Dr Sanyukta Jolly

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Principles of Goal Setting

Goal theory originated by Latham and Locke (1979)

stated that people perform better when they have specific and challenging but reachable goals. Acceptance of goals is achieved when: 1. People perceive the goals as fair and reasonable and trust their managers. 2. Arrangements for individuals to participate in goal setting. 3. Support is provided by the supervisor. 4. People are provided with resources required to achieve their goals. 5. Success is achieved in reaching goal that reinforces acceptance of future goals.
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Benefits and Problems of Goal Setting

Benefits Give a sense of purpose Provides an unambiguous basis for judging success Increases performance Is a means of self-management Increases subjective well being Potential Problems Lack of sufficient knowledge of goal attainment. Goal conflict among group members Fear of risk-taking Ignoring non-goal dimensions of performance Demoralization because, following success, management may set higher, impossible goals.

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Types of Goals
On going role or work goals- e.g. deal quickly with

customer queries in order to create and maintain high levels of satisfaction TargetsTasks/ Projects Performance standards Behavior Values Performance improvement Developmental/Learning
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SMART Objectives
S- specific/stretching clear, unambiguous,

straightforward, understandable and challenging M- Measurable- Quantity, quality, time, money A- Achievable- challenging but within the reach of a competent and committed person. R-Relevant- relevant to the objectives of the organization so that the goal of the individual is aligned to corporate goals. T-Time framed-to be completed within an agreed timescale.
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Integration of Goals

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KRA- Key Responsibility Areas

KRAs involves the identification of targets pertaining

to certain tasks and activities which are challenging, and stretch the capabilities of the employee.
It describes the priority areas to an employee and

subsequent working on the specified areas.

Todays organizations lay a lot of emphasis on

objectivity of performance measurement.

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Process of setting KRAs

Identification of key tasks and activities by

both employee and the manager Analyzing and determining priority areas Setting targets or goals in identified/focus areas Documenting and seeking commitment of employees Committing required resources
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Role of KRAs:
Clarify their roles
Align the roles to the organizations business or

strategic plan Focus on results rather than objectives Communicate their roles purpose to others Set goals and objectives Prioritize their activities, and therefore improve their time/work management Make value-added decisions
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 KRAs captures 80% of the work role.

The remainder of the role is usually devoted to areas of

shared responsibility. For example, the image of the organization is usually a very senior officials key result area.

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How to follow the KRA?

Enlist main day to day responsibilities/activities
For each activity, ask, Why do I do this? Review the answers to why questions, looking for

common themes or areas Identify KRAs from these themes Share KRAs , with those they report to , those they have work along with and with those who report to them.

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Some examples
HUMAN RESOURCE SPECIALIST
1. 2. 3. 4. 5. 6. 7. 8. 9.

Staffing Employee relations Human resource development Compensation planning and administration Policy development Employee benefits administration Career planning, development and strategy Statutory compliances Human resource information system
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 SALES SPECIALIST
1. 2. 3. 4. 5. 6. 7. 8. 9.

New business acquisition Territory management Customer care Account management Customer retention Interpersonal skills Negotiating skills Product and detailing knowledge Sales forecasting
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Conclusion
Setting performance criteria is useful, and tends to

work best when performance is geared to specific, measurable, or identifiable results that can be targeted, such as projects completed, sales or production achieved etc.
Goal setting is ineffective when goals are too easy,

when goals do not constitute the total job, when goal attainment is difficult to prove or measure, and when performance is the result of team efforts.
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Exercise

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