Self-Management and Work Ethics in Financial Institutions
5.1 Understanding the nature of targets and how to identify them, whether at the level of individual or establishment in which he works
Learning Objective
1. To understand the nature of targets and how to identify them, whether at the level of individual or establishment in which he works.
5.1.1 Definition of Targets:
Targets are the outcomes intended from the program and plan. They are defined as outcomes or purposes pursued by the management. These outcomes must be designed and approved in ad- vance in the planning stage. Targets are the change intended to be made at the level of individual’s performance, direction and behavior, and the objectives that a FI wants to achieve within a specific period, where the FI identifies the expected achievements by departments, jobs, sections, teams and individuals. Targets are a key element in administration’s work, as they serve in two directions:
Direction 1: They are a basis for drawing up policies and plans.
Direction 2: They are a standard for follow-up and performance assessment.
The Senior Management is responsible for setting and adjusting targets. Management-by-targets is a modern method for FI management. It is based on definition of each employee’s targets, then compare FI’s targets with employees’ targets, and then direct their attention to targets that have been set to ensure the best performance by everyone. Management-by-targets includes continu- ous control of activities and feedback review.
5.1.2 Setting of Targets:
Setting targets is a key basis that constitutes a cornerstone for management. Setting targets achieves personal aspiration, harnesses the individual’s energy and serves his tendencies, measures the progress achieved with regard to planned results by using regulatory criteria for achieving tar- gets, and thus detecting failures, identifying the reasons for such failures, and working to correct them. It also guides human behavior, and measures his success and ability to employ his energies, because targets are like road signs that give the necessary impetus to reach them.
5.1.3 How to Set Targets:
In order to set targets, each department must discuss its targets in presence and participation of all employees, so that they have an effective role and remain aware of such targets. Then, the role of each employee must be discussed separately according to his/her job title. In this discussion, the employee’s targets and role in his department and in achieving its target are agreed. Moreover, the employee may communicate with his/her line manager to discuss or understand these targets.
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agreed. After that, joint examination is made for each area, targets and agreed performance stan- dards, to ensure that they are appropriate. An agreement may be reached on the implementation of any project that may be linked to specific responsibility or to larger and more general projects.
In addition, the employee must select a list of key responsibilities or functions that may relate to targets. Targets are quantified and time-bound, and always attain specific outcomes that can be measured along with its period of achievement, as targets may achieve a certain level of results, or improve performance in some way. Targets can be translated financially, such as profits, income, costs reduced, or the budgets within which the employee will work, or in many other ways, such as: A specified number of operating units, responses received, or customers contacted within a given period. Targets are expressed financially or by units, for example:
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Performance improvement targets can be expressed in ways such as:
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5.1.4 Setting Targets at the level of individual and establishment:
There are two main types of targets namely: Individual targets and establishment targets.
A Individual or Personal Targets:
Achieving profits of SAR 106 million by June 30.
Maintaining customer-contracting levels not exceeding SAR 12 million.
20% increase in profits over the last year.
Reducing additional expenses on the contractual rate from 22.6% to 20% during the next twelve months.
Personal targets relate to individuals’ work and improvement of performance (Performance Improvement Plans), or measuring their knowledge and skills, and their overall competence level (Continuing Professional Development (CDP) and Personal Development Planning (PDP)).
Employees’ personal targets stem from the department’s plan and targets, which, in turn, stem from FI plan and targets. Therefore, it is natural that the targets of the department and employ- ees be integrated within FI’s targets and plans, and then support and help achieve them.
Personal Development Plan (PDP)
SMART term means:
The Personal Development Plan is known as the process of developing a simple plan to develop specific skills or knowledge so that individuals can apply them professionally and consistently in their workplaces. However, a clarification of targets that are consistent with FI mission, public beliefs and values should precede any development plan.
PDP must address three key issues:
• What the employee is trying to achieve.
• Whether these achievements serve the employee’s professional growth.
• Whether they set specific procedures and steps (SMART).
Any plan should be targeted, its targets should follow SMART procedures and steps, and should be clear as to what this person wants to do or what he/she wants to be.
• S: Specific targets.
• M: Measurable and objectively assessable.
• A: Accessible and achievable.
• R: Realistic and contributes to career development or advancement.
• T: Time-bound and appropriate.
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B. Establishment Targets:
CBP Human Resource Program
CBP human resources program establishes the basics of Human Resources Management (HRM) by developing the required skills and strategies in HRM. The trainees develop and master the training skills sought in a successful person through realistic examples, exercises and practical scenarios in several training institutions, which develop basic professional skills that are vital for excellence in performance tasks in many positions.
Work targets are the outcomes achieved and contributions made to achieve targets of the team, division or department. At the level of the FI, targets are linked to FI’s mission, core values and strategic plans, and at the level of division or position, they are linked to depart- ment’s targets, the definition of tasks set, targets and purposes to be achieved by a position or division. At the level of the team, they are linked specifically to that team’s targets, and his expected contribution to achieve the division or department’s targets. At the individual’s level, targets are linked to job targets and indicate the key responsibilities and main activity areas or key functions based on which the individual’s job rests. Work targets focus on results that individuals are expected to achieve, and how they contribute to achieving targets of the team, division and department, as well as preserving FI’s financing values, targets, and core mission.
There are different classifications of targets that FI should pursue. Below are some of common targets:
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Reach and Expansion: Banks are seeking to compete in attracting the largest number of customers and expand locally and internationally.
Innovation and novation: FI must set new innovative standards for delivering its products and services in a better way, to achieve a positive customer experience.
Productivity: FI must set targets for measuring efficiency of using its available resources.
Financial and monetary resources: FI is interested in setting standards that help it utilize its financial and monetary resources in the best way.
Administrative Achievement and Development: It should be ascertained how the manager expects performance and how it can be measured across development standards and programs.
Profitability: Banks are seeking to set standards that measure investment return, which can be identified at many rates and measurements.
Employees’ achievements and tendencies: Specific performance levels must be defined to measure employees’ performance, and to identify their tendencies towards work and performance.
Public responsibility: Banks set some targets related to measuring their social role, effects of their activities and position on the society where they operate.
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