Abstract
Using a classic grounded theory approach, this study identifies a counterintuitive managerial behavior that results in blurred employee goals being set during annual reviews. The findings reveal that the main reasons managers choose to purposefully blur employee goals is to maintain evaluation flexibility of their subordinates. This behavior is seen to occur despite managers’ awareness of the benefits of setting specific goals, which are supported by extensive research and management practice. Less specific employee goals lead to significant detrimental consequences on the effectiveness of the Performance Management System. Through studying managerial blurring of employee goals, this study identifies some new antecedents of goal specificity in managerial goal setting.
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