Why are goals and objectives so important to performance management?
One reason why many performance management systems fail badly is that they rely on poorly defined, or even non-existent goals and objectives for employees. Clear goals and objectives for employees serve two major purposes:
First, they help the employee understand what is expected of him or her. They help tell employees what parts of their jobs are most important and less important. Having clear goals helps employees self-correct and make their own decisions on a day-to-day basis, which means less work for managers. So, in short, they guide employee behavior.
Second, clear goals and objectives make the employee performance review meetings go much more smoothly. While no goals and objectives can completely remove subjectivity from appraisals, they help reduce subjectivity by supplying some criteria for employee success. When these criteria are clear and manager and employee understand them in the same way, they tend to reduce arguments in the performance appraisal process.