(gentle upbeat music) Becoming a better employee and manager starts with having the right goals. In the following lessons, you'll learn how to set personal goals and manage company goals that are motivating and attainable. You'll also learn how to use the SWOT analysis to create short-term and long-term goals that improve your organization. Why is it important for company leaders to set goals and manage the performance of employees? Well, goals can provide a long-term vision for company objectives and a short-term vision for daily work. This helps employees at all levels by giving them a direction for certain projects and making work more meaningful. If you have a goal to work toward, it's easier to be productive and efficient in the workplace. Goals can also help employees manage their resources and prioritize their time. Individuals who don't focus on goals tend to have a hard time with specifics and clarity. This can negatively affect their performance and productivity levels. Goal setting can be motivational and inspirational. It can help employees focus on what's important and achieve personal satisfaction by following through on essential work. Setting goals can also help employees and managers measure work progress. If the goals are too general or vague, it can be difficult to monitor their progress or measure their completion. Effective goal setting allows individuals to evaluate the success of their current work and adjust as needed. Performance management and goal setting go hand in hand. Performance management is the process of ensuring that employee activities support organization's goals. Every employee has a part in achieving company-wide objectives by following their own set of individual goals. As a manager, it's important to understand the relationship between smaller individual goals and bigger organizational goals. For example, imagine that one of your company's strategic objectives is to increase overall sales by 10% over the next year. To meet this company-wide goal, employees may be asked to make 10 sales calls per week. By following this weekly quota, employees are contributing to the overall objective to increase sales by 10%. As you can see, performance management is an ongoing discussion between managers and employees, rather than a single conversation. By regularly evaluating employee progress and productivity, managers can ensure that their team continues to contribute valuable work to meet the objectives of the organization. Managers can support the long-term success of a company by coaching their team on short-term goals and daily performance.