necessity for enterprises to design their objectives to maximize the outcomes correctly

necessity for enterprises to design their objectives to maximize the outcomes correctly

In responding to the established questions and objectives, the rest of the study covered the review of the literature, methodology, results, discussion, and conclusion and recommendations. Collectively, these sections are vital in addressing some of the aspects that aided in the completion of the exercise. The literature review section provided a detailed overview of the available literature on the topic, thus creating the background for further studies. The methodology part detailed the procedure that the researcher utilized in undertaking the work. The results section reported the outcomes of the survey, while the discussion part gave an in-depth analysis of the findings. Finally, the conclusion and recommendation section provided final thoughts and what ought to be done to make similar future works better.

Literature Review

Importance of Objective-setting

The art of goal-setting is a characteristic practice that is widely shared by successful enterprises across every sector throughout the world. Williams (2001) defines this process as the expected results of an action that is expected to be accomplished at some specified time in the future, and to which all the resources and effort are channelled to realizing the vision (Williams 2001). This definition underscores the need for the utilization of a conceptual framework as a tool for setting goals and providing a reliable and logical platform on which work can be planned and evaluated. Organizational outcomes are categorized into either short or long-term. Therefore, objectives are usually developed to meet organizations’ short-term and long-term aspirations. In most cases, it is believed that an entity may take 3-12 months to realize its short-term objectives, and at least five years to accomplish its long-term goals (Williams 2001). This projected timeline underlines the necessity for enterprises to design their objectives to maximize the outcomes correctly.

Contrary to the popular narrative, objective-setting is not limited to the achievement of only financial targets. Instead, the process entails the realization of many other critical things that contribute to the general welfare of the organization (Williams 2001). For instance, a company wants to have its employee engagement higher to remain committed to realizing a competitive advantage. Therefore, the entity may set objectives that seek to motivate its workforce. Overall, the process of objective-setting enables an organization to identify and define the things that it intends to achieve in the short and long-term basis.

Objective-setting would have a positive contribution to employee effectiveness; nonetheless, managers would often wonder why people do not perform as expected. As noted by Ogbeiwi (2017), the primary reason may be that workers do not understand what is exactly wanted to be undertaken to improve organizational productivity. This argument implies the difficulties that many employees face when they do not have goals to guide them. Communicating to workers on what is expected of them in terms of results and performance through objective-setting is significant in motivating them (Ogbeiwi 2017). Critical to achieving effective communication is the articulation of the goals intended to be achieved. Clarification of expectations and the roles as well as the responsibilities of workers through clear communication and feedback can enhance manager and employee efficiency (Ogbeiwi 2017). In other words, when people see the link between their goals and the more significant objectives of the organization, they are more likely to have a greater impact on the overall organizational productivity.

The philosophy of objective-setting

The concept of objective-setting encompasses the specific destination of service delivery. The achievement of goals is the basic anticipation of every human activity (Aghera, Emery & Santen 2018). Because of this reality, individuals that do not work with specific agendas to achieve lack of critical direction for their effort or destination for their journey (Aghera et al. 2018). In this regard, objectives and objective-setting are the essences of all entities and their programs.

Informing the process of setting objectives is dissatisfaction with the current state of affairs and the desire to change to become better in the future. As competition for limited resources continues to grow stiffer each passing day, organizations are faced with the need to continuously adopt new strategies to gain competitive advantage (Locke & Latham, 2006). Viewed from this purview, the key philosophical reasoning behind objective-setting is its power to drive the behaviours and efforts of employees towards achieving “the desired change. Locke and Latham (2006) argue that “So long as a person is committed to the goal, has the requisite ability to attain it, and does not have conflicting goals, there is a positive, linear relationship between goal difficulty and task performance” (p. 265). This argument suggests that the desired goal effect only takes place when objective-setting process is formulated to b specific and challenging, and where the necessary moderating factors are in place in the practical context of the organization.

The ability to drive workforce productivity is also central to the objective-setting philosophy. This process motivates higher task performance by inspiring cognitive transformation in employees and management towards obtaining the relevant or appropriate behaviours, required for directing and energizing the functions of the organization (Aghera et al. 2018). Indeed, all enterprises need something to drive people’s attention towards realizing the established aspiration. Therefore, organizations depend on the process of objective-setting to motivate employees to improve their productivity.

The Idea of SMART Objectives

The concept of SMART has become a central component in writing more effective objectives. According to Ogbeiwi (2017), setting goals as SMART is the gold yardstick because it provides a clear direction for action planning and execution. The SMART framework was initially established by George Doran in 1981 as the criteria that every objective should fulfil. Over time, many organizations have utilized this model to guide their process of formulating goals for different intervention levels (Ogbeiwi 2017). This increased usage highlights the importance that enterprises have attached to this model.

The five elements that comprise the SMART acronym emphasize the specific issue that every objective should contain to ensure it advances an organization’s agenda. The S-component emphasizes the significance of making an objective specific, thus clearly defining what the employees are going to undertake (Ogbeiwi 2017). Indeed, making a goal-specific is critical in offering workers with a precise roadmap in achieving the established vision. The M-element stands for measurability (Ogbeiwi 2017). In other words, this principle calls for the need of making objectives measurable such that there is tangible evidence to demonstrate accomplishment of the goal. The third element, A-denotes the attainability of the targets (Max & Bacal 2011). In effect, this aspect emphasizes the necessity of making goals highly achievable to the point that they stretch the employees to feel challenged towards realizing the established mission. The R-and T-components stand for realism and time-bound (Max & Bacal 2011). In essence, objectives ought to e practical and seek to be accomplished within a specific period.

Importance of Smart Goals in Improving Employee Performance

As the concept of objective-setting continues to become popular in organizational set-ups, many scholars have attempted to understand the underpinning factors for this paradigm shift. Consequently, several benefits have been attributed to this process, especially in improving employee productivity. This concept is considered critical in clarifying the employees’ end vision. Without a proper vision and objectives, individuals will wander around, thus failing to obtain the required mission within the specified period (Caldwell 2002). In this sense, the concept of smart objectives eliminates the possibility of having ambiguous and indefinite goals, which will most lead to wastage of both capital and time. Through smart objectives, all employees have an incentive to know what they are precisely required to accomplish within specific times (Caldwell 2002). Overall, this observation suggests that this process clarifies people’s end vision by offering them a clear roadmap concerning their day-to-day responsibilities.

The ability to let employees focused and move forward has also been cited as one of the prospective advantages of smart objectives. The process of objective-setting enables people to pay attention to the appropriate activities, hence preventing them from getting distracted with unnecessary undertakings (Locke & Latham 2013). Undoubtedly, it is highly difficult for workers to realize the established aspirations if they do not have something them keeps them focused. For example, the proliferation of the usage of new technologies in work set-ups may be significant destruction to the employees if they are no clear guidelines on what they are required to undertake at given periods. Setting up long-term goals can help to drive workers forward wherever they feel less motivated (Locke & Latham 2013). Therefore, the capability to confine individuals towards the attainment of the set goals underlines the significance of smart objectives.

Smart objectives are also lauded for their capability to instil discipline in employees. The process of objective-setting injects a sense of self-discipline among employees, enabling them to achieve established aspirations (Choon & Patrick 2016). Typically, undisciplined individuals are less likely to realize their vision or organizational goals because of wasting lots of time and resources in useless activities. Nonetheless, with smart objectives, they have something that reminds them of what should be given priority at specific timelines (Choon & Patrick 2016). Indeed, knowing preferences is a prospective way of achieving the established goals. As the number of tasks continues to increase among organizations due to the growing cases of dynamism in the global environment, it is essential to focus on those that require urgent respond for competitive advantage (Choon & Patrick 2016). In sum, smart objectives help workers to grow beyond their limits and become stronger and reliable for the attainment of organizational aspirations.

Additionally, the idea of smart objectives has received much attention among scholars because of its potential impact on employee creativity. Setting up smart objectives makes it more innovative by enabling employees to adopt new strategies to accomplish their tasks within reasonable periods (Medlin & Green Jr 2009). As the need for competitive advantage continues to become critical in contemporary entities, there is no doubt that the art of creativity can make this aspect a reality. For this reason, the adoption of the smart objective concept is an ideal approach for organizations that seek to spur their employees towards enhanced productivity.

Furthermore, the concept of smart objectives has gained cognition in the corridors of human resource management because of its perceived role in imparting a sense of ownership among employees. The purpose of smart objectives is to assist workers in improving and securing their buy-in in the accomplishing of the earmarked activities within the identified period (Medlin & Green Jr 2009). Because of this potential, it is essential for managers to jointly establish goals that are SMART to inspire commitment and allow individuals to develop a sense of ownership in achieving the organizational vision. Inherent to instilling this effect is the tendency of smart objectives to stretch goals and to push employee performance (Medlin & Green Jr 2009). Overall, this type of objectives enables workers to feel that they are central to the process of achieving an entity’s overall goals.

It is also believed that smart objectives are a great way of increasing employee accountability and better performances. About 90% of companies with effective performance management systems are those whose employee goals are linked to business priorities (Aghera et al. 2018). This observation implies workers will be more likely to be effective if they can see how individual goals fit into their big pictures. The most suitable approach to achieving this milestone is through the establishment of smart objectives. In addition to motivating employees to remain committed to organizational goals, these type of objectives encourages accountability and better performance as people grasp the direct impact of their performance (Aghera et al. 2018). In other words, smart objectives instil an environment in which everyone is ready to take responsibility in the attainment of the bigger picture.

Limitations of Smart Objectives

While smart objectives are seen as critical tools in achieving enhanced employee performance, some scholars have outlined some limitations. In other words, some mistakes or factors may make smart objectives unable to realize the intended purpose. Setting up unrealistic goals is one of the mistakes by organizations is one of the things that dent the potential of these objectives. When establishing goals, entities are required to unleash their imagination and ambition while making the objectives of realizing the end product feasible (Daudkhane 2017). Therefore, the direct impact of not adhering to this provision is the likelihood of failure. For example, if the ambition of a company is to become global within the next month, but it does not have the required resources, this goal may not be practical. For this reason, smart objectives may fail to yield the anticipated outcomes if they are not kept as ideal as possible.

Smart objectives may also become infective if they are designed to focus on a few areas. Some organizations make a mistake by exclusively focusing on things that can generate in revenue generation without reflecting on aspects that bring joy to their employees (Daudkhane 2017). In effect, the success of smart objectives is dependent on the ability to strike a balance between different aspects of the organization. While considering this issue, it is important to note that the priorities for every organization are different. Therefore, firms need to consider balancing various aspects while creating smart objectives.

The efficacy of smart objectives can also be dented by setting several goals. As the pressure for competitive advantage to continue to pile in the contemporary world, entities may be tempted to set goals for several aspects (Latham & Locke 2006). Though this approach is well-intentioned, it may deter success because of lack of vision. Focusing on multiple objectives at the same time makes it significantly difficult to provide individual goals with the attention they deserve (Latham & Locke 2006). This possibility delineates the importance of using the principle of quality and quantity when setting objectives. Notably, firms ought to work out the relative significance of everything that they ought to accomplish over the next few months and in the long-term (Latham & Locke 2006). Through this approach, it is more likely that organizations can be able to select the specific objectives that need immediate focus on those that require more time to be accomplished. Therefore, any failure to observe these criteria can deny entities an opportunity to benefit from the concept of smart objectives.

Summary

The reviewed literature portrays the process of objective-setting as a critical aspect of attaining organizational success. This discourse has gained popularity among entities because of the perceived impact it has on attaining the earmarked vision. The literature confirms that this importance has resulted in the establishment of smart objectives. This concept has become central in enabling organizations to develop more effective goals that they need to achieve in both the short and long-term basis. The five elements that encompass this framework are believed to be vital in enabling organizations to boost the performance of their employees.

The ability to make workers focused on their responsibilities is one of the perceived significance of designing smart objectives. At the same time, these objectives have been associated with motivating employees and improving their sense of belonging. Collectively, the impacts are a big impetus in driving individuals to remain committed to attaining the organizational vision. Additionally, smart objectives are attributed to the ability to instil discipline and creativity among workers. In this sense, the reviewed literature suggests that this practice provides a conducive environment upon which individuals are motivated to adopt appropriate behaviours that enable them to contribute to the organization positively. Furthermore, smart objectives promote a sense of accountability and improved performance. While the reviewed literature sheds valuable insights into the concept of smart objectives, there is a dearth of empirical studies to confirm the inherent observations. Therefore, the present study seeks to bridge this gap by undertaking a scientific investigation into the correlation between smart objectives and employee performance.