What is the motive or the theory behind Performance Appraisal? IV (Goal Setting)

Goal Setting

Our next Step that we are going to discuss is Goal Setting. It is one of the most important aspects of Performance Appraisal Cycle where one’s growth is aligned with the Vision of the Organization .It is commonly seen that very less emphasis is laid upon this exercise due to which other aspects of the Performance Appraisal, Training Need Analysis, Employee’s   Career Growth goes awry.

Now let’s understand a few things before going ahead with the idea. Points to ponder upon:-

• ·         Goals are being set for the Appraise to achieve and set by the Appraiser to supervise.
• ·         These Goals are being set in the context of the Business and Vision of the Organization.
• ·         These Goals are being set as a scale to measure the performance of the Appraise in a given period of time.

The above points give clarity to the purpose of the exercise and this will in turn bring seriousness towards the exercise from the stakeholders. They are – the Appraise, the Appraiser and the Organization. 

Oraganization

• ·         The Organization is the major stakeholder in this exercise as these Goals are set in the context and limitations of the Organization to reach its Vision.
• ·         The policies, procedures and the culture of the Organization should boast and facilitate the other stakeholders to achieve their goals.

Appraiser

• ·         Appraiser should ensure that the appraise has totally settled and understood his/her job profile and what is expected from him/her in case of a new employee.
• ·         Appraiser should be well aware of the competency level of the appraise. WAIT – let’s consider a case¹ over here. Suppose a manager has to set goals for two of his subordinates with similar skills and job profile with differing competency level.  If the Manager sets goals of different levels with due consideration of their competency level then would it not be injustice?

Appraise

• ·         Appraise should have well imbibed the culture, business and mindset of the Organization along with his job profile and properly aligned it with his/her personal goals.

Now, before going ahead with the steps of Goal Setting let’s consider few points that really contribute to the success of this exercise.

• ·         They should be realistic and attainable.
• ·         They should improve the organization (morale, monetary, etc.).
• ·         All the people should be involved in the goal-setting process.
• ·         A program should be developed to achieve each goal.

There are further fivecharacteristics of goal setting:

• ·         Goal Difficulty: Increasing your employees' goal difficulty increases their challenges and enhances the amount of effort expended to achieve them. The more difficult goals lead to increased performance if they seem feasible. If they seem too high, employees will give up when they fail to achieve them.
• ·         Goal Specificity: When given specific goals, employees tend to perform higher. Telling them to do their best or giving no guidance increases ambiguity about what is expected. Employees need a set goal or model in order to display the correct behavior.
• ·         Feedback: Providing feedback enhances the effects of goal setting. Performance feedback keeps their behavior directed on the right target and encourages them to work harder to achieve the goal.
• ·         Participation in Goal Setting: Employees who participate in the process, generally set higher goals than if the goals were set for them. It also affects their belief that the goals are obtainable and increases their motivation to achieve them.
• ·         I would like to define a goal as follows: "A written statement that clearly describes certain actions or tasks with a measurable end result." To elaborate on this definition, a goal must be written. If it is not written, it is merely an idea with no power, conviction or motivation behind it. It will lack energy and purpose. A written goal will allow you to remind yourself and others exactly what has to be done. Rereading this written goal on a regular basis will help provide the motivation to achieve the goal.

We will discuss the Goal Setting steps and Methodologies in the next post. In the mean time I would like the reader to come up with the solution to the case¹ discussed above.