ABSTRACT
Goal setting is an integral part of the performance management process. When employee goals are challenging, and when they are aligned with the organization’s higher level goals, they provide greater meaning and purpose to the work and have been shown to foster employee engagement. Research suggests managers can also use goal setting in support of engagement when they minimize obstacles to performance, provide the resources necessary for employees to do their jobs, and engage their employees in the goal setting process. This chapter provides a framework for setting goals, discusses the origin and types of goals (performance and development), provides a step-by-step process for manager--employee goal setting, presents suggestions for cascading goals, and frames the motivation to achieve goals in the context of expectancy theory. The conundrum of how to evaluate the level of achievement when setting challenging or stretch goals is addressed.
