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Performance goals are used to
A. communicate nonverbally.
B. measure effectiveness, but not efficiency.
C. determine a worker’s attitude.
D. measure productivity.
Performance goals are used to measure productivity.
Performance goals are used to measure productivity. They are used to motivate employees and to evaluate employee productivity. The most common performance goals are:
- To increase sales
- To improve customer satisfaction
- To reduce costs
- To improve quality or efficiency
But how do you set performance goals? And what should you consider when setting them? Here are some tips:
When setting performance goals, it is important to keep the following in mind:
- The goal should be specific, measurable, achievable, relevant, and time-bound (SMART)
- The goal should be aligned with the company’s strategy
- The goal should be challenging but achievable
- The goal should be linked to other goals (for example, if the company’s goal is to increase sales by 20%, then an individual’s goal could be to increase sales by 20% in their territory)
- The goal should be linked to rewards and recognition (for example, if an employee meets their performance goal, they may receive a bonus or commission)
Here are some examples of performance goals:
- Increase sales by 20%
- Improve customer satisfaction scores by 30%
- Reduce costs by $100,000 per year
- Improve quality or efficiency by 25%
When setting performance goals, it is important that you involve employees in the process. Employees should be given the opportunity to provide input on what goals they think are realistic and achievable.
Additionally, employees should be given the opportunity to provide feedback on how well they are meeting their goals. Feedback should be given on a regular basis, and employees should be held accountable for meeting their performance goals.
What are some tips you have for setting performance goals? Share your thoughts in the comments!