In an era where public sector institutions worldwide are under increasing pressure to demonstrate efficiency, transparency, and results, performance management frameworks such as target setting have become essential tools for driving organizational effectiveness. Target Setting refers to the process of establishing specific, measurable, achievable, relevant, and time-bound (SMART) goals and objectives within an organization. In this study, target setting is operationalized as the clarity, alignment, and effectiveness of targets in motivating employees and communication of targets within the Murang’a County Government. Target setting, as a fundamental element of performance contracting, plays a critical role in enhancing accountability and service delivery within government systems. This study investigates the effect of target setting on organizational performance, focusing on Murang’a County Government in Kenya. Organizational Performance on the other hand refers to the effectiveness and efficiency of an organization in achieving its goals and objectives. In this study, organizational performance is operationalized as the extent to which the Murang’a County Government achieves its strategic objectives, enhances productivity, and allocates resources effectively. The rationale for the study stems from the need to strengthen public service delivery in devolved units by examining how structured goal-setting practices influence institutional outcomes. Employing a mixed-methods research design, both quantitative and qualitative data were collected from a purposive sample of 358 respondents drawn from managerial, supervisory, and subordinate staff levels. The analysis revealed that involving employees in the development of specific, measurable, achievable, relevant, and time-bound (SMART) goals significantly boosts motivation, ownership, and job performance. Moreover, the alignment of individual targets with institutional objectives was found to enhance transparency and responsiveness in service delivery. The study concluded that strategic and participatory target setting is instrumental in driving improved organizational outcomes in devolved government systems. The findings offer practical implications for public sector performance management and policy formulation aimed at optimizing human resource engagement and institutional efficiency.
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