Setting goals is a fundamental strategy companies use to steer employees in the direction of the company vision and objectives, as well as to measure success. A basic idea behind setting goals is that the goals should be small -- in other words, managers should provide multiple goal levels or benchmarks. Doing this is advantageous for a business in multiple ways.
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Evaluation and Assessment
Having multiple goal levels for employees means that you have more opportunities to measure what the employees have done. This makes it easier to determine whether the employees are staying on task and to remedy problems you find within their work. Multiple goal levels also mean that you can assess whether it is worthwhile to continue on toward the next planned goal or to modify your plans toward a different goal given the results you've seen the employees produce.
When you have multiple goal levels for employees, you can identify what has been accomplished and what employees still must finish with high frequency. When you evaluate and assess the employees more frequently and are able to remind them of the next step, this gives the impression of progression or forward movement in operations or a specific project. This keeps the employees from feeling stagnant and getting discouraged.
Any goal a company has communicates something to the employees about the business's objectives and visions. The more goal levels are present, the more opportunity there is for the company to confirm for employees what those objectives and visions are. On the other side of the coin, employees have more chances to discuss the underlying principles fueling managerial decisions. This increased communication may help reduce or eliminate conflicts.