SMART Goals :

The study believes that the goals must be SMART in nature and shall be formulated by the top-level management exactly following these guidelines. The research studies established that the SMART goals are easy to translate into the mission statement, strategies, objectives and tactics. Furthermore, the goals defined SMART tend to have a positive impact on the overall performance of the business firm. DeArmond et al. in 2018 revealed that SMART goals have a positive impact on the earning performance of the firms. The firms with clear goals set have improved return on investment and the return on equity, whereas, Dartey-Baah in 2016 established that the expansion of the business size in terms of the number of employees and assets is strongly associated with firm goal-setting theory. The SMART goal-setting theory is applied to for a structured and organized mechanism for formulating the goals in the organizations. Thus, SMART goals are explained as under:
Specific:
The term specific goals refer to what exactly the management knows what to achieve, for instance, the targeted profit of $5.00 million over the next year. This construct of the SMART needs to be answered by combining the what, where, how, when, with whom, the associated what conditions, limitations, and what possible alternatives tend to reach on the goals.

Measurable:
The 2nd construct of the SMART goals is the measure; this covers the concept that the goals must be measured in terms of its performance and quantification. The managers must set the goal where exactly it reaches and gives feeling or quantification of achieving it. It is generally done by breaking down the entire goals into measurable elements. For instance, the firm may be interested to attain the 30 percent share of the entire market.

Achievable:
The 3rd construct of the SMART goal is the achievable goal setting which believes that the goals must be achievable. They must be set keeping in view all the resources and limitations. The studies believe that all the costs, time and the bounded rationalities must be taken to the account while setting the goals and those must be achievable
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Relevant:
The 4th construct of the SMART goals explains that the goals must be relevant that means that the goal must be really what the business organization wants to be, for instance, doing global business, having a job, working for welfare, serving the health care industry, etc.

Timely:
This is very important that the goals must be specific, measurable, achievable and relevant but will produce results only when they are applied in a timely manner. The application of the goals well in time is important to draw the benefit timely.
In addition to the SMART goals, it has also been viewed and argued that the goals must be reward oriented since the rewards are the driving factors of the behavior of the personnel who are expected to achieve those goals by formulating the strategies, objectives, plans and the tactics.
Thus, the analysis of the SMART goal setting has revealed that the goal-setting must consider the construct of goal setting to come up with a line of direction to reach on the desired outcomes. The research studies have argued that in addition to the SMART goal settings, the goals shall also be formulated and established positively removing the element of the agency issues (Boes, Buhalis and Inversini, 2016; Errichiello and Marasco, 2017; Kumar et al., 2018; Sergi et al., 2019; Szanyi-Gyenes, 2019).

Values:
The 2nd best condition identified by Miles and Vergen is values that are cultivated within the working culture of the organization. These values are closely associated with the SMART goal setting, feedback, reward orientation, leadership, and guidance. The research believes that the values shared by the groups and teams within the organization have a stronger impact on the goal setting and achievement. The research studies developed the theories that the goals shall be set by seeking the opinion of the working teams at all levels. The studies believed that the organizations sharing culture and values of setting goals with mutual consent and participation at all levels tend to have a more positive impact on the performance of the firm.

Improved performance:
The 3rd best condition identified by Miles and Vergen is the improved performance of the firms that must be the result of the goal-setting. The study believes that the SMART goal setting, timely feedback, recognition and the and goal settings by groups and individuals by participating at all levels results in the improved performance. This practice of goal setting is, in fact, the outcome which must be generated after the goals are set by the organization.
The overall analysis of the literature and the three conditions identified as to the best practices reveal that the SMART goal settings and organizational values together result in the improved performance of the firm.