By default, managers can create and edit goals for their direct reports. You can learn more about how permissions work with performance goals here. 

Start by selecting the employee you want to create a goal for in Performance > Goals > Overview.

Here, you'll be able to see all of the employee's goals, and if you have the "View and Edit" permission, you'll have the option to create a goal for that employee.

Configure the new goal and hit "Save".

This will trigger an email to the employee notifying them that they have a new goal.

All employees also have the option to create goals for themselves. The process is very similar to managers creating goals for other employees, but the button can be found under Performance > Goals > My Goals.

When employees create goals for themselves, the goal is shared with their manager and anyone else who has permission to create and edit goals for them.