Goal setting should be mutual – an agreement between manager and employee. Look at what your manager is trying to accomplish and ask "How does the work I do contribute?" "What is expected of me?" If you don't have clear goals, set up a meeting with your manager and discuss them. Negotiate on what you think makes sense. Beware of common mistakes with goals such as vague language, not tied to a timeline, not measurable, too many or too complex and lengthy.
Typically, goals are short and to the point (no more than a few sentences long) and address the SMART rule of thumb. SMART goals are Specific, Measurable, Aligned, Results Oriented and Time bound. Specific describes the behavior. Use active verbs such as direct, organize, plan etc. Make it a numeric goal. If you can't measure it, you can't manage it. Aligning goals with your manager, team or unit objectives will lead to the desired result. Finally, there is clear timeline to attain the goal that is realistic. For example, Launch new advertising campaign in March and increase in-bound leads by 10 percent.
Without common goals, you run the risk of being out-of-step with your manager and how your performance is evaluated, potentially impacting your pay increase.