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Target Agreement Example

Target Agreements: Empowering Employees for Success

Unleashing Employee Potential with Clear Performance Objectives

In the realm of performance management, target agreements hold a prominent position. They serve as a cornerstone of Management by Objectives (MbO), a principle that empowers employees by setting clear and quantifiable goals.

Defining Target Agreements

A target agreement is a formal understanding between a manager and an employee that outlines specific performance expectations. These expectations are typically expressed in terms of measurable and achievable objectives.

Role in Employee Motivation and Development

Target agreements play a crucial role in employee motivation and development. By providing employees with a clear understanding of what is expected of them, they create a roadmap for success. This clarity helps employees stay focused, prioritize their work, and take ownership of their performance.

Example of a Target Agreement

To illustrate, consider the following target agreement:

  • "By the end of June 2023, the employee will increase sales revenue by 15%."

This target is specific, measurable, achievable, relevant, and time-bound, meeting the criteria of a well-crafted performance objective.

Unilateral Determination of Targets

It is important to note that while target agreements are negotiated between managers and employees, the targets themselves are ultimately determined unilaterally by managers. This ensures that performance expectations are aligned with the organization's overall goals.

Practice and Role-Playing

To enhance understanding and foster effective implementation of target agreements, it is beneficial to engage in role-playing exercises. These exercises provide opportunities for managers to practice communicating expectations clearly and for employees to express their concerns or seek clarification.

Conclusion

Target agreements are essential tools for empowering employees, driving performance, and fostering professional growth. By establishing clear performance objectives and providing employees with the necessary support, organizations can unlock their potential and achieve their strategic goals.


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