Goal-setting is important because of the following reasons:
1. Mobilises Energy: Goal-setting helps in mobilizing the overall energy of the organization. When the organization is directed towards achieving a small number of important targets, then the organization’s energy is focused on achieving strategic objectives.
2. Increases Chances of Success: Goal-setting enhances the chances of success. By setting definite targets and laying down specific methods for their achievement, goal-setting reduces the scope of bogus excuses that are given at the time of failure.
3. Increases Concentration: Goal-setting enables an employee to improve his concentration by focusing on critical success factors. For the achievement of a goal, it is essential that the person must express his desire for accomplishment.
After the expression of a goal, a path for the achievement of the goal can be created for the employee to follow.
4. Assess Performance: Goal-setting, on the one hand, enables the employee to monitor his work, while on the other hand, it facilitates management to measure the development level.
Goals can be used at the time of employee assessment to determine the level of achievement against the laid down goals.
Further, goals enable the management to identify critical changes necessary to bring improvement in the future.
5. Provides Motivation: Goal-setting is structured to motivate employees to meaningful action and thereby improve their performance.
When the employee is engaged in the process of goal-setting, he develops a special interest in the achievement of that goal.
This engagement at the emotional level serves as a great motivating force in achieving the stated goals and can help the employee achieve greater success.
6. Increases Awareness: Goal-setting makes a person aware of his own strengths and weaknesses. While working towards goal achievement, employees get aware of the areas that need improvement.
Moreover, goal-setting enables the identification of strengths that can be effectively used for improving results or achieving results more quickly.
7. Specifies Priorities: Some employees face problems in completing their targets because they are not aware of their priorities. In the absence of definite goals, employees tend to spend more time on distracting things than on meaningful tasks.
These distractions may include computer games, web surfing, etc. Goal-setting creates a clear action plan for the employees that force them to define their priorities and reduce distractions.