What Is Goal Setting?

Goal setting or performance planning is a form of collaborative discussion between a manager and individual team members.

It typically occurs at the start of a performance cycle to set clear and mutual expectations for successful performance. Goal setting discussion involves the creation of performance goals, development goals, and operational goals.

It also sets clear performance expectations. Goals are different from routine objectives since they encompass a higher level of the statement. Goals help in providing an overall context for what the project is expected to achieve.

Best Practices for Goal Setting

Establishing the right goals is vital to completing individual projects and achieving organizational objectives successfully. These are a few best practices that should be employed during goal setting.

Aligned with the overall mission and job description
Created in collaboration by the employee and manager
Include at least one development goal
Include multiple specific performance goals
Incorporate competencies for success
Measurable clearly communicates, and action-oriented
New employees must have a goal-setting conversation within the first six months
Shared across the departments for enhanced collaboration and alignment
Frequent revisits and updates to provide appropriate coaching and feedback

HR Goal Setting

Human Resources is an important component of any successful business model. Infrastructure can quickly become fragmented without proper HR management. The same holds true when it comes to goal setting. The fundamental objective and goal of any HR department a few years ago was to hire the right people for the right job.

However, things have become highly complicated now. The general goals and objectives of the typical Human Resource department have incorporated goals for the purpose of engagement, innovations, productivity, performance, and sustainability of their organization.

HR goal setting can be as simple as identifying and satisfying the needs of all employees, ensuring maximum development and effective utilization of human resources, or something complex like helping achieve organizational goals with effective HR strategies.

Employee Goal Setting

Supervisors not only guide employee performance with measurable and attainable goals but also strengthen business reputation and process. Employee goal setting is one of the most important responsibilities of any manager or supervisor.

It is important to follow all goal-setting principles while setting employee goals. Managers must make sure to involve employees in the process and carry out continuous follow-ups, feedback, and updates. Employee goal-setting can incorporate performance, operational, development, and personal goals.

Supervisors can work with their individual team members to set goals, like taking 60 minutes each week throughout Q3 to complete optimization training or seeking a minimum of 3 opportunities over the next quarter to improve resilience.

OperationalGoals

Operational goals refer to day-to-day goals that are specific to daily requirements and tasks. These are usually created so a business can operate smoothly and more efficiently. Efficient operational goals make it easier for employees to fulfill their responsibilities. It also propels excellence within the work environment.

Operational goals are typically characterized by the following:

Associated with a budget
Limited to a single division or department
Can be tracked
Actionable and measurable
Have shorter time frames

Examples:

Check workstation for potential hazards at the start of the shift
Reduce injury rates by 45%
Reduce the number of times a customer contacts within a specified period

Operational Goals

Operational goals are typically characterized by the following:

Associated with a budget
Limited to a single division or department
Can be tracked
Actionable and measurable
Have shorter time frames

Examples:

Check workstation for potential hazards at the start of a shift
Reduce injury rates by 45%
Reduce the number of times a customer contacts within a specified period

Performance Goals

Performance goals are developed for projects, initiatives, or key metrics. They relate to a specific task within the current role. These goals are intended to be clear and measurable as per pre-specified performance standards. Goal settings must also define clear expectations for success.

Performance goals are:

Related to deliverables and job responsibilities
Appropriate to a particular level of position
Aligned to higher goal levels

Examples:

Complete managerial training course before Q4 ends
Get hands-on knowledge about new collaboration software before implementing it next fiscal year
Gain upward feedback to establish improvement areas before Q2 ends

Development Goals

Development goals are set to enhance or acquire specific skills, knowledge, or behaviors that are required to perform at a higher level in the current capacity. These goals help in preparing a worker for fresh responsibilities in the future.

It is important for development goals to be aligned with organizational needs – current and future. They should focus on individual employee talents, strengths, and interests.

Characteristics of development goals are:

Supports higher level performance
Learning oriented

Examples:

Complete an advanced Excel training course by X date to prepare budget reconciliation reports
Prepare the office assistant team to participate in cross-training to cover critical functions during absences without a hitch by X date
Improve team leadership skills and communication by X date to chair the planning team and take on greater management responsibilities

Managerial Goals

Management goals are a system of plans that incorporates the results a company is attempting to achieve. These goals are usually communicated to the employees.

Management goals tend to clearly define specific objectives and are designed to be attainable. It is important to have a deadline attached to managerial goals to fuel realistic achievement.

Example:

Increase customer base by 15% this quarter
Train employees on new software before installing them
Create a diverse workforce by hiring at least 25% from minority groups

S.M.A.R.T Goals

S.M.A.R.T is an acronym referring to Specific, Measurable, Achievable, Relevant, and Time-based. S.M.A.R.T framework allows for creating carefully planned and clear goals that can be tracked. It is possible that the goals set in the past were not achieved because they were poorly framed, aggressive, or vague.

S.M.A.R.T goals can easily solve the challenges faced by workers while trying to achieve their objectives. S.M.A.R.T system allows for establishing a strong foundation for achieving all types of goals, whether performance, developmental, project, or any other.