In: Accounting
ANSWER: Setting business goals within an organization is practiced on a global level, by all forms of businesses. Top level management set business goals so as to help increase motivation and determination, as well as to offer critical learning strategies for training purposes.
However, one must have specific goal-setting knowledge and leadership training geared towards the business environment, or else they might set vague goals that are without boundaries.
Accomplishing the goal can either lead to satisfaction and further motivation or frustration and lower motivation if the goal is not accomplished.
Thus,according to research goal setting can be considered to be a very powerful technique if worked under the right conditions.
Main purposes of organisation goal setting :
1. Focus Oriented : By setting goals for the organisation, they give themselves a target to achieve. This gives the employees a sense of direction allowing all to collectively focus on a common target, rather than waste energy shooting aimlessly, it allows the organisation to achieve their target and reach their goal.
2. Measured Progress : By setting goals, the organisation is able to measure their progress, because there is always a fixed endpoint or benchmark to compare with.
3. Clearer Focus on what is important : When there is a certain end point in mind, the employees will automatically stay away from certain distractions or what can be deemed as unnecessary and stay focused on the goal. If the organisation does not set well thought out goals, the employees might end up spending time doing things not important to the end goal.
4. Provides Motivation : Meaningful goals give the workforce something to aspire towards and envisioning reaching them can be quite motiational. The more short term goals they accomplish, the more realisitic a long term goal feels. That feeling of accomplishment fuels their desire, feeling motivated and striving to achieve more.
5. Promotes Teamwork : Alongwith keeping everyone motivated, setting goals also helps encourage people to work together. When everyone is working towards a common goal, they are more likely to come together to accomplish it. If there are group rewards in place, this encourages people to work together even more.