Performance Management | Defining Objectives and performance standards

1. DEFINING OBJECTIVES AND PERFORMANCE
STANDARDS
CHAPTER 4 –

2. OBJECTIVES AND STANDARDS
Objectives
• Finite
• Time-related
• Specific to team or person
Standards
• Ongoing
• Are generic

3. OBJECTIVES
 Objectives define what organizations, functions, departments and individuals are expected to achieve
over a period of time.
 Can be expressed as
i. Targets
ii. Tasks (or projects)
 Can be work-related or personal.
 Can be short-term: to be achieved by a specified date
 Can be long-term: (continuing objectives)

4. OBJECTIVES
Quantifiable results to
be attained.
e.g. Return on capital
employed, output, sales,
levels of service delivery,
a cost reduction, etc.
Target
Units of work to be
completed by specified
dates to achieve defined
results.
e.g. Building a House,
Developing a website,
etc.
Tasks (or
Projects)

5. INTEGRATION OF OBJECTIVES
 The aim of integration is to ensure as far as possible that everything that people do at all levels in the
organization will support the achievement of corporate goals.
 The integration of organizational, individual and team objectives is often referred to as a process of
cascading objectives. It is a bottom-up process.
 Provides channel for upward communication
 Integration ensures that individual’s are aware of functional and corporate goals, and that they
contribute to it.

7. CHARACTERISTICS OF GOOD OBJECTIVES
1. Consistent: with the values of the organization and departmental and organizational objectives.
2. Precise: clear and well-defined, using positive words.
3. Challenging: to stimulate high standards of performance and to encourage progress.
4. Measurable: they can be related to quantified or qualitative performance measures.
5. Achievable: within the capabilities of the individual.
6. Agreed: by the manager and the individual concerned.
7. Time-related: achievable within a defined timescale
8. Focused on teamwork: an effective member of a team as well as making individual achievement.

8. DEFINING INDIVIDUAL OBJECTIVES
 Set specific targets for key result areas.
 Relate individual or team objectives to corporate or functional objectives.
 Achieve commitment by discussion rather than telling them what to do.

9. PERFORMANCE STANDARDS
 Performance Standard: a statement of the conditions that exist when a job is being performed
effectively.
 Takes the form of a statement that performance will be up to standard if a desirable, specified and
observable result happens.
 Can be quantitative or qualitative.
 Performance standards more attached to objectives usually in junior or routine jobs.
 Performance standards less attached to senior or flexible jobs.

10. THE END