Goal-Setting Theory

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Goal-setting theory is one of the most popular theories in organizational psychology. Edwin A. Locke began to examine this idea in the mid-1960s and continued researching goal setting for thirty years. Locke derived the idea for goal setting out of Aristotle’s theory of final causality. According to Aristotle, action is caused by a purpose; thus, Locke began researching the impact goals have individual performance.

For goals to increase performance, it is imperative that they are difficult and specific. Performance tends to be lower with easily attained goals then with more difficult goals. A vague goal is not likely to enhance performance. A specific goal can be given through quantification or enumeration, which is using a certain number or a list, such as increasing productivity by 20 % or by giving certain tasks that need to be completed.

Goals can affect performance in three ways. First, goals narrow attention and direct efforts to goal relevant activities, and away from undesirable, and goal irrelevant actions. Second, goals can lead to more effort; for example, if you typically produce 4 widgets an hour, and the goal is to produce 6, you are likely to work more intensely then you typically would to reach the goal. Third, goals influence persistence. You are more prone to work through setbacks or work harder, if you’re pursuing a goal.

The goal-performance relationship is subject to various moderators. Goal commitment is the most influential moderator. Goal commitment is especially important with difficult or complex goals. If people are not committed to their goals, they will not be motivated to reach them. In order for someone to be committed to a goal, they must believe it is important or significant. Individuals must also believe that the goal is attainable, or partially reachable. If they think there is no chance to reach it, they may not even try. Self-efficacy is a second moderator in goal setting theory. The higher someone’s self-efficacy regarding a certain task, the more likely they will be to set a higher goal, and the more persistent they will be in achieving it.

In order for goals to enhance performance, there needs to be feedback. It is difficult for goals to be effective if an individual can not check where his or her performance is in relation to their goal. It is important that people know where they stand in achieving their goal, so they can determine if they need to work harder, or if they should change their methods.

As a result of advancements in technology, feedback can be given more effectively. There are computer programs available that are designed to track goals for numerous members of an organization. The computer system maintains every employee’s goal, as well as their deadline to reach it. The Employee’s progress is checked on a weekly basis, and those that are slacking are asked to explain themselves, and how they intend to remedy the situation.

There are limitations to goal setting theory. In an organization, the goal of the manager may not be consistent with the goals of the organization as a whole. In this case, the goals of the individual would be in direct conflict with the organization that employed him or her. It is essential that goals between the organization and the individual are aligned, or performance could be undermined. Moreover, for complex tasks, goal setting may actual impair performance. In these situations, an individual may become preoccupied with meeting the goals, rather than performing the task.

Reference:

Lathem, G. & Edwin Locke, (2002) “Building A Practically Useful Theory of Goal Setting and Task Motivation,” American Psychologist, (57) 9:705-17.

Locke, Edwin A. (1996) “Motivation Through Conscious Goal Setting,” Applied and Preventive Psychology, 5:117-124.

Locke, Edwin A. (2001) “Motivation by Goal Setting,” Handbook of Organizational Behavior, 2: 43-54.