Goal Development Theories and the Use of Terminal Goals in Organizational Goal Setting

Abstract

Corporate goals are generally established to provide guidance and direction for employees and managers to focus organizational efforts. A review of existing literature and theories about approaches to goal development are used to explore how goals that have a finite target may have an impact on the organizational climate and employee perspectives. A proposed model is offered which describes how the type of goal may have an effect on employees’ commitment to the organization, expectations of reward, and employment transitions.