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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.
