Goal Setting Methods and Organizational Goals

Vocabulary flashcards covering traditional goal setting, top-level and subgoal structures, goal misinterpretation, and lower-level goal achievement.

Traditional Goal Setting Methods

An organizational goal-setting approach where broad, general goals are set at the top level of management (such as by the CEO and CFO) and subsequently broken down into subgoals for each lower organizational level.

Top-Level Goals

Broad objectives set by executive leadership—such as levels of profitability, product line expansion, or total customer count—intended to direct, guide, and constrain from above.

Subgoals

Targeted objectives established by middle managers and lower-level management for their specific areas of responsibility to help achieve broader organizational goals.

Goal Misinterpretation / Loss of Clarity

The primary issue in traditional goal setting where goals lose clarity and focus as different levels of managers attempt to interpret and define them, resulting in employee actions that differ drastically from top management's intent.

Achievement of Lower Level Goals

The means by which an organization successfully reaches its higher-level goals and overall performance objectives.