What are "SMART" goals involved in goal setting? Why it is important to have "SMART" goals?

SMART goals are the goals that employees can realistically and consistently achieve. SMART stands for: Specific, Measurable, Attainable, Relevant and Timely.

Each plays an important part in the creation of one single goal and provides an individual with more direction and ability to achieve the goal/target in due date.

1. Set a goal that is SPECIFIC

Specific goals have a much better chance of being reached because they clearly define what is trying to be accomplished. When setting, include why the goal is important and how you intend to accomplish it.

2. Set a goal that is MEASURABLE

A measurable goal should include a plan with targets and milestones that you can use to make sure you are moving in the right direction. 

3. Set a goal that is ATTAINABLE

Goals should motivate, not discourage. People are motivated by accomplishment, so ensure that goals are achievable. An attainable goal should be realistic and include a plan that breaks your overall goal down into smaller, manageable action steps that use the time and resources available to you within the timeline you have set. 

4. Set a goal that is RELEVANT

A relevant goal should be related to work environment, service/product, customers, etc...

5. Set a goal that is TIMELY

A time-based goal is limited by a defined period of time and includes a specific timeline for each step of the process. 

SMART Demonstrates specific, measurable, achievable, results-focused, and time- bound. For HR Buisness Partner -Talent Retention Specific means % to retain employees, Measurable means Against target how much retained, Target is achievable or not (If target given by boss to  employee is to retain more than98%-It demonstrates not achievable)Result oriented- Retained as per specific target or not, Monthly,Quarterly or annually total no of employee retained

I agree with all expert's answers.

S.M.A.R.T. is an acronym for :specific, measurable, achievable, relevant, and time-based goals.  

It's  important when setting up your goals that your goals must be well defined, measurable, action based and within a specified time frame. Applying this method will make your goals more achievable and easy to track your progress or to spot any deviation. 

SMART objectives are defined based on your company's short term and long term objectives, i.e. more focus on long term objectives for senior management (and defined on yearly basis) and more focus on operational team. The SMART goals are cascaded from top to bottom based on the same concept of long term and short term objectives in your performance management system and further evaluated on yearly basis. SMART stands for Specific, which means you have to specify what are you expecting from an employee and it should be Measurable (objective rather than subjective) Achievable (based on the facts such as market trend and your SWOT analysis), Realistic rather than unrealistic based on assumptions and Time-bound (time frame is very important to define the achievement period, considering to measure / evaluate the performance every year and ensure that the expected output is delivered on time).

• I truly concur with Adam and Kumar, but in addition they are important in that The Theory of MBO can be applied in any organisation.
• Employees are more self directed than boss directed even though this might not work in the military or other essential services organisations.
• There is better communication and coordination within an organisation.
• Fosters increased motivation and ultimately job satisfaction.
• Greater participation in the setting of goals and decision making.
• Relationship building between bosses and employees.
• Deviations can be monitored and rectified.

SMART goals are goals that employees can realistically and consistently reach and therefore provide crucial motivation. SMART is an acronym for Specific, Measurable, Attainable, Relevant, and Timely, each of which plays an important part in the creation of one single goal. A SMART goal provides an individual with more direction and a better ability to achieve the goal by the targeted completion date.

the specific ways to set a SMART goal going forward:

1. Set a goal that is SPECIFIC

Specific goals have a much better chance of being reached because they clearly define what is trying to be accomplished. When setting, include why the goal is important and how you intend to accomplish it. Take into consideration the five “W” questions when setting specific goals.

• Who? Who is involved?
• What? What do I want to accomplish?
• Where? Identify a location.
• Which? Identify requirements and constraints.
• Why? Specific reasons, purpose or benefits of accomplishing a goal.

2. Set a goal that is MEASURABLE

A measurable goal should include a plan with targets and milestones that you can use to make sure you are moving in the right direction. A goal to “significantly increase sales” is not specific or easily measured. A SMART goal states “increase annual sales by%”. The specific and measurable target number allows you to accurately gauge your progress along the way. Find what exactly a% increase means and keep that number as your year-end goal. After the first quarter, are you on target to get to%? Do you need to adjust your activities for the next three quarters or are you on track?

3. Set a goal that is ATTAINABLE

Goals should motivate, not discourage. People are motivated by accomplishment, so ensure that goals are achievable and won’t overwhelm the individual. An attainable goal should be realistic and include a plan that breaks your overall goal down into smaller, manageable action steps that use the time and resources available to you within the timeline you have set. Take a look at your calendar for the year and review your workload to make sure the goal is realistic and make sure you are ready to make the commitment to reach your target. You may either be underestimating or overestimating your potential to complete the goal.

4. Set a goal that is RELEVANT

A relevant goal should make sense when measured against your business model, mission statement, market, client base, industry and even your specific position within the organization. Let’s say you are in Sales, you most likely would not set a goal for hiring employees within your organization. That would be more relevant for someone in the HR department to set.

5. Set a goal that is TIMELY

A time-based goal is limited by a defined period of time and includes a specific timeline for each step of the process. By setting a deadline, you are more motivated to take action to attain this goal rather than putting it off for as long as you can.

Employees are motivated by goals. By ensuring that goals are SMART and by encouraging that they are set at the beginning of a performance cycle, your company can increase motivation, which will likely lead to increased production and, in turn, an improvement in your company’s bottom line.

WITH SMART YOU CAN BE REALISTIC WITH THE GOAL AND EMPLOYEE

Specific, Measurable, Attainable, Relevant and Timely

Now it extended to SMATER, E stands for extending which means stretching employee's capabilities to acheive full potential & R stands for Rewarding which is reflected in Merit Increase & Bonus.

Align individual performance objectives with organizational goals & business objectives

Encourage & Improve open communication between employees & their managers

Track progress and stay motivated

Peter Drucker, one of the well-known management gurus, once said that what gets measured gets done.  SMART goals give a clear direction to both managers and employees. Goals cannot stand along unless driven by employees and supported by the manager. Setting SMART goals will minimise ambiguity for employees emphasising the purpose and how to achieve what is expected of him/her while enabling managers to measure performance against the expected level which provides continuous feedback and support to get there.