GOALS AND GOAL-SETTING

1. Goals vs. Objectives

(Lesson 6)

People often use the words Goal and Objective interchangeably. The two words are often confused with each other. Some writers often mix them up as well. It is very important to understand the two words, especially, when you are drafting a business plan, or preparing a corporate strategy. Goal and Objective describe things that a person may want to achieve or attain, but in relative terms they mean different things. Both the terms imply the target that one's efforts is desired to accomplish. They are desired outcomes of work done by a person but what sets them apart is the time frame, attributes they are set for, and the effect they can produce. A goal is a brief, clear statement of an outcome to be reached within a certain timeframe. It is a broad, general, tangible, and descriptive statement. It does not say how to do something, but rather what the results will look like. It must be achievable. It is a stretch from where we are now. Above all, it is singular. Goals can be described or defined as Outcome statements that define what an organization is trying to accomplish. A goal is where you want to be and objectives are the steps taken to reach the goal. For example, the government of Malaysia has set the goal of becoming a fully developed nation by the year 2020. It is also a vision. Another possible example Legenda College has the goal of becoming a full-fledged university in the near future.

Goals are broader than Objectives in the sense that goals are general intentions and are not specific enough to be measured. Objectives are narrow and are set for certain tasks in particular. Goals may be intangible while Objectives may be tangible. Goals may be directed at achieving non measurable things while objectives may be targeted at getting measurable things or tasks. While both have a certain time frame, goals usually have a longer time frame than objectives. Objectives are usually precise targets set for a short term. Goals may be set for a longer term but many objectives may be set within that goal for specific purposes aimed at achieving that goal.

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You might set the goal of becoming the leading retailer of Product ABC in Malaysia. This is a broad statement, which you may or may not be able to appreciate. Consequently, an objective would be: to sell 10,000 Product ABC in Year One, 25,000 in Year Two and 40,000 in Year Three. This objective is a narrow statement. Larger goals often help to define specific objectives. In contrast to goals, an objective is a specific, measurable, actionable, realistic, and time-bound condition that must be attained in order to accomplish a particular goal. Objectives define the actions that must be taken within a year or so in order to reach a strategic goal.

2.

What is Goal-Setting?

Aristotle speculated that purpose can cause action. For goals to increase performance, one must define them as difficult to achieve and as specific as possible. Easily-attained goals tend to correlate with lower performance than more difficult goals. A vague goal does not seem likely to enhance performance. A goal can become more specific through quantification or enumeration (specifying a certain number or a list), such as by demanding "increasing productivity by 50%"; or by defining certain tasks that need completing. Goals can affect performance in three ways: 1. Goals narrow attention and direct efforts to goal-relevant activities, and away from perceived undesirable and goal-irrelevant actions 2. Goals can lead to more effort; for example, if one typically produces 4 widgets an hour, and has the goal of producing 6, one may work more intensely than one would otherwise in order to reach the goal 3. Goals influence persistence. One becomes more prone to work through setbacks or to work harder if pursuing a goal. Various moderators can affect the relationship between goals and performance: Goal-commitment, the most influential moderator, becomes especially important when dealing with difficult or complex goals. If people lack commitment to goals, they will lack motivation to reach them. In order to become committed to a goal, one must believe in its importance or significance. Attainability: individuals must also believe that they can attain or at least partially reach a defined goal. If they think no chance exists of reaching a goal, they may not even try. Self-efficacy: the higher someones self-efficacy regarding a certain task, the more likely they will set higher goals, and the more persistence they will show in achieving them.

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The enhancement of performance through goals requires feedback. Goal-setting may have little effect if individuals cannot check where the state of their performance is in relation to their goal. Goal-setting theory has its limitations. In an organization, a goal of a manager may not align with the goals of the organization as a whole. In such cases, the goals of an individual may come into direct conflict with the employing organization. Without aligning goals between the organization and the individual, performance may suffer. Moreover, for complex tasks, goal-setting may impair performance. In these situations, an individual may become preoccupied with meeting the goals, rather than performing tasks. Goal Setting involves establishing specific, measurable and time targeted objectives. Work on the theory of goal-setting suggests that it's an effective tool for making progress by ensuring that participants in a group with a common goal are clearly aware of what is expected from them if an objective is to be achieved. On a personal level, setting goals is a process that allows people to specify their work towards their own objectives - most commonly with financial or career-based goals. Goal setting is a major component of personal development. The business technique of management by objectives uses the principle of goal setting. In business, goal setting has the advantages of encouraging participants to put in substantial effort; and, because every member has defined expectations set upon him or her (high role perception), little room is left for inadequate effort going unnoticed. To be most effective goals should be tangible, specific, realistic, and have a time targeted for completion. There must be realistic plans to achieve the intended goal. For example, setting a goal to go to Mars on a shoe string budget is not a realistic goal, while setting a goal to go to Hawaii as a tourist is a possible goal with possible, realistic plans. Goal setting also requires motivation. Simply setting a target may lead to progress in the desired direction, but understanding why the target is desired encourages personal investment into the achievement of the goal. If you want to get to your goals quickly you have got to clarify on why you want it. What does it mean to you? Why do you need it in your life? And the stronger and more important the why - the more power you will have to pursue that goal.

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Goals provide a sense of direction and purpose. Locke et al. (1981) examined the behavioral effects of goal-setting, concluding that 90% of laboratory and field studies involving specific and challenging goals led to higher performance than easy or no goals. While some managers would believe it is sufficient to urge employees to do their best, Locke and Latham have a clear contradicting view on this. The authors state that people who are told to do their best will not do so. A goal is thereby of vital importance because it facilitates an individual in focusing their efforts in a specified direction. In order to increase motivation the employees not only need to be allowed to participate in the goal setting process but the goals have to be challenging as well. Managers can not be constantly able to drive motivation and keep track of an employees work on a continuous basis. People will perform better when they are committed to achieve certain goals. Goal commitment is dependent of: The importance of the expected outcomes of goal attainment and; Self-efficacy - one's belief that they are able to achieve the goals; Commitment to others - promises or engagements to others can strongly improve commitment The more employees are motivated, the more they are stimulated and interested in accepting goals. -------- END ---------

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