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The Relationship of Goal Setting to Organizational Profitability

University of Mississippi

Elizabeth J. Rozell

Missouri Southern State College

A survey was conducted of organizations as to the extent of use of goal-setting theory and applications, and it was investigated whether organizations that used goal setting were more profitable than those that did not. A positive relationship was found between the use of goal setting and profitability. Thus the results provide some initial evidence for the possible impact of goal setting on organizational-level measures of performance. Industry type and organizational size appeared to have little influence on the use of goal setting; however, the relationship between the use of goal setting and profitability did vary somewhat by industry classification.

Group & Organization Management, Vol. 19, No. 3, 285-294 (1994)
DOI: 10.1177/1059601194193004


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