Setting Goals & Objectives Training

Introduction

Of all the functions involved in management, planning is the most important. As the old saying goes, Failing to plan is planning to fail. Setting goals and objectives is the first and most critical step in the planning process. Employers need to be sure all employees are well trained in how to set these important performance measurements.
This sample presentation is intended for presentation to all employees. It is designed to be presented by an individual who has knowledge of the basics of setting goals and objectives, of the employers own policies and practices on goals and objectives setting, tactical and strategic planning, and performance management. This is a sample presentation that must be customized to include and match the employers own policies and practices.
SHRM 2008 2

Objectives

At the close of this session, you will be able to:

Recognize the difference between goals and objectives Understand the importance of setting goals and objectives Describe how goals and objectives are set at (name of company) State what SMART objectives are

SHRM 2008

Goals vs. Objectives

Although the terms goals and objectives are often used interchangeably, there is a difference between them: Goals
General Intangible Broad Abstract Strategic long-range direction, set by top executives

Objectives
Specific Measurable Narrow Concrete Tactical short-range, set by mangers to accomplish goals

SHRM 2008

Quiz Goals vs. Objectives

Which of these are goals and which are objectives?

1. 2. 3. 4. Increase profitability Improve community relations Provide short-term disability insurance to employees by mid-year Improve employee computer skills
*Note to presenter: Ask Is this a goal or an objective? If a goal, ask what the related objective would be if an objective, ask what the general goal might be

SHRM 2008

Importance of Setting Goals & Objectives

Planning is the most important management function.

>

As the old quote goes, Failing to plan is planning to fail

Setting goals and objectives is important because it is the first and most critical step in a companys planning process.

SHRM 2008

How We Set Goals & Objectives

At (name of company) top management establishes our corporate goals each year and for the next 3-5 years as part of the companys strategic plan. Under our Management by Objectives (MBO) process, individual managers use these goals to set their departmental objectives, their own objectives, and their employees individual objectives. We evaluate quality of performance of managers and employees based primarily on their accomplishment of these objectives.

SHRM 2008

SMART Objectives

At (name of company) we set SMART Objectives:

S Specific M Measurable A Achievable R Realistic T Time-oriented

SHRM 2008

Specific Objectives

Specific objectives are:

Concrete Detailed Focused Well-defined Straight-forward Action-oriented

SHRM 2008

Specific Objectives contd.

When setting objectives that are specific, ask:

What am I going to do? Use action verbs such as develop, execute, conduct, build Why is it important to do this? Who is going to be involved? When do I want this to be completed? How am I going to do this?

SHRM 2008

10

Measurable Objectives

Measurements for objectives help you know when you have accomplished them.
If you set an objective that is measurable, when you complete it you have tangible evidence of completion.

SHRM 2008

11

Measurable Objectives contd.

When setting objectives that are measurable, ask:

How will I know when this objective has been achieved? What measurements can I use?

SHRM 2008

12

Achievable Objectives

Achievable objectives are those that you can actually accomplish (something you can really do within the time frame set) and not an aspiration or vision.
Achievable objectives need to challenge you but not so much so as to be unattainable or to cause frustration in being unable to complete.

SHRM 2008

13

Realistic Objectives

Realistic objectives are those that you have the resources to accomplish including:
Skills > Funding > Equipment > Staff
>

SHRM 2008

14

Realistic Objectives contd.

When setting objectives that are realistic, ask:

Do I have the resources to accomplish? > Do I need to rearrange my priorities to accomplish? > Is it possible to complete this objective?
>

SHRM 2008

15

Time-Oriented Objectives

Time-oriented objectives are those which have deadlines for completion. The time frames create sufficient urgency and lead to action.
The deadlines, just as with overall objectives, must be achievable and realistic. For a complex objective, break into small parts with a date for completion for each.

SHRM 2008

16

Time-Oriented Objectives contd.

When setting objectives that are time-oriented, ask:

What is the earliest yet achievable and realistic date for this objective to be completed? > Have I included this date in the statement of the objective?
>

SHRM 2008

17

Summary

Although the terms goals and objectives are often used interchangeably, there are significant differences:
>

Goals are general, intangible, broad, abstract, and long-range directions generally set by top executives Objectives are specific, measurable, narrow, concrete, and are short-range plans generally set by managers to accomplish goals.

>

SHRM 2008

18

Summary contd.

Setting goals and objectives is important because it is the first and most critical step in the planning process.
Under our MBO process, top management sets our corporate goals. Managers use these goals to set department objectives, their own objectives and their employees objectives.

SHRM 2008

19

Summary contd.

At (name of company) we set SMART Objectives

S Specific M Measurable A Achievable R Realistic T Time-oriented

SHRM 2008

20

Questions? Comments?

SHRM 2008

21

Course Evaluation

Please be sure to complete and leave the evaluation sheet you received with your handouts.
Thank you for your attention and interest!

SHRM 2008

22