Who should be involved in goal setting during the performance appraisal process?

• A. Manager only
• B. Employee and manager
• C. Peers in the department
• D. Employee alone

Answer: (B)

Collaborative goal setting in the performance appraisal process ensures goals are realistic, aligned with organizational priorities, and owned by both the employee and the manager. When both people contribute, goals reflect what the employee can genuinely achieve and what the manager needs to drive team and company results. This shared approach clarifies expectations, guides ongoing feedback, and supports development planning, making it more likely the employee stays motivated and engaged.

If only the manager set goals, the employee might lack buy-in or feel the targets are imposed. If the employee set goals alone, there’s a higher risk of misalignment with department or organizational priorities and insufficient guidance on feasibility. Involving peers is not typically necessary for individual performance goals, though team-level goals can involve peers when appropriate.