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Set goals that won’t lead employees astray Logo cgma

  Sabine Vollmer |   Free |   AICPA and CIMA |   18 Oct 2016 |   CGMA Magazine

This article discusses tools that managers should consider to ensure performance goals are appropriate and to detect bad behaviour as the goals are implemented.

Topics covered:
  • Management accounting: Leadership: Driving performance, Intermediate

3 Comments/Reflections

Thozama Tshisa

Thozama Tshisa Apr 2020

The setting of targets and their respective rewards requires serious consideration, setting "Too High" targets might result in an unintended consequences where:
1. Demotivated staff who wont even try to achieve these as they considers them to be unreasonable
2. Staff might try unethical ways in order to achieve such targets
3. Even business may suffer reputational damage by engaging in activities that compromise customer service in an effort to generate high revenues or profits

The way to resolve this is to find a perfect balance between quantitative and qualitative aspects to set the target on, also engaging the people on the floor to ensure that they have a buy in on these set targets.

As i develop personally and climbing the corporate, holding position where i need to set goals for my team and department, i will ensure that financial/quantitative aspects will not be the only focus point but the qualitative are considered using performance analytics like scorecard will assist in achieving such balance. 
Gary Hobden

Gary Hobden Dec 2018

Very interesting article, Something for me to take on board when setting objectives is look outside the box for unintended results when setting targets
Victoria Tolfts

Victoria Tolfts Jan 2018

A overview of goals/ targets that could be used particularly in a clothes shop food for thought on what/how it can be used in other industries