Nirma Etp Goal Setting


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Nirma Etp Goal Setting

  1. 1. Goal Setting in Entrepreneurship Introduction: Any human activity, economic or social, is purposive. Rational behavior induces man to define and redefine ‘ purposive’ action into focused goals. Every individual, group, organization (business or social), government, or even a leader has a pre-set goal. Goals provide a future orientation, making all pre-set activities more consistent. Individuals/organizations without goals function for the present, merely reacting to pressures and actions. Reactions to these actions are impulsive as planned and organized approach is non-existent in the absence of specific goals. Goal is set by systemic methodology and planning which smoothens working, thereby leading to a meaningful achievement and result-oriented existence.
  2. 2. <ul><li>Categories Goals: </li></ul><ul><li>The goals of every individual/organization may vary </li></ul><ul><li>according to the specific needs and situations. </li></ul><ul><li>The categories that have identified are as follows: </li></ul><ul><ul><ul><li>Target oriented: </li></ul></ul></ul><ul><ul><ul><li>At times an individual/organization is bound by </li></ul></ul></ul><ul><ul><ul><li>established targets that have been set in advance. </li></ul></ul></ul><ul><ul><ul><li>The ultimate objective is to reach the target despite the </li></ul></ul></ul><ul><li> constraints and a specified time frame. The process </li></ul><ul><li> through which the goal is not as important as the goal. </li></ul><ul><li> Results are often gauged in quantitative rather than real </li></ul><ul><li> terms, and the qualitative aspects are ignored. </li></ul><ul><ul><ul><li>Achievement oriented: </li></ul></ul></ul><ul><ul><ul><li>In this category, value and effectiveness of goals are </li></ul></ul></ul><ul><ul><ul><li>weighed, in the true sense, in real terms. The qualitative </li></ul></ul></ul><ul><ul><ul><li>aspects and achievement orientation are ranked higher </li></ul></ul></ul><ul><ul><ul><li>than any other requisites such as sales turnover or </li></ul></ul></ul><ul><ul><ul><li>employee welfare. As a goal setter, one is bound to be </li></ul></ul></ul>
  3. 3. <ul><li> sensitive to the result which goal would lead to in the </li></ul><ul><li> future. The strategy devised to achieve the goal is as </li></ul><ul><li> important as the outcome. Goal effectiveness is not </li></ul><ul><li> evaluated merely in terms of numbers and the </li></ul><ul><li> performance is given a very high weightage. </li></ul><ul><ul><ul><li>Specific goals: </li></ul></ul></ul><ul><ul><ul><li>Specific goals are very important to any individual </li></ul></ul></ul><ul><li> /organization. It is important to note that specific goals </li></ul><ul><li> are the pivot around which work process revolves </li></ul><ul><li> knowledge of specific objectives. Loose open end goals </li></ul><ul><li> only leads to achieving intermediate results. Every </li></ul><ul><li> individual /organization must have a primary objective </li></ul><ul><li> which it should adhere to and this operational goal must </li></ul><ul><li> take precedence over other goals. </li></ul><ul><ul><ul><li>Overall goals: </li></ul></ul></ul><ul><ul><ul><li>Overall goals are broad-based. An organization may </li></ul></ul></ul><ul><ul><ul><li>have ‘strengthening’ (carving a niche for itself) as its </li></ul></ul></ul><ul><ul><ul><li>overall objective. All working together contribute to it. </li></ul></ul></ul>
  4. 4. <ul><ul><ul><li>Secondary goals: </li></ul></ul></ul><ul><ul><ul><li>Secondary goals take a back seat to specific goals. </li></ul></ul></ul><ul><ul><ul><li>But they must not be lost sight of the rush to meet the </li></ul></ul></ul><ul><ul><ul><li>primary goal. In the long run, secondary goals become </li></ul></ul></ul><ul><ul><ul><li>very important since the degree of effectiveness of the </li></ul></ul></ul><ul><ul><ul><li>primary goals rest on their fulfillment. </li></ul></ul></ul><ul><ul><ul><li>Long range/short range goals: </li></ul></ul></ul><ul><ul><ul><li>It will be well worth the effort to keep in mind that an </li></ul></ul></ul><ul><ul><ul><li>individual/organization works as much for the future as </li></ul></ul></ul><ul><ul><ul><li>for the present. Each goal, however, has a time dimension </li></ul></ul></ul><ul><ul><ul><li>involved. Short range objectives have a sharper deadlines </li></ul></ul></ul><ul><li> and are much more planned as their result can be seen in </li></ul><ul><li> the near future. On the other hand, long range goals </li></ul><ul><li> require perspective planning and a foresight. </li></ul><ul><ul><ul><li>Personal/Social goals: </li></ul></ul></ul><ul><ul><ul><li>These can be either complementary or substitutes or both. </li></ul></ul></ul><ul><ul><ul><li>For best results, it is necessary that both personal and </li></ul></ul></ul><ul><ul><ul><li>social goals be in harmony. </li></ul></ul></ul>
  5. 5. A performance sensitive organization must always strive to set goals which should be a balanced blend of various categories mentioned above. Once the appropriate mix is identified the task of goal stating and setting becomes easier. Goal Stating and Setting: Goal setting is the achievement of targets and objectives for successful performance, both long run and short run. It helps to measure how well individuals and groups are meeting the performance standards. The goal setting process requires three steps: 1. Definition of Goal 2. Specific goals 3. Feedback about goal achieved Definition of goal: It requires that a leader explains the purpose and necessity of the specific goals to his team members. Whatever the situation, people need goals that are meaningful to them in order to be highly motivated and involved.
  6. 6. Specific goals: Goals must be as specific as possible so that employees can feel a sense of achievement when the goal is attained. Goals must lead to tangible results. Feedback about goal achieved: One should always strive to get a feedback about how far he is on his way to reaching the goals. Feedback leads to better performance. Clarity regarding process smoothens the actual statement of goals. A goal has not only to be largely meaningful but also should be a challenge to achieve motive. Goal clarity is of great consequence to any individual as it defines the focus of a goal. Once the type of goal statement (goal stating) by which one should benefit is determined, the next step is to recognize the various aspects of goal setting . All aspects stated below have to be considered beforehand.
  7. 7. <ul><li>Aspects of Goal Setting: </li></ul><ul><li>a) Goal clarity: </li></ul><ul><li> Clear and simple objectives will bring expected results. </li></ul><ul><li> Misinterpretation and confusion will not allow to achieve </li></ul><ul><li> the set goals. </li></ul><ul><li>Clearly defined goal: </li></ul><ul><ul><ul><ul><li>I want to do __________ </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The organization will make effort to ________ </li></ul></ul></ul></ul><ul><ul><ul><ul><li>We will work on __________ </li></ul></ul></ul></ul><ul><ul><ul><ul><li>These are likely to bear positive results. </li></ul></ul></ul></ul><ul><li>Unclear and ill defined goals: </li></ul><ul><ul><ul><ul><li>I will do either this or ____________ </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Will only lead to confused and uncertain outcome. </li></ul></ul></ul></ul><ul><li>b) Reformulation of goals: </li></ul><ul><li> Any discrepancy occur in initial formulation will lead </li></ul><ul><li> to change the formulation. Goal setting should be </li></ul><ul><li> dynamic. Situation may change which would mean a </li></ul><ul><li> change in the strategy and perhaps even the goals. </li></ul>
  8. 8. Therefore, constant re-examination of goals is always beneficial. c) Restating goals: Defining or redefining goals results in analytical thinking, the outcome of which could be restating the goal, thereby making it more approachable and practical. The new goal might serve the organization/individual purpose far better. The emerging strategy will also thus be more clear, making the goal more relevant and achievable. d) Plan of action: Chalk out a detailed strategy in advance to achieve the goals after thorough discussion and debate and there- after assign responsibilities and duties, identify and arrange for resources. e) Defining the standards of performance and measurement criteria: This should effectively be able to rate success failure and must be reliable to provide necessary feedback.
  9. 9. <ul><li>f) Recognizing risks and obstacles: </li></ul><ul><li> Give a fair amount of thought to possible stumbling </li></ul><ul><li> blocks on the route to attaining the goals. While doing so, </li></ul><ul><li> do not forget to calculate the associated risks. </li></ul><ul><li>g) Goal reaffirmation: </li></ul><ul><li> It is also important to note that periodical review of the </li></ul><ul><li> goal is must since </li></ul><ul><li>i) With the passage of time the set goal might become </li></ul><ul><li> redundant; </li></ul><ul><li>ii) Organization may have side tracked the original </li></ul><ul><li> goal. </li></ul><ul><li>iii) More time than necessary might be making its </li></ul><ul><li> purpose ineffective. </li></ul><ul><li>h) Goal attainment: </li></ul><ul><li> The questions to ask are: </li></ul><ul><ul><ul><ul><ul><li>Have I attained the goals? </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Is there a need to modify the goals? </li></ul></ul></ul></ul></ul><ul><li>Then, compare the expected results with the goals. </li></ul>
  10. 10. You have to be a Visionary: Goals are not independent of the goal setter. Therefore, one should know: a) Who sets the goals? b) According to him/her what is the purpose of the goal? c) What is the need of the goal? d) How to set and achieve the goal? Goal results can be viewed as “deferred payment”. One has to be visionary, with an ability to make the unknown known. Visionaries have mental acuteness, their dreams and visions of future are realistic, their desire at times translates into needs, and the needs into necessities. Necessities warrant corresponding definite action. Action, therefore, becomes goal oriented. Their vision is a by-product of profound understanding of the environment. Such visionaries equipped with the power of imagination are able to translate the abstract into concrete results.
  11. 11. <ul><li>Attributes of a Visionary: </li></ul><ul><li>A visionary approach </li></ul><ul><li>A visionary </li></ul><ul><ul><ul><li>develops compelling vision of future. </li></ul></ul></ul><ul><ul><ul><li>translates the vision into reality by concentrating on the </li></ul></ul></ul><ul><ul><ul><li>processes of success. </li></ul></ul></ul><ul><ul><ul><li>remains deeply involved at the heart of things, aspiring </li></ul></ul></ul><ul><ul><ul><li>the actions necessary to carry out the vision. </li></ul></ul></ul><ul><ul><ul><li>constantly articulates the vision so that it permeates all </li></ul></ul></ul><ul><ul><ul><li>the concerned people . </li></ul></ul></ul><ul><ul><ul><li>searches for ideas, concepts and ways of thinking until </li></ul></ul></ul><ul><ul><ul><li>clear vision crystallizes. </li></ul></ul></ul><ul><ul><ul><li>concentrates on major strengths which will insure </li></ul></ul></ul><ul><ul><ul><li>success of the vision. </li></ul></ul></ul><ul><ul><ul><li>looks at ways to improve, augment or further develop </li></ul></ul></ul><ul><ul><ul><li>the vision by carefully observing changes in the </li></ul></ul></ul><ul><ul><ul><li>environment. </li></ul></ul></ul>
  12. 12. <ul><li>A visionary </li></ul><ul><ul><ul><li>adopts formal approach </li></ul></ul></ul><ul><ul><ul><li>solves day to day problems </li></ul></ul></ul><ul><ul><ul><li>takes decisions on policy basis </li></ul></ul></ul><ul><ul><ul><li>keeps aloof, rational and critical </li></ul></ul></ul><ul><ul><ul><li>shows interest in weaknesses of others </li></ul></ul></ul><ul><ul><ul><li>concentrates on current activities </li></ul></ul></ul><ul><ul><ul><li>“ As a goal setter one needs to possess other behavior </li></ul></ul></ul><ul><ul><ul><li>competencies too. One should be capable of taking calculated </li></ul></ul></ul><ul><ul><ul><li>risk and stretch the capabilities. These personal traits should </li></ul></ul></ul><ul><ul><ul><li>be imbibed by affiliate groups/organization as well.” </li></ul></ul></ul>