Knowing yourself and what you want is very important. If your job just poofed out of existence today, but you still made the same salary - what would you want to do with your time?
Once you have that firmly entrenched in your head, then you can begin the negotiation with your manager and your company on how to align your personal wants with the company's wants.
I think it's bad when you-and-company don't have that alignment, because it means one (or both) of you hasn't truly thought about what you want and aren't communicating your desires well.
The endgame in all of this is an agreed-upon social contract between you, your manager, and your employer. You agree to provide a certain amount of work in exchange for compensation, which might include money, learning opportunities, pleasant coworkers, an easy commute, etc. Proper goal-setting, at its best, should be just ironing out line items in that contract.