A sense of teamwork and shared vision
· Increase in personal developments efforts
Most employees are motivated by a sense of achievement. If an employee sets objectives and targets that become adequately met, the employee is driven to set higher and more challenging targets. This further shows the importance of goal setting in performance management. When goals are set, there are more chances of employees thriving in their different roles and responsibility. The goal of performance management is then to make sure that employees are assisted to reach these set targets.
Performance management is a system that contains all tools needed to improve employees’ engagement in their day-to-day activities and to drive productivity levels. It is a tool that management uses to track progress made during a set period (Quarterly or annually). Another goal of performance management is to encourage a good work ethic and to reward good behaviour and conduct portrayed by employees. It is a dynamic process that is not only focused on performance and targets. But the goal of performance management is to measure progress and to include feedback sessions. Through this process, employees are recognised and easily considered for opportunities such as promotions and incentives.
Another important goal of performance management is to define roles and responsibilities. It minimises the risk of confusion due to ambiguous job descriptions. Employees know exactly what is required of them and what they are measured on.
Now that we have spoken about the importance of goal setting in performance management and the goals of performance management, we conclude this topic by ensuring that when you set your objectives, you set Specific, Measurable, Attainable, Realistic and Time-Bound (SMART) objectives. This is an effective way of ensuring that meeting your objectives is a possibility.