Abstract
This paper addresses the importance of goal setting in the operations function. The importance of goal setting and its possible role in the implementation and operation of production systems is considered with particular emphasis on Material Requirements Planning (MRP). It has been argued that an operative goal setting process can improve employees' performance in any area of the organisation. Likewise, companies with a high‐level MRP system are expected to show high performance levels. This paper offers empirical support for these claims and further argues that the combination and interaction of the two processes results in synergistic effects. To support these arguments the paper draws on both theoretical studies and the results of a small regional survey.
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