Goal-Setting Theory (Motivation)
What is Goal-Setting Theory?
Written by Jason Gordon
Updated at October 24th, 2023
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What is Goal Setting Theory?
Goal-setting theory states that goal setting has an effect on task performance. Goals provide direction to employees about what needs to be accomplished.
Who Created Goal Setting Theory?
Goal-setting theory was proposed by Edwin Locke in the 1960s.
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Premises of Goal-Setting Theory
Below are the premises of goal-setting theory:
- Clear and Challenging - Goals should be specific and challenging. Such goals relate to higher performance in completion. Clear, unambiguous goals avoid misunderstanding.
- Realistic - Goals should realistic and capable of being achieved.
- Feedback - Employees should receive feedback that directs their behavior.
- Participation - Employee participation in goal setting facilitates accepts and increased involvement.
Results of Goal-Setting Theory
The anticipated result of goal setting is:
- Self-Efficacy - This concern employee self-confidence in a performance task. Generally, self-efficacy leads to higher performance through increased effort.
- Goal Commitment - This assumes that individuals will become committed to the goal and be reluctant to leave it. This is true for goals that are openly communicated, self-set by the employee, and consistent with organizational goals.
Goal-setting theory is linked to improved performance, increased output, increased commitment, feelings of self-efficacy, and organizational culture.
What are the Limitations of Goal-Setting Theory?
Goal-Setting Theory has limitations when the managers goals differ from the organizations goals.
Difficult goals tend to cause riskier decisions by employees. Over-assessing an employee's ability can make the goal too daunting and discourage completion.
