business communication, employee performance evaluation, hr best practices, Human Resources Training, Training & Development

Goal based performance management systems

Goal based performance management (GBPM), as the title indicates, is a system of measuring performance against set goals. GBPM is considered a concrete way of measuring and ensuring organizational success.

The idea of GBPM is to set goals as a means of measuring the organization’s or a unit of the organization over a period of time, usually half a year or one year. At the end of the period, an assessment is made of the performance vis-à-vis the goals set. Following this, an assessment is made of each individual’s role in helping achieve the goal, the extent to which goals were met, and the reasons for either not meeting or meeting goals.

GBPM is built on the belief that the ideal way for the individual’s and organization’ growth is to work together in setting and achieving goals that are aligned to the organization’s vision and priorities.

Setting goals is the most important task

Since everything in GBPM is about goals, setting them is at the heart of the concept. One has to set goals that are realistic and achievable. Setting fanciful goals, as happens normally in sales, and expecting employees to meet half of them, is not the ideal way for GBPM. GBPM is about setting goals that are related to the larger organizational targets and ambitions. Goals have to be set in the context of the existing and changing market conditions. Also, it is important that these goals do not keep shifting too often or by too much.

Employee strengths matter a lot

Also, GBPM has to take into account each employee’s capability for delivering goals.Holding someone accountable for something that is practically impossible to achieve is not the way to go. Similarly, setting goals that do not advance employee skills or capabilities can frustrate them and demotivate them. In difficult times, GBPM calls for drastic overhauling of roles and responsibilities. During such times, GBPM becomes more of survival of the fittest. GBPM is thus a way to ensure that the organization gets the best out of its employees and manages to stay afloat in times of difficulty.
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