Goal management can be called a philosophy. Using this tool, it is possible to successfully implement strategic plans by focusing staff on achieving specific and measurable results. Management by goals allows you to develop the company's ability to predetermine its future, and not take action, depending on what is happening at the current time. It complements the traditional planning system with individual responsibility and material incentives. This philosophy combines several management functions. Among them: planning, assessment and motivation of employees, control.
Management by objectives implies a connection between the achievement of a result in the area of its responsibility and the amount of remuneration. This approach allows company employees to realize what the company needs to achieve, which means it allows them to more efficiently fulfill their tasks. Management by objectives provides more reliable feedback in the organization’s management system, creates an objective basis for control and material incentives for its participants. With this tool, you can more accurately plan your human resource requirements. The management method by goals helps to improve mutual understanding between management and subordinates. The second one, in addition, provides an opportunity to gain more authority, more often take the initiative.
This tool allows you to comprehensively achieve goals and solve the tasks of personnel management in the organization. Its essence is the development and implementation of a system that permeates all levels of the company. Its elements are goals and objectives (both of the entire organization as a whole, and of its individual employees). For this, the principles of decomposition and cascading are applied. Goals are first determined at the highest level, then they are divided and descended in the form of specific instructions below (units and specific employees). In this case, each employee in the process of dialogue should understand what the organization needs to achieve (and what is its task). Goals are developed according to the already well-known SMART principle.
The key elements of such a system are key performance indicators. Their purpose is to measure the effectiveness (efficiency) of employees, functions or processes according to the selected criteria. The optimal amount of KPI for an employee is considered 3-7 indicators. Priority is determined by their weight. They are visualized in the form of a SMART card. Its other name is the KPI card.
The result required from the employee’s activities is most often set at three levels (target, lower and upper). The specific amount of employee compensation depends on this. A map or part of its indicators is developed by the leader for his subordinates (immediate and functional). Human resources services provide administration of this process, the result of which is a bonus for achieving good KPI indicators. Cards are developed in two copies (one is issued to the employee, the second is kept by the head until the moment of summing up). It is worth noting that such a system allows you to effectively work out those goals and tasks of personnel management that are most significant.