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Does Goal Setting Affect Employee Performance?

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Does Goal Setting Affect Employee Performance?

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Goal setting can affect employee performance in many positive ways if the goals are both relevant to the company and realistic and achievable by the employee. Employers must give employees a clear direction when it comes to goal setting so that the objectives of top management are being met. If employers guide employees in setting goals that really matter to the company, the employee is often more empowered knowing his or her job is actually important to the organization’s success. The results of such empowerment on employee performance are often an increased motivation to do the job and an increased sense of loyalty to the company. Although pay raises and/or promotions are goal setting incentives that should be awarded when warranted, increased motivation and increased loyalty can also result from the positive attitude employers give employees in the goal setting and goal achievement processes. Studies show that employees often exceed performance expectations. This is demonstrated in

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