The role of goals and goal setting in organizations.

Goals are the future outcomes or results that individuals and groups desire and strive to achieve. Goal setting is a process intended to increase efficiency and effectiveness by specifying the desired outcomes toward which individuals, teams, departments, and organizations should work. 

Thus, the role of goals in organizations is to specify the outcomes or results that need to be achieved. In turn, the role of goal setting is one of maximizing the production of desired outcomes or results with a minimum of waste, expense, or unnecessary effort, and thereby facilitating organizational success through the achievement of overall organizational goals. Thus, in effective organizations, goals will influence reporting relationships, job descriptions, and performance evaluations.

Management by objectives (MBO) is a management system that uses goal difficulty and goal clarity as its foundation for motivating employees. In essence, this management system involves managers and employees jointly setting goals for performance and personal development, periodically evaluating the employee's progress toward achieving these goals, and then rewarding the employee.
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