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TOPIC 5 Goals and Objectives

The document discusses the distinction between goals and objectives, emphasizing that goals are broad outcome statements while objectives are specific, measurable actions that support those goals. It highlights the importance of Management by Objectives (MBO) and the Balanced Scorecard as systems for aligning organizational objectives with performance measures. Additionally, it addresses the integration of goals and objectives in employee performance evaluations and corporate social responsibility efforts.

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3 views

TOPIC 5 Goals and Objectives

The document discusses the distinction between goals and objectives, emphasizing that goals are broad outcome statements while objectives are specific, measurable actions that support those goals. It highlights the importance of Management by Objectives (MBO) and the Balanced Scorecard as systems for aligning organizational objectives with performance measures. Additionally, it addresses the integration of goals and objectives in employee performance evaluations and corporate social responsibility efforts.

Uploaded by

2231894
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Goals

and
Objectives
Prepared by:
Mina Joy O. Tangonan
The nature of goals and objectives
According to Frost (2000), Goals and
objectives provide the foundation for
measurement. Goals are outcome
statements that define what an
organization is trying to accomplish, both
programmatically and organizationally.
Goals are usually a collection of related
programs, a reflection of major actions of
the organization, and provide rallying
points for managers.

In contrast to goals, objectives are very


precise, time-based, measurable actions
that support the completion of a goal.
Management by Objectives to the Balanced
Scorecard
Drucker introduced management by
objectives (MBO) in the late 1950s.
Kaplan and Norton introduced the
Balanced Scorecard in the early
1990s. Both the Management by
objectives and the Balanced
Scorecard are management systems
that align tangible objectives with an
organization’s vision.

In MBO model both management


and employees work together to
create a set of objectives to work
towards. Allowing employees to
have a say in setting objectives
makes them take ownership of the
process.
Management by objectives to the Balanced
Scorecard
The name “balanced scorecard”
comes from the idea of looking at
strategic measures in addition to
traditional financial measures to
get a more “balanced” view of
performance. The concept of
balanced scorecard has evolved
beyond the simple use of
perspectives and it is now a
holistic system for managing
strategy. It is now a data driven
strategic approach to measure the
four primary functions of any
business; learning and growth,
business processes, customers,
and finance.
Taken from Nguyen, (2023)
Characteristics of Effective Goals and
Objectives
According to Brown, M. G. (1996), there are eight (8) Characteristics of Appropriate
Goals and Objectives:
1. Fewer are better. Concentrate on measuring the vital few key
variables rather than the trivial many.

2. Measures should be linked to the factors needed for success —


key business drivers.

3. Measures should be a mix of past, present, and future to ensure the


organization is concerned with all three perspectives.

4. Measures should be based around the needs of customers,


shareholders, and other key stakeholders.

5. Measures should start at the top and flow down to all levels of employees in the organization.

6. Multiple indices can be combined into a single index to give a better overall assessment of performance.

7. Measures should be changed or at least adjusted as the environment and your strategy changes.

8. Measures need to have targets or objectives established that are based on research rather than arbitrary
numbers (Brown, 1996).
Using goals and objectives in employee performance
evaluation
Goals and objectives are essential
components of employee performance
evaluation. They provide a framework for
assessing employee performance and guiding
professional development.

A performance evaluation is a constructive


process to acknowledge an employee’s
performance. Goals and objectives are a
critical component of effective performance
evaluations, so we need to cover the
relationship among them briefly in this
section.

A research suggests that individual and


organizational performance increase 16%
when an evaluation system based on specific
goals and objectives is implemented (Rynes,
et. al., 2002).
Using goals and objectives in employee performance
evaluation
Integrating Goals and Objectives with Corporate Social
Responsibility
Corporate social responsibility
is a business model by which
companies make a concerted
effort to operate in ways that
enhance rather than degrade
society and the environment.

Corporate social responsibility


can help improve society and
promote a positive brand
image for companies. It
includes four categories:
environmental impacts, ethical
responsibility, philanthropic
endeavors, and financial
responsibilities.
Integrating Goals and Objectives with Corporate Social
Responsibility
Corporate social responsibility requires more
holistic strategic thinking and a wider stakeholder
perspective. Because the goals and objective tools
like the Balanced Scorecard is a recognized and
established, it is well positioned to support a
knowledge-building effort to help organizations make
their CSR values and visions a reality. The Balanced
Scorecard enables individuals to make daily
decisions based upon values and metrics that can be
designed to support these long-term benefits.

Corporate social responsibility reporting


measures an organization’s economic, social, and
environmental performance and impacts. From this
data, a company can check if they have achieved
their goals and objectives. On the other way around,
goals and objectives can dictate what CSR a
company would like to implement or support
Your Personal Balanced Scorecard
The Balanced Scorecard, championed by Kaplan and Norton, can be translated into
your own individual scorecard, one that helps you achieve your personal and
professional goals and objectives.

Recall that the scorecard for an


organization starts with vision
and mission, followed by goals
(financial, internal business
processes, customer, and
learning and growth), which
have corresponding objectives,
metrics, and tactical activities.
When these components are
applied to you as an individual,
you might see the pieces of the
scorecard labeled as shown in
the following figure.
Your Personal Balanced Scorecard
For personal objectives and performance measures to be most effective, you might
try seeing how they measure up to SMART criteria. These characteristics, based on
specific, measurable, attainable, realistic, and time bound yield the acronym SMART
(Drucker, 1954).
Your Personal Balanced Scorecard: Example
References:
https://open.lib.umn.edu/principlesmanagement/chapter/6-3-the-nature-of-goals-and-objectives

https://asana.com/resources/goal-vs-objective

https://open.lib.umn.edu/principlesmanagement/chapter/6-6-using-goals-and-objectives-in-employee-
performance-evaluation/

https://open.lib.umn.edu/principlesmanagement/chapter/6-8-your-personal-balanced-scorecard/

https://issuu.com/redhousemarketing/docs/wtm-february-2023

https://www.fossilconsulting.com/blog/qualifications-and-training/setting-smart-training-goals/

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