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A manager just asked Babu to approve a new performance goal: "Be better at sales." Babu immediately stops him! Goals that are vague lead to failure. Babu must teach him the SMART method for clear, measurable goals. (THE RULE: The SMART Method) Babu explains that every effective goal must be S.M.A.R.T. The goal must be specific, measurable, achievable, relevant, and time-bound. Without all five components, the goal is just a wish. (STEP 1: Specific and Measurable) Babu shows the manager how to fix the goal. Instead of "Be better at sales," the goal becomes: "Increase sales revenue by 10%." This is Specific (what exactly to do) and Measurable (we can count the 10%). (STEP 2: Achievable and Relevant) The goal must be Achievable (realistic and within the employee’s control) and Relevant (does it support the company’s mission?). If 10% growth is impossible in the current market, it's not achievable. (STEP 3: Time-Bound) Finally, the goal must be Time-Bound. Babu sets a deadline: "Increase sales revenue by 10% by the end of the second quarter." The deadline creates urgency and accountability. (SHRM FOCUS: The Exam Scenario) A critical exam scenario: A manager rejects an employee's performance review, stating the employee failed a key goal. The employee argues the goal was too vague. The SHRM correct action is to side with the employee! If a goal is not Measurable or Achievable (it fails the SMART test), the company cannot legally hold the employee accountable for failure. (SUMMARY OF LEARNING) In summary, HR ensures fair performance management using the SMART method: 1. Specific, 2. Measurable, 3. Achievable, 4. Relevant, and 5. Time-Bound. Vague goals are useless and legally risky! #SHRM #SHRMCP #PerformanceManagement #SMARTGoals #GoalSetting #LDRetention #HRStrategy #shrmcertification