WHAT ARE ALL THE ADVANTAGES & DISADVANTAGES IN SETTING A PERFORMANCE TARGET?

SHARING MY PROFESSIONAL EXPERTISE OF WHAT HAD BEEN LEARNT FROM MY CAREER MANUFACTURING OF ABOUT "SETTING A PERFORMANCE TARGET - ITS ADVANTAGES & DISADVANTAGES", WHICH IS A SMALL SCRIPT THAT HOW A COMPANY'S BUSINESS HAVE TO GO FOR IT.

Setting performance targets for business may not always increases the company’s bottom line. Indicators of company's success can be useful tools in assigned operations and management. Having goals helps ensure that management and staff are working for a common result. As advantageous as performance targets can be, there can be disadvantages to establishing them if not implemented properly.

DEFINITION

Business performance targets also called indicators are goals for specific areas of a company. It can be written in general terms such as increasing client base or on a more specific level; such as making more sales calls per day. Meeting important targets gives an indication of company’s current success and future growth. Company’s goals should be measurable so that it can be achieved a quantitative analysis of company’s progress.

ADVANTAGES

Identifying the vital indicators of a company’s success will help to establish accurate performance targets. For example: the number of customers that the company have may not be as important as the total revenue sales generate. Measuring company’s success through achievable goals is an aid in analyzing areas where the business excels and where it can be improved. If the company only rely on numbers or figures that represent total sales, revenue or profits; may not know where the company can do a better job and how it will make a growth on business operation.

DISADVANTAGES

Setting performance targets can be a disadvantage to the company, if the company do not follow up on their progress. So the company must assess, if the indicators are met by employees, company-wide and in comparison with competitors. Review the goals to determine, if this should be adjusted based on factors such as the economy, new product releases from others in the industry or any reason that impacts on ability to meet company’s targets. In addition to that if chose to measure targets that are not as important as the company originally thought, it must be replaced with essential indicators that offer an accurate representation of company’s activities.

PROCESS

Determine what the company want to measure before embarking on the task of setting performance targets. Focusing on a section or department of one’s business can be more manageable. However if decide to enlist the entire operation, ask each department manager to write performance targets for that assigned work group and combine the indicators to narrow down the most important for the business. Once these have been established, explain the goals to employees, how it will be affected and the role of each one in meeting the targets.

SUNDARAMURTHY VELMURUGAN – linkedin.com/in/sundaramurthy velmurugan 299586110 LEATHER PROFESSIONAL CONSULTANT from a2z Leather Professional Consultancy, PONDICHERRY

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