The importance of  goal setting in business cannot be overstated. The setting of goals is important to guide the company and employees toward defined objectives. Without goal setting and the necessary motivation for goal attainment, businesses are without purpose or direction.

Importance of Goals

Business goal setting is important because it turns aspirations into tangible objects which require commitment and action. Used for measuring performance, increasing revenue and meeting business challenges, goals ideally include specific guidelines, details and outline resources necessary for attainment. The act and practice of goal setting allows the business and its employees to gauge the direction the business wishes to go, and can give credence to established business models, mission statements and overall objectives.

How Goals Affect Motivation

It is important for business owners and managers to understand how goals affect motivation. Having no goals at all will almost certainly cause low motivation, but badly-planned goals, or those that are too vague or don’t adhere to the company’s direction, can have the same effect. Goals that are well-defined, within the grasp of reality and adhere to the company’s primary objectives, mission and scope of work, will almost always result in positive motivation.

Motivation And Goal Attainment

Just as goals have an effect on motivation, motivation has an important effect on goal attainment. Even the most well-defined, reachable goals will be difficult to attain if motivation is low, and goals alone are not a sure cure for low motivation. The company’s culture, working atmosphere and attitude must be positive in order to raise motivation to productive levels. The importance of a positive environment is a paradigm that every business must understand, as employees working with undue stress and pressure will invariably lose the motivation necessary to reach goals.


There is an important balance between goals and motivation. Goal-setters within the organization must always consider how goals will effect motivation, and how the current motivation level will effect attaining the goal. One way to create and maintain this balance is to add incentives to the goal that positively impact employees. When employees see a reward on the horizon, motivation often improves and the goal has a better chance at being realized. Ultimately, employees are motivated by factors that directly and positively impact their careers and personal lives.


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