Goal Setting for Managers

Any viable business unit has a host of things clamoring for attention. There are known problems yet to be solved;

problem areas yet to be identified; untapped opportunities to be maximized;

deviations within the unit from some accepted standards or norms; gaps between certain of its aims and actual accomplishments;

and accomplishments which often look good until compared with the potential for higher accomplishments.

We operate in a changing world where even if a unit could be proved free of all the above, its present successes and established

ways of doing things could be obsolete tomorrow. Goal setting is one management technique for focusing on these problems. It is a

form of planning. Setting goals requires the manager to think through and decide what should be done and then to develop strategies for seeing

that it is done. Following is a three-step guide for going about the business of setting goals.

Elena M. Volante is Director of Public Relations for McLean Hospital, the psychiatric division of Massachusetts

General Hospital. Prior to joining McLean in 1971, she worked for W. R. Grace & Co. for 15 years in various

industrial relations functions, and taught for several years at Boston University Graduate School of Nursing.

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STEP I

REVIEW YOUR RESPONSIBILITIES. Review your job responsibilities and the mission of the unit(s) you manage. There are four aspects to every manager’s position regardless of its level and the types of units managed. Think about what’s expected from you in the following four areas of responsibility: Responsibility for (1) the organizational design of your unit including the number and types of jobs in it, reporting relationships, delegated authorities for decision-making, spans of control, reporting and control systems, etc.; (2) effective collaboration with other organizational units whose work relates; (3) insuring your unit works toward the goals of the larger company unit of which it is a part and in accordance with company policies, practices, etc. Responsibility for getting the particular work of the unit you are managing-whether it be sales, research, manufacturing, engineering, or some combination (whatever your organizational unit is charged with doing)-done and done well. Accountable for directing, planning, setting standards for and controlling the actual work and work results. Responsibility for the fiscal and monetary aspects of your unit and its contribution to profits (directly, in line units and, indirectly, to staff units). Accountability for budget- ing, approval of expenses, control of inventories, overtime, and other activities that affect expenditure, conservation, or use of funds. Responsibility for manning your organization structure with qualified personnel; hiring, firing, discipline, comniunicating, motivating; recommending transfers, promotions, salary increases; maintaining morale; utilizing the time and talents of subordinates; and developing ready replacements for all key jobs in your unit.

ORGANIZATIONAL

TECHNICAL

FINANCIAL

PERSONNEL

Management of PersonneE Quarterly, W i n t e r , 1971 5

STEP I1

TECHNICAL

FINANCIAL

PERSONNEL

LOOK FOR PROBLEMS AND OPPORTUNITIES. After you have thought about what‘s ex- pected in the four areas identified under Step I, ask yourself how close you are to getting ideal results. What problems or obstacles are holding you back? What poten- tials could be investigated or maximized? Should you, for example: Change the basic .design of your organization structure. Add, abandon, or change any organizational functions or activities. Examine the levels at which decisions are authorized. Improve systems and reports used for management information and control purposes. Establish methods to improve downward flow of information on organizational matters. Work on obstacles for more effective collaboration between your unit and other units. Foresee future conditions which your organization must prepare itself to handle. Act upon any organizational problems which are impeding the ideal functioning of

Set higher standards for work output, e.g., sales quotas, manufacturing throughputs. Introduce efficiencies in work flow patterns and/or systems and procedures. Reduce frequencies of negative incidents, e.g., customer complaints, lost-time accidents. Change priorities, redirect work and time of subordinates. Identify new trends (in your field, the economy, etc.) which suggest change in the work

Identify the ten most important things your unit can accomplish next year. Review the majw cost components of your budget and your control systems for them. Make special analyses of experience under such systems to determine how well they

Analyze the biggest time and cost wasters in your organizations. Identify your biggest difficulties in budget formulation last year. Investigate what changes and innovations in systems, equipment, procedures, work

Plan methds for improving ready replacements for key positions including your own. Establish better ways of appraising the performance and potential of individuals in

ORGANIZATIONAL

your unit.

your unit is doing or how it is being done.

are actually working.

standards, etc., should be pursued for increased efficiency.

your organization.

track records on promotions, transfers, turnover, etc.

be done to put your organization in a better position tomorrow.

Establish new approaches for developing subordinates, improving morale, improving

Identify the biggest “people probIems” facing your organization today and what must

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STEP III

ESTABLISH GOALS. Having identified in Step I1 certain problems and opportunities, you are now resdg to draft goals to act upon them. Each goal has two parts: an objective to be reached and plans or strategy for reaching the objective. Following is a guide for going about drafting goals:

A. State a target or objective committing you to specific reszclts

Suppose, €or example, after Steps I and 11 you conclude your organization is not developing enough internal candidates for managerial positions. In other words, you identified a problem. Now you must translate this into an objective which will commit you to doing something to solve it, e.g.,

Objective: Establish at least three new mechanisms for improving my organi- zations ability to develop more internal candidates for promotion into mana- gerial positions.

Or suppose, after Steps I and 11, you’re not sure you have a problem but your basic organization structure hasn’t changed for years and you think looking into the matter may reveal possible changes or improvements. You can commit yourself 3s follows:

Objective: Study my present organization structure, and possible alternatives, and prepare a final report either justifying the status quo or recommending changes.

Always include a quantitative measurement or a definite end result like the “three mechanisms” or “final report.” Without these things you’re committed to produce you will have vague statements of intent with no measuring device built in to tell you at year end whether you made the target or not. Don’t hesitate to tackle long-range or big problems which can’t be resolved in one year by one goal. For example, an organization’s manpower development problems are unlikely to be solved by a goal like the first above. But establishing three new development mechanisms is a good start. New or carry-over goals can be set for subsequent years. Similarly, in the second example, one might study one’s organi- tion one year and implement necessary changes the next.

B. Next, develop your strategy for reaching the results called for in your objective

Most objectives have alternative ways of reaching it and involve solving sub- problems. List the specific things you’re going to do to reach your objective. Add target dates. For example, to reach the first sample objective, this might be the strategy : I . Establish a method for identifying higher performers annually 3/71 2. Require annual reports from their supervisors on special steps being

4/7 1 3. Create a new job as assistant to a key manager to which high performers

5/71 4. Establish one task force a year on some business problems where high

taken to develop their capabilities further

can continuously be rotated for temporary training assignments

performers, participating with seasoned managers, will have a managerial problem-solving experience 12/71

Management of Personnel Quarterly, Winter, 1971 7

EXAMPLES

EXAMPLES OF GOALS IN FINAL FORM. Following are examples of goals in final form for each of the four key areas of managerial responsibility. A well-rounded set of goals for a manager will include some for each area.

Objective : Study my present organization structure, and possible alternatives, and prepare a final report either justifying the status quo or recommending changes.

1. List the major responsibilities of each key manager (or unit) and decide

2. List authorities for major types of decisions and decide whether any should

3. Conduct a literature survey and consult with appropriate outside sources

4. Prepare final written report on conclusions reached

ORGANIZATIONAL

whether any should be shifted, enlarged, curtailed, etc.

be delegated to lower organizational levels

for ideas on alternative ways of structuring my organization

2/7 1

3/71

6/71 7/7 1

TECHNICAL

FINANCIAL

Objective: Institute a program at Plant X which will reduce production quality re- jects by 20%.

1. Request Quality Control Specialists to identify the greatest quality

2. Review And implement at least two recommendations this year 3. Draft plans for implementing other recommendations for the next year 4. Increase quality awareness in hourly personnel by

problem areas and their reconimended solutions 2/7 1 12/71 12/71

a. Having Plant Manager and Quality Control Specialists hold meeting with them on the economics and technical aspects of quality control

b. Instituting a Plant Program where different production units will compete on the basis of their quality records for some prize or privilege

4/7 1

6/71

Objective: Have at least three cost-reduction programs in effect which by year end will produce 10% savings in the subject area to which they are addressed.

1. Require each unit head reporting to me to set at least one cost-reduction goal which can be implemented within his unit during the year

2. Analyze cost-savings possibilities which will cut across all units and implement at least two of these broader cost-reduction programs

3. Require quarterly reports from appropriate subordinates

1/71

12/71 3, 6, 9, 12/71

PERSONNEL Objective: Establish at least three new mechanisms for improving my organization’s ability to develop more internal candidates for promotion into managerial positions.

1. Establish a method for identifying high performers annually 3/71 2. Require annual reports from their supervisors on special steps being

4/7 1 3. Create a new job as assistant to a key manager to which high performers

5/71 4. Establish one task force a year on some business problem where high

taken to develop their capabilities further

can continuously be rotated for temporary assignments

performers, participating with seasoned managers, will have a managerial problem-solving experience 12/71

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