Employees who understands their own goals in an organization will naturally get more engaged in what they do. Goals give an individual more purpose in life and something to look forward to which in turn increases performance.
When setting new goals it is important to keep in mind that the best goals are formulated SMART: specific, reasonably attainable and time-bound. Many employers put systems like this in place to justify promotions, bonuses or raises. In such systems a number of employee goals must first be attained before they can come into consideration for a higher level job.