[0xbadcafebee]

For one, if they don't meet their goals, you can fire them. It's a great tool to weed out the chaff. And it requires managers work with employees, and all of it gets read, so nobody in the organization can hide if somebody else didn't set goals. Basically it's a check to make sure half your company isn't totally out to lunch.

You can use it as a political tool. A senior exec can brag that their division consistently meets or exceeds their goals.

It's also a tool to encourage employees not to sit on their asses. You need employees to improve over time. One way is to encourage them to have goals which require them to make small improvements, whether that be in productivity, training, or moving the needle on some other company goal.