Agreements on objectives

The agreement on objectives is an agreement concerning the goals to be achieved by the employee. It is a motivational technique and 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 agreement on objectives is an agreement concerning the goals to be achieved by the employee. It is a motivational technique and 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. An Agreement on objectives is an instrument of leadership, that goes back to the teaching of Management by objectives. Management by objectives in this context means the keeping of employees by objectives. The company's philosophy gives the impetus for the formulation of strategic objectives, which in turn are translating the employee goals into operational goals. The objectives of the top level of the hierarchy are the longer-term orientation and aligning goals of a company. The lower the targets are located in the hierarchy, the more short-term and specific they are. To note here is that each target species based on the overriding objective must be to ensure the company acts as a purposeful whole. Target agreements are an instrument of modern personnel management, in the form of a performance-based, variable compensation classified as an ongoing fee. An agreement between employers and employee, where periodic objectives, related to the individual employee, are agreed with the compensation depending on the degree of goal attainment. Economically, the arrangements are agreed on a target, up to a certain point in time, to be performed, which in practice are usually taken in the context of appraisal interviews. Target agreements are agreed between two parties, however, targets are determined unilaterally by the employer as part of its management rights. Both commission and agreement on objectives contain a variable performance pay, which will be paid in addition to a fixed salary. As an individual performance-related compensation from the commission ruled, however, for employees who do not or are not used primarily in sales, or in which any case is not primarily a revenue-or profit-related performance, are provided. If the employer takes a target, from whose achievement is only the commission paid, it's a question of an agreement on objectives. With the agreement of a bonus, employees are involved with a certain percentage share of the economic success of the company. It is a success fee, which is independent of the contribution of the employee's to the company's success. In contrast, target agreements must set the goals to be reached and influenced by the employee for his assistance. Still occurs at the end of the fiscal year to assess the performance of the employee will be decided by which, whether the objectives have been met or not. If it is solely on the sales performance of the company, which is not much influenced by the employee, it is a bonus. Basically, to be brought into line with agreed targets, the individual goals of employees with corporate goals, thereby increasing efficiency of the company takes place. Agreements on objectives can orient themselves to the performance of the individual employee or a group (individual objective) and the success of the company (corporate goals). The employer can observe the implementation of continuous feedback in the target agreement process, continuing to the performance level of the individual worker and influence through ongoing training. It is therefore the appraisal of an employee, which is also of enormous importance in the area of staff development. Agreements on objectives allow the company to continue flexible working and provide an additional incentive compensation for the extra performance of the employee. The employee is given the opportunity, however, to earn an additional payment, for example in the form of an annual premium.