The Goal Setting Process and Performance Management belong among the most difficult business processes. The discussion should not be about the performance management, but about the right goals set to employees. Many companies fail in the goal setting process.
The goal setting process is difficult as right goals need to be set to employees and the management has to be able to monitor the progress of employees during the year and to conduct proper performance evaluation at the end of the period.
Theoretically, each company knows how to set correct and ambitious goals to employees, but still motivating them to reach the target. In reality, the management is worried to set ambitious goals and many times, the goals are reached by the end of September and the rest of the year is a nice extra for employees to improve their bonuses even further.
The goal setting process needs a true leader as the CEO of the company to make sure, the employees trust the vision of the organization and are ready to follow the leader in the effort to build even bigger organization beating the competition on the market.
The setting of goals is not the only issue, the monitoring of the progress with the immediate feedback is also essential. In many companies, the employees need to wait for several months to hear the real results affecting their bonuses and appraisals. The monitoring system has to be developed to provide immediate feedback to employees helping them to change their behavior to get the company on the right track again.
