Target Setting And Firm Performance: A Review

Abstract

The consequences of missing targets can be found on a daily basis in many organizations. As such, targets and target setting in an extremely important topic to companies and one that should receive more attention.
 Although the vast amount of reasons for missing targets are difficult to study, the process of setting the target which includes budgeting has been proven to affect performance and achievement through goal setting theory (Locke & Latham, 2002). Thus, targets are an important element in almost every organization (Chenhall, 2003).
 We focus this review of literature exclusively in the relationship between target setting and firm performance and as such consolidate, organize, and synthesize past literature in this field and provide a clear direction for future research. We further identify two impactors found to affect firm and management performance but never researched as an impactor of the relationship between target setting and firm performance. Those impactors are Transparency of targets and length of management experience.
 In this paper, we fill the gaps identified above and inform the study of target setting in order to spark future research on this topic. We also identify the dimensions affecting the relationship between target setting and firm performance as well as the different measurement approaches in target setting literature.

The Effect of High Targets in The Development of Infrastructure and Organizational Culture on Organizational Commitments to Employees and Performance

“…We use Cascio's [31] instrument to assess corporate culture using a 7-point Likert scale. Rating: Respondents move from "strongly disagree" (1) to "strongly agree" (7). The cultural variables used are derived from Schein's organizational theory and Cascio's theory of ten cultural categories commonly represented by Ivancevich [31] and Robbin [38].…”

“…In almost all organizations, targets play an important role as one of the elements of management control [5], [6]. Targets also serve as decision aids in planning, coordination, and resource allocation [7]- [9]. The organization's commitment to its employees is evident in its focus on employee satisfaction, satisfaction of work, equity and compensation, and investing in skills and rewards [10].…”

Exploring the Attributes of High-Performance of a Team Leader in Business Process Outsourcing

“…Subsequently, managers can enhance their employees' capabilities by adhering to the fundamental principles of goal-setting, which include but are not restricted to accountability, feedback, competition, or challenge, as well as the clarity and intricacies associated with jobs (Motiani & Kulkarni, 2021). Establishing objectives that align with attainable targets and using industry standards makes it feasible to steer the organization toward a favorable trajectory (Yitzhaky & Bahli, 2021). As the task becomes more complicated, it shall be accompanied by leaders' feedback and recognition to monitor agents' progress toward hitting monthly key performance indicators.…”

A Design Method to Achieve Decarbonisation in Airports with Battery Operation Algorithm Considering Uncertainties

“…Setting targets and goals are empirical to companies as they impact its own performance [7]. A practical and a numerical roadmap is without exception important for the aviation industry to achieve decarbonisation and move beyond its current state.…”