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

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

Answer: (B)

Collaborative goal setting in the performance appraisal process works best because it combines the employee’s insight into their capabilities, development needs, and workload with the manager’s view of team objectives, resources, and expected results. When both participate, goals are more specific, measurable, achievable, relevant, and time-bound, and there’s clear agreement on what success looks like. This shared process builds ownership and accountability: the employee understands what’s expected and the manager can ensure alignment with broader organizational aims. Relying on the manager alone can yield goals that aren’t realistic for the employee or don’t reflect their strengths or career plans, while having the employee set goals without managerial input can lead to misalignment with department priorities and available resources. Peers can offer useful feedback, but they aren’t typically responsible for final performance expectations and goal attainment.