THE RELATIONSHIP OF GOAL-SETTING TO ORGANIZATIONAL PROFITABILITY

A survey was conducted of organizations as to the extent of use of goa l-setting theory and applications, and it was investigated whether org anizations that used goal setting were more profitable than those that did not. A positive relationship was found between the use of goal se tting and profitability. Thus the results provide some initial evidenc e for the possible impact of goal setting on organizational-level meas ures of performance. Industry type and organizational size appeared to have little influence on the use of goal setting; however, the relati onship between the use of goal setting and profitability did vary some what by industry classification.