Question

List the steps in the formal goal-setting process. What are some of the advantages for companies that use this approach? What are some of the problems that may arise from use of this approach (Chapter 6) Basic Elements of Planning and Decision Making

Answer 1

answer-

the list of steps in the formal goal setting process are-

-starting the formal goal setting program is the first step.

- establish the organization's goals and plans in this program in second stage.

- Make sure that goal set by organization are collaborating with planning in third stage.

- Now communicate these goals and plans of organization to employees or parties responsible for achieving those goals.this can be done by doing meetings with employees , by counsellnig etc.

- Do periodic review of goals and plans in the program

- in the last do Evaluation of the program to know the effectiveness of goal setting program. it means goals are achieved or not.

the some of the advantages which companies can get from this approach are-

Goals set and approved by employees and management set a clear direction and focus of all while without goals all companies will be like lost one in dessert. so there would be no clear direction for companies where to go without set goals.

When organization is able to set goals for its employees which all agrees on then it helps to increase performance of employees because they are motivated by those goals and show their best efforts to achieve those set goals.

Setting goals and planning helps companies to identify their priority like what they want first to achieve and second and third ..... etc. for example- a company set goals to increase its sale 5% in next month or two, then company wants to open new franchise or business in few years to grow business etc.

the other advantages like companies get skilled and high performing employees, more productivity, systematic work culture etc.

the some of the problems which may arise with this approach are-

increase work pressure-

when goals are set then employees sometimes in excitement agree to them but in reality if they are not able to achieve then it increase their work pressure and increase chances of job dis satisfaction.

some times this approach makes you focus on result not progress like management make goal of achieving 5% of sales and employees achieve it but next time they make more like 15% which they are not able to achieve so it does not show their progress that they are improving but focus on result that they did not achieve which can create demotivation and frustration in employees of companies.