MGAD40H3 Lecture : Chapter 11 Notes
20 Apr 2011
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Chapter 11 aligning performance goals and incentives. Successful strategy implementation requires communicating strategic choices to hundreds or thousands of employees. Each employee requires guidance about how they can contribute, and performance goals provide that guidance. A goal is a formal aspiration that defines purpose or expected levels of achievement. Goals specify the ends that managers wish to achieve, and the means by which to achieve them. They incorporate measurement standards and time frames against which to gauge progress and success. Goals and objectives can be made actionable only when measurement is attached to any set of aspirations. Performance goal denotes a desired level of accomplishment against which actual results can be measured. Without the clarity of performance goals, employees may choose very different ways of generating financial returns. Performance goals and measures allow systematic and clear communication of what managers need to focus on.
