Performance Management System

Ans.1) An aim is a declaration of an end outcome occupied in a certain period of time

at a certain level of quality. It is a well-defined target that give us clarity, direction,
motivation, and focus. Aims are prearranged and relate future outcomes to which
present efforts are aimed.

In organizational context, Goals are those ends that an organization seeks to achieve
by it existence and operation.

Goals and Plans:

Goals should not be grand or complex. They need only be statements of results we
hope to achieve. These are a desired future state that the organization attempts to
realize while, Plans are a blueprint specifying the resources allocation, schedules, and
other actions necessary for attaining goals. A plan defines how a goal will be
achieved. It provides the structure needed to accomplish daily organizational activities
and outlines the necessary activities, the resources to be allocated, and how the work
will be assigned.

There are various steps of planning and aims in an organization. Aims at every step
helps the company.

Types of Goals in Organisation:

The various types of goals in an organization are as follows:

 Strategic Goals: Broad statements of how the organization should be and where
the organization wants to be in future, pertaining the goals as a whole rather than
to specific divisions or departments. Strategic goals are like:
 Explain the steps the company wants to achieve.
 The blueprint that defines activities

 Tactical Goals: Goals that describe the outcomes that major divisions and
departments must achieve for the organization to achieves its overall goals.
Tactical goals are like:
 Specific part of the company’s strategy
 Plans of the divisions and departments

 Operational Goals: Certain, comparable outcomes intended from departments,

work mass, and individuals. Operational goals are like:
 Lower levels of the organization
 Specific action steps
SMART goals setting brings structure into our goals and objectives. In stead of vague
resolutions, SMART goal setting promotes verifiable trajectories towards a certain
objective, with clear milestones and an estimation of the goal’s attainability. When the
goals are to be set, a useful phrase to recall is S.M.A.R.T. Goals should explain
achievements , not tasks.

The S.M.A.R.T. phrase explains a specific terminology to create significant goals.

The S.M.A.R.T. Acronym

S = Specific

M = Measurable

A = Achievable

R = Relevant

T = Time-bound

S.M.A.R.T. Goals

Specific: It explains the ‘wh’ family such as Who, What, When, Where, Which, and
Why. The more specific a goal is, the more we can find ways of reaching out target. A
certain goal will make it simpler for those writing goals and action strategy to mark
the mentioned questions:

 Who is to be involved?
 What is to be accomplished?
 Where will this happen?
 When will this happen?

Measurable: Know that a goal without a measurable outcomes is like a sports

competition without a scoreboard. How will we and our staff member know when the
goal has been successfully met? Focus on elements such as observable actions,
quantity, quality, etc. A comparable aim will answer queries like:

 How much?
 How many?
 How will I know when it is accomplished?
 What is at the finish line?

Achievable: Is the goal achievable with the achievable with the available resources?
Is the goal achievable within the time originally outlined? Based on the present
restrictions such as our schedule, workload, and knowledge, do we believe we can
attain the objective we set? If not, then set a different goal, one that is attainable for us
in the present.

 Are we prepared to make the commitment to reach our target?

 Are we willing to dramatically alter or at least Tweak aspects our life?

Relevant: Aims are supposed to be influential to the task of the department. Is

reaching our goal relevant to us? Do we actually want to run a multinational, be
famous, have three children and a busy job? We decide for ourself whether we have
the personality for it, or our team has the bandwidth.

Time-bound: Goals should find a confirmed target date for fulfilment and/or
recurrence for certain steps that are key for realizing the goal. Setting a deadline
reinforces and motivates us to take action. By setting a time-line, we can avoid
internal pressure and complete our goal within that time frame.

 How frequently a staff member is supposed to work on this assignment?

 By when should this goal be accomplished?

Functional capabilities are particular to a determined department or kind of job. These

describes the knowledge, skill, and/or abilities (KSA) required to fulfil required job
tasks, duties or responsibilities. Setting goals promotes employee motivation and
should support to the employee KSA which ultimately leads to functional
competencies.

The best SMART goals gives guidance to the employees and keep them updated in a
changing competitive time. Thus employees focused on their performance throughout
the evaluation period.

The two kinds of objectives included into goals written to compare achievement in
functional competencies:

 Process Objectives: It explains what a “good” - not exceptional - employee is

expected to do and how he or she is expected to do it. This describe participants,
interactions, and their activities.
 Outcome Objectives: These are more complex to evaluate because various
elements may influence what is being measured. Yet, the assessment can be used
to describe external components dominates a result.

SMART goal is a goal-setting plan that groups can use to develop an actionable
marketing plan to keep the company's long-term purposes, combining sales and
consumer engagement plans. Practical SMART goals can aid our teams in clarifying
their purposes. Search out locations that needs renovation and create an successful
advertising campaign. SMART goals in marketing can escalate overall revenues and
upgrade client alliances. It is important to assess the ways to use the plan in marketing
to find out if it's right for our demands. We can market the recently introduced two-
wheeler electric mobility scooter with effective advertising campaign, Public
Speaking, and with Mass marketing.

Ans.2) The balanced scorecard for performance measurement is in reality a mixture

of financial and non-financial measures that ultimately leads effective assessment of
organizational performance. A combination of the balanced scorecard metrics also
provides the opportunity to the organization to compare and benchmark products ans
services against the competitors.

The balanced scorecard is a planned management method developed by Kaplan and

Norton (1992). IT clearly prescribes what a company should measure to balance its
financial perspectives. In reality, the balanced scorecard can be referred to as a
management system alternatively than only a measurement way to keep a track of
degree of balance in the financial results of an organization.

With this balanced scorecards, companies can find their POVs and plans, rendering
those into action strategy. In the process of rendering the actions into the balanced
scorecard, companies can create the planned framework and get the performance
goals. And the scorecard can also set the way to get the performance aims. Kaplan and
Norton explained that the balanced scorecard during keeping the traditional financial
scales, can also help the organization to scale the ability to develop future value,
considering for the handouts in 4 perspectives, i.e., customers, finance, internal
business process, and learning and growth.

A stabilized score is a multi-dimensional structure designed to make an organization

think about every aspect of its work and make action to improve it. A properly
developed balanced scorecard acts not only as a means of measuring organizational
performance, bur also as a way of clarifying objectives and managing the critical
success factors that impact upon their delivery.

Four Kinds of Measures:

The scorecard searches to compare a business from the mentioned POVs:

 The Learning and Growth Perspective: Kaplan and Norton influence its need
in every organization. They think about learning to be more necessary than
training. Learning , needs in-house guides and teachers, free flow of transmission,
and employees can reach their superiors in the time of any problem while doing
their jobs. Through learning, employees can grow and self-improve.
Development is a more universal term as compared to development. As
development is short, growth is permanent. With growth, an employee can get
 one-time performance results, however with learning strengthen growth
employees can frequently deliver better performance results every time. In this
perspective we can simply say that, if “Forever Young” expanding then we are
having more global opportunities, we interact cross culture platform,
globalization so we can learn South Asian culture and their norms, by this way
we’ll adapt the new culture and tradition which leads to increase in oral profits.
 Business Process Perspective: Kaplan and Norton, two supporters of the
balanced scorecard, tells employees' fulfilment focus on inside business
processes. Knowledge of inside business process perspective allows employees to
realize the way that the company is done by the organization, the limit of
accordance of products and services to customers' requirements, the task of the
company, the steps of planned management, etc. When “Forever Young”
expanding the organization need to hire more resources from the local and train
them according to the need or situation. If we have already working employees
from same country then they have upper-hand in terms of the freshers. We can
give them training about these 4 perspective so that this will help in expanding
the organization.
 The Customer Perspective: When companies are customer centred and are able
to give the customers what they needs, then success can be realized at much more
easily. No company can survive with unsatisfied clients. Efforts from all
sampling of employees add to customers' content. In other words, every
employee adds helps value to the customers, disregards of their character of
work. A discontent customer moves to other suppliers and their discontent also
effects the other potential customers of the company. This concludes in the failure
of the business. So, for all these reasons, labour must work to reach the level of
the customers' demand and make the satisfy customers. Thus, to measure
employees' performance from customers' perspective, it is essential for the
organization to develop various metrics analyzing the customers’ data. As
“Forever Young” brand working in India so well, so we have to focus on good
point and have to apply same in South Asian branch as well so that we have
satisfied customer there as well and this will help us expanding overall business
in South Asia.
 The Financial Perspective: As it has already been mentioned, Kaplan and
Norton did not make the requirement for ,monetary outcomes dispensable.
Finance and also the monetary outcomes are supposed to continue to receive
companies’ priority. As a matter of fact, without scrapping the requirement to
pivot on money, they also included the requirement for future value addition
possibility of the companies. Some of the key financial standards like employees'
ability to find out the risk, ability to reason the cost benefit, etc. are the most
critical performance indicators for this perspective.Once more, like in other
POVs, every examples of employee must also work to reach the financial POVs.
Overall expansion of “Forever Young” will help us in financial stability, we’ll
have more financial or monetary benefits.
Conclusion:

Thus, balanced scorecard translates strategy into action. The idea takes the hints from
the companies vision and planning and then create main performance indicators in all
the four POVs. Each performance indicator is determined in terms of specific well-
designed standards against which the work of an employee is measured. To create a
balanced scorecard, organizations at the outset identify the vision, aligning their value
and philosophies. Then, through mission, organizations concertize this vision. Mission
clarifies the purpose of the organization. Goals are then set within the bounds of task,
which then falls to certain plans and action plans. Such certain action plans become
the key performance indicators (KPI), which then become the final performance aims
for the company. KPIs can be translated into measurable performance scorecards
including all the perspectives.

Financial: To succeed
financially, how
should we appear to
our shareholder?

Internal Business
Customer: To achieve VISION Process: To satisfy
our vision, how our shareholders and
should we appear to AND customers, what
our customer? business processes
STRATEGY must we excel at?

Learning And
Growth: To achieve
our vision, how will
we sustain our ability
to change and
improve?

Ans.3)a) SMART goals setting brings structure into our goals and objectives. In stead
of vague resolutions, SMART goal setting promotes verifiable trajectories towards a
certain objective, with clear milestones and an estimation of the goal’s attainability.
When the goals are to be set, a useful phrase to recall is S.M.A.R.T. Goals should
explain achievements , not tasks.

The S.M.A.R.T. phrase explains a specific terminology to create significant goals.

The S.M.A.R.T. Acronym

S = Specific

M = Measurable

A = Achievable

R = Relevant

T = Time-bound

S.M.A.R.T. Goals

Specific: It explains the ‘wh’ family such as Who, What, When, Where, Which, and
Why.

Measurable: Know that a goal without a measurable outcomes is like a sports

competition without a scoreboard.

Achievable: Is the goal achievable with the achievable with the available resources?

Relevant: Aims are supposed to be influential to the task of the department.

Time-bound: Goals should find a confirmed target date for fulfilment and/or
recurrence for certain steps that are key for realizing the goal.

SMART for Production Executive at a manufacturing company:

 Bug free environment - if product have bug then this won’t be cost effective.
 Work in such a way that first product should be best and final one for cost-
effective environment.
 We should check product at very first stage so we can save our transportation
expenses and packaging charges. If quality check is accurate then final product
will be best for customers.

b) Goals are part of every aspect of business/life and provide a sense of direction,
motivation, a transparent focus, and clarify importance. By setting goals, we’re
providing ourself with a target to aim for. A SMART goal is used to help advise goal
setting. Therefore, a SMART goal includes all of these standard to help focus our
efforts and grow the chances of attaining our goal.

SMART goals are:

 Specific: Well defined, clear, and unambiguous
 Measurable: With specific criteria that measure our progress toward the
accomplishment of the goal
 Achievable: Attainable and not impossible to achieve
 Realistic: Accessible, realistic, and relevant to our life purpose
 Timely: With a clearly explained time-line, consisting a starting date and a final
date. The aim is to design importance.

The following broad guidelines will help to set effective, achievable goals:

 State each goal as a +ive statement – Express our goals +ively – "Perform this
method well" is a much better goal than "Don't make this foolish mistake."

 Be precise – Set precise goals, fixing dates, times and amounts in order we can
measure achievement. If we do this, we’ll know exactly when we have achieved
the goal, and can take complete satisfaction from having achieved it.

 Set priorities – When we have several goals, give each a priority. This helps us to
avoid feeling overwhelmed by having too many goals, and helps to direct our
attention to the most important ones.

 Write goals down – This solidify them and provide them more force.

 Keep operational goals small – Keep the low-level goals that we're working
towards small and achievable. If a goal is too large, then it can seem that we are
not making progress towards it. Possessing goals small and accumulative
provides more chances for prize.

 Set performance goals, not outcome goals – We should take care to set goals
over which we have as much control as possible. It can be quite disappointing to
fail to attain a personal goal for cause beyond our control! In business, these
causes could be bad business envt.s or unpredicted effects of govt. policy. In
games, they could incorporate poor deciding, bad weather, wound, or just plain
bad luck. If we base our goals on personal performance, then we can keep control
over the achievement of our goals, and draw satisfaction from them.

 Set realistic goals – It's important to set goals that we can achieve. All kind of
people can establish irrational goals for us. They will often do this in ignorance of
our own desires and ambitions. It's also possible to set goals that are too difficult
because we might not appreciate either the obstacles in the way, or understand
quite how much skill we need to evolved to attain a specific level of execution.

SMART for Dispatch Executive at a logistics company:

 We need to check whether the product or items are upto rate and are as per the
client expectations.
 Delivery or shipping should be on time if product not shipped within the time
frame then this leads to dissatisfaction of customers. We should deliver the
product or items timely.