Goal Setting

Meaning & Definition

Goal setting in HR is the process of creating clear, measurable, and time-bound objectives for employees. Goal setting helps to align employee performance with business-related objectives, improves focus on reaching said objectives, and allows you to track employee progress on achieving these objectives. Effectively setting goals provides employees with clarity about what is expected of them and helps them to move toward specific results.

Important Aspects of Goal Setting 

• Helps to ensure that employee performances align with the goals of the organization. 
• Shows improvement in productivity and accountability. 
• Assists with performance management and performance appraisal processes. 
• Supports employees in motivating and engaging. 
• Improves the tracking of performance results and helps to report on performance results.

Applicable Regulations & Policies 

There is no direct statutory compliance related to this term. This is included in performance management systems (PMS) and may also be incorporated into a company’s HR policy. Incentive plans, performance appraisal, and employment contracts may also have contracts.