Working Life > Employee Interview > Objective Agreement

Leading through Objective Agreements

Definition, Explanation

The objective-agreement gets more and more important in employer-employee-talks and in employees-assessment. It is an agreement concerning the goals to be achieved by the employee. This motivational technique is standardly used in field service and in project work, but also in other areas. Besides trade and industry, it is also increasingly used in public administration.

The defining of objectives depends on the goals of the company or the department and breaks them down to the single employee or the team. One has to assure that measurement criteria and measurement magnitudes are defined properly to allow a dispassionate evaluation of the employee.

The objective-agreement is normally part of the employment contract and the basis of variable incomes.

Tips, Checklist

• Defining and determining of objectives is normally done by the executive personnel. Mostly, it depends on the objectives that their bosses, before, have instructed as objectives of the department. They provide the framework for defining the single employee's objectives. Thus, the employee has only little influence on objective-definitions
• Make sure that objectives are fixed in written and that consequences of not-fulfílling or over-fulfilling are clearly mentioned. Cover the questions of Who, What, What for, When and How
• Objectives are to be defined in advance, not in retrospect
• Objectives should be encouraging and motivating, not over-challenging. Thus, realistic bjectives are important
• Talk to your boss about the objectives. Soberly state objections, apprehensions, obstacles and suggestions. Also demand support, e.g. the setting of better framework conditions
• Call attention to potential conflicting objectives. It often happens that two departments work for goals that actually make them work against each other, though sometimes this is explicitely wanted, to stimulate competition
• In the sales department, one has to take care also that selling responsibilities do not overlap so that not the same customers are appealed by several sellers
• It does not always make sense to define objectives for single employees. Also team goals, to be achieved together, are possible, which also supports the team spirit
• Objective-agreements require an open and honest communicating. Many employers find this repeatedly unpleasant, for they fear controversies with the employee. Employees, in turn, are afraid of the issue because they feel controlled and valued. Thus, the more concretely the fears are discussed, the better can objective agreements be institutionalized
• Remark it early when given objectives become unachievable through changes of frameworkconditions, and demand an adjustment of the objectives, before due date

Last update: 06/02/2010