Benefits of a Goal Setting System

There has been much discussion in business and management literature around goal setting systems and their effects on business success and employee motivation. Being able to motivate employees is the chief tenet of most business leaders. It has been realised that instead of just a simple job description to employees, setting goals congruent with both employee’s emotional motivators and in line with the company vision will produce better results consistently over the long term. It will be necessary to now mention some more benefits of a goal system.

Clarity of Purpose

Just as business vision and mission statements provide an overall purpose and clarity for the future goals of the business, individual goal setting systems provide the same focus, drive and clarity for individuals. There are times when the corporate vision is lost in translation and this is where individual goal frameworks can fill in the gaps and provide clarity for departments and individuals. These goals clearly state intended results of where management expect employees to focus their efforts.


Many businesses have a problem raising productivity and efficiency because employees and departments are at cross purposes by following different overall goals. By establishing departmental and individual goals that coincide with an overall vision of the company, optimal use of resources can be focused toward the same result.

Better Decision-Making

Business leaders often make better decisions because they understand the intended goal of the company. By providing clear goals for individual employees it will also empower them to make better decisions in line with the overall progress of the company in mind.

Easier Evaluation

Evaluating the performance of a company and its employees can be an onerous task especially when there are no comparatives, goals or frameworks from which to evaluate. By setting up goals for individuals and departments, the performance review and evaluation component of goal systems can provide an effective measure of performance.

Developing Talent

Employees can be faced with challenges of mediocrity simply if they are not challenged with goals which will help raise them above their own current capabilities. In order to push the progress of a company it needs to develop the capabilities of its own employees. By setting top-tier goals, employees will strive to learn new skills and innovate within their development framework.

Enhanced Management

With middle and upper management focusing on their own goals and development this reduces the tendency to micro-manage of employees and this leads to enhanced management. Consistent review processes included in most goal frameworks also provides a way to consistently review employees without worrying about the day to day operations.

Motivation Booster

The morale and motivation of individuals in corporations can sometimes wane in intensity and purpose. However, by providing specific goals attached to possible benefits in a consistent review process, employees receive regular feedback on their progress. This provides motivation to continue focusing on their goals.

The benefits of a goal system are far more reaching than any other motivational or morale boosting tool within business management. Instead of providing fleeting benefits such as bonuses, a true goal framework can provide regular feedback and motivation to employees for the advancement of the corporate vision.

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