Goal Setting Theory

The theory of goal setting rests on the belief that life is a process
of goal-oriented action (Locke & Latham, 1990, 2002). Goals can
be defined as a result that individuals try to accomplish (Locke,
Shaw, Saari, & Latham, 1981). In organizations, people are moti
-
vated to direct their attention toward and achieve goals. Goals
have both an internal and an external aspect for individuals.
Internally, goals are desired ends of achievement; externally, goals
refer employees to an object or to a condition being sought, such
as a performance level, a sale to a customer, or a promotion
(Locke, 1996; Locke & Latham, 2006). The positive relationship
between goal setting and task performance is one of the most
replicable findings in the management and organization litera
-
ture (Locke, Shaw, Saari, & Latham, 1981).
According to goal setting theory, the highest levels of perfor
-
mance are usually reached when goals are both difficult and
specific. The more difficult a goal assigned to someone, the
greater the resulting performance level. When a specific, difficult
goal is set for employees, then goal attainment provides those
employees with an objective, unambiguous basis for evaluating
the effectiveness of their performance (Locke & Latham, 2006).
Goals influence performance levels by affecting the direction
of action, the degree of effort exerted, and the persistence of
action over time. For example, when an employee is told to
improve quality and not make mistakes, that employee will focus
his energy on producing a higher-quality product compared to
when that employee is merely told to “do his best” on the task.
The only exception to this is that for some creative tasks, being
130
Management and Organization Theory
15
specific may not always be possible. People learn from a very early
age that if they want to accomplish a goal, then they have to pay
attention to the goal and ignore other things, work hard to accom
-
plish the goal, and keep working hard until the goal is reached.
Performance has been shown to be higher when goals are
higher, when people are committed to reaching the goal, and
when people possess the required ability and knowledge to achieve
that goal (Locke, 1968; Locke & Latham, 2006). When giving
people goals to perform, be sure that the goal is specific, such as
“Sell one hundred computers,” or that the goal describes the
desired performance level, such as “Complete this list of seven
tasks by 5:00
p.m.
today”; otherwise, performance may not be
higher than when goals are not used.
To improve performance, help ensure that individuals are
committed to their goals (Locke, Latham, & Erez, 1988). When
assigning easy or vague goals to employees, commitment to accom
-
plishing those goals is not usually a problem. However, for difficult
goals, getting employees to commit to goal attainment can be
problematic. Higher performance levels usually result when
people are committed to reaching specific, difficult goals, com
-
pared with when people are not committed to goal attainment.
Higher levels of commitment can be reached when an individual
believes that reaching the goal is both important and attainable,
or at least believes that progress toward reaching the goal is
possible.
Goal setting has been shown to result in higher levels of per
-
formance when goals are either assigned to individuals or when
individuals are allowed to set goals for themselves (Hollenbeck
& Brief, 1987). When goals are assigned to individuals by an
authority figure, then performance expectations emerge that can
focus employee performance on reaching the assigned goal.
When individuals set goals for themselves, equally high perfor
-
mance increases have also been found, provided that the purpose
or rationale for having a goal was carefully explained by managers
or supervisors. However, when a goal is harshly or tersely set
without explanation—“Do this or else”—then performance can
be substantially lower compared to when goals are self-set.
Goal setting results in the highest performance levels when
people are given feedback about how well they are performing
(Locke, 1967). For some tasks, performance levels are self-evident,
Goal Setting Theory
131
15
such as when an employee has been assigned to mow a lawn.
However, for other tasks, employees might not be able to determine
on their own how well they are performing, so it is helpful to peri
-
odically inform people about their progress toward their goals.
People with high self-efficacy set higher goals for themselves
than do people with low self-efficacy (Locke & Latham, 2006).
People with high self-efficacy tend not to be satisfied with lower
goals or with lower performance levels for themselves. Managers
can help increase employee self-efficacy by providing adequate
training and education to improve mastery of necessary skills,
finding role models with whom individuals can identify, and
expressing confidence and belief in the employee’s ability to
accomplish the performance goal.
Goal setting effects may be weaker depending on task com
-
plexity (Earley, 1985; Jackson & Zedeck, 1982; Wood, Mento, &
Locke, 1987). As the complexity of a task increases, so does the
required skill and knowledge level of the employee performing
that task. People use a greater variety of tactics and strategies
when performing complex tasks compared to performing simple,
easy tasks. Goal setting effects may be smaller for a complex task
if the individual does not discover appropriate strategies and
methods while performing the task.
Criticisms and Critiques of the Theory
The theory of goal setting has received testing in both field and
laboratory settings that is arguably among the most rigorous
and thorough testing of all the theories in management and orga
-
nizations. Goal setting research studies have examined over forty
thousand subjects of all ages and in eight countries performing
more than eighty-eight different tasks ranging from one minute
to several years in length. Goal setting effects are usually quite
high, typically yielding a success rate of 90 percent (Locke, 1996).
However, there are some criticisms of goal setting theory
(Latham & Locke, 2006; Locke & Latham, 2009; Ordoñez,
Schweitzer, Galinsky, & Bazerman, 2009). Critics have complained
that goal setting theory has been overprescribed (Ordoñez, et al.,
2009). Goal setting has been described as being effective for any
type of task in any type of setting, but this may not actually be the
case in organizations.
132
Management and Organization Theory
15
The theory has been criticized for advocating goals that are
too specific or too narrow (Ordoñez, et al., 2009). Specific goals
can cause individuals to spend too much time focusing on them
to the detriment of other important organizational behaviors,
such as innovation, creativity, and flexibility. More research is
needed to uncover the influences on level of goal specificity on
performance level. Staw and Boettger (1990) found that goals
that are too narrow can lower performance levels on assigned
tasks.
Critics have argued that the theory has ignored the problems
caused by too many goals being assigned for task performance
(Ordoñez, et al., 2009). Shah, Friedman, and Kruglanski (2002)
found that individuals tend to focus only on one goal at a time
when assigned multiple goals simultaneously.
Critics of goal setting theory have argued that most research
has ignored a time horizon when setting goals (Ordoñez, et al.,
2009). For example, if short-term goals are set, then managers will
most often only focus on short-term performance at the expense
of long-term performance. Cheng, Subramanyam, and Zhang
(2005) found that focusing on meeting only quarterly perfor
-
mance goals can result in firms not investing in long-term research
and development efforts.
Critics have argued that there may not be a positive, linear
relationship between goal difficulty and task performance as
advocated by the theory. If goals are too challenging, then
undesired organizational outcomes can occur, such as unethical
behavior and unnecessary risk taking in order to accomplish goals
(Larrick, Heath, & Wu, 2009; Ordoñez, et al., 2009).
Finally, critics of the theory contend that there can be unex
-
pected undesirable consequences for employees when assigned
goals are not reached (Ordoñez, et al., 2009). For example, when
employees don’t reach goals they can have lower attitudes,
lower self-perceptions, and lower self-efficacy beliefs (Galinsky,
Mussweiler, & Medvec, 2002; Mussweiler & Strack, 2000).

Measuring Variables in the Theory

Goal orientation scales.
Zweig, D., & Webster, J. (2004). Valida
-
tion of a multidimensional measure of goal orientation.
Canadian
Journal of Behavioural Science, 36,
232–243.
Goal Setting Theory
133
15
Goal acceptance and goal commitment scales.
Renn, R. W.,
Danehower, C., Swiercz, P. M., & Icenogle, M. L. (1999, March).
Further examination of the measurement properties of Leifer &
McGannon’s (1986) goal acceptance and goal commitment scales.
Journal of Occupational & Organizational Psychology, 72,
107–113.
Measures for ten goal setting components.
Lee, C., Bobko, P.,
Earley, P. C., & Locke, E. A. (1991). An empirical analysis of a
goal setting questionnaire.
Journal of Organizational Behavior, 12,
467–482.
Multiple factor scales measuring goal commitment.
Hollenbeck,
J. R., Klein, H. J., O’Leary, A. M., & Wright, P. M. (1989). Inves
-
tigation of the construct validity of a self-report measure of goal
commitment.
Journal of Applied Psychology, 74,
951–956.
Goal commitment scale.
Klein, H. J., Wesson, M. J., Hollenbeck,
J. R., Wright, P. M., & Deshon, R. P. (2001). The assessment of
goal commitment: A measurement model meta-analysis.
Orga
nizational Behavior and Human Decision Processes, 85,
32–55.
Achievement goal measures.
Hulleman, C. S., Schrager, S. M.,
Bodmann, S. M., & Harackiewicz, J. M. (2010). A meta-analytic
review of achievement goal measures: Different labels for the
same constructs or different constructs with similar labels?
Psychological Bulletin, 136,
422–449.
Suggestions for Further Research
1.
Examine the
effectiveness of goal setting in dynamic or
interactive environments and settings, compared to static,
unchanging situations or environments.

2.
Explore the
effects of short-term versus long-term goals, and
examine the influence of combining both short- and long-
term goals on task performance.
3.
Look at the use of self-commitment versus other-commitment
on task performance.
4.
Examine the
use of goal visualization for tasks of varying
difficulty (for example, easy, moderate, difficult) and the
influences of goal setting on task performance.

Investigate the
influence of single versus multiple goals on
resultant performance levels.
6.
Consider the
influence of individual, group, and combined
individual and group goals on task performance.
7.
Examine the
effects of direct versus vicarious goal attainment
on task performance.
8.
Study the effects of conscious versus subconscious goals and
task performance.
9.
Explore the
influence of active versus passive goal priming
and goal framing on task performance.
10.
Examine the
influence of activating and deactivating goals
over time on task performance.
References to Know
Locke, E. A. (1996). Motivation through conscious goal setting.
Applied & Preventative Psychology, 5,
117–124.
Locke, E. A., & Latham, G. P. (1984). Goal setting: A motivational
technique that works. Englewood Cliffs, NJ: Prentice Hall.
Locke, E. A., & Latham, G. P. (1990).
A theory of goal setting and
task performance.
Englewood Cliffs, NJ: Prentice Hall.
Locke, E. A., & Latham, G. P. (2002, September). Building a
practically useful theory of goal setting and task motivation:
A 35-year odyssey.
American Psychologist, 57,
705–717.
Locke, E. A., & Latham, G. P. (2005). Goal setting theory: Theory
building by induction. In K. G. Smith & M. A. Hitt (Eds.),
Great
minds in management: The process of theory development.
(pp. 128–
150). New York: Oxford University Press.
Implications of the Theory for Managers
According to goal setting theory, using performance goals can
result in higher levels of employee performance compared to
when not using performance goals, because goals help employees
(1) direct attention to important behaviors and outcomes, (2)
increase effort, (3) improve persistent behavior toward reaching
desired performance levels, and (4) foster development of action
plans and performance strategies. Setting goals for employees is
Goal Setting Theory
135
15
most likely to improve task performance under the following
conditions: the goals are specific, measurable, and sufficiently
difficult; employees have the ability to perform the desired task;
feedback is provided showing progress toward goal attainment;
rewards are given for goal attainment; the supervisor or manager
is supportive of the goal setting process; and goals are accepted
by employees and viewed as important.
When setting goals, be careful not to set goals that are too
high, as employees can feel demoralized and defeated when they
perform far below the goal. Don’t set too many goals for employ
-
ees, as they tend to focus on only one or two goals at a time and
thus may overlook other goals. Be sure to set the right time ori
-
entation for employees to reach their goals. If you don’t specify
a time frame or the time frame is ambiguous, then employees will
tend to focus on short-term goals and avoid long-term goals. Be
careful to stress that goal accomplishment should only be done
through ethical behaviors, and that unethical behaviors will not
be tolerated in your organization.

___________________________________________________________________________
___________________________________________________________________________

https://smallbusiness.chron.com/advantages-disadvantages-goal-setting-1881.html

Advantages and Disadvantages of Goal

Setting
 Small Business

 Managing Employees
 |

 Goal Setting

ByAndra PicincuUpdated August 11, 2020

Over 93 percent of business professionals say that having clear goals is important to work
performance, reports a 2017 survey by Accountemps, a Robert Half company. As a small
business owner, you might be well aware of the benefits of goal setting. This practice can
improve your focus, boost employee motivation and pave the way to success. But goal setting
can also create unrealistic expectations and hold you back.

Key Advantages of Goal Setting

Goal setting is essential for a fulfilling life. Having clear goals makes it easier to
determine where you are right now and gives you something to aim for. At the same
time, it allows you to focus on what matters most and keeps you accountable. This
can lead to better decision making, increased motivation and higher productivity. As
you get closer to your goals, you'll get a sense of purpose and personal satisfaction.

These are just a few of the many advantages of goals in life, though. Goal setting
could also be the key to better health, suggests a January 2018 study published in the
journal Clinical Gerontologist. As the researchers note, setting realistic goals
motivates people to change their diet and exercise habits. This may result in a higher
quality of life, enhanced mental health and improved overall fitness.

Setting goals may also benefit your career. This practice facilitates business planning,
reduces stress and keeps you motivated when times get tough. It also allows you to
allocate your time and resources more effectively and avoid distractions. Increased
employee motivation, accountability and greater efficiency are all potential benefits of
goal setting.

When you have a clear picture of what you want, you can set milestones and tackle
one step at a time. This makes it easier to get things done and measure your progress
in real-time. Establishing goals may also help you beat procrastination and focus on
the task at hand. As Forbes notes, goal setting drives your actions and serves as a
motivational tool.

Goals Provide Direction

Imagine you have a great idea for a mobile app, so you decide to start a business and
launch your product. You register your business, hire a team to create your app, invest
in marketing and wait for the profits to roll in. A few months later, you realize that
you're selling something nobody wants to buy. So, what went wrong?

First of all, you didn't have a business plan. This document outlines your goals and the
steps needed to achieve them. As an entrepreneur or business owner, it's essential to
set SMART goals. The term stands for Specific, Measurable, Achievable, Relevant
and Time-Bound. Southern New Hampshire University  recommends breaking down
long-term goals into smaller SMART goals.

Returning to the example above, a better approach would have been to research the
market and validate your business idea before taking the plunge. If your product idea
is worth pursuing, you may draft a business plan and set SMART goals, such as
bringing in 1,500 new customers over the next six months. Such goals provide
direction and help you identify the steps needed to achieve a positive outcome.
Without a clear objective, you may end up wasting time and money.

Goal Setting Motivates Employees

Effective goal setting benefits your staff, too. According to Forbes, managers who
involve their team members in goal setting report higher engagement rates than those
who don't. When people work together toward a common goal, they are more
motivated to get things done. By establishing clear objectives, you're giving your
employees a greater sense of purpose and responsibility. Plus, you can better
measure their progress and provide timely feedback.

Employees need to know what's expected of them so that they can meet your
expectations. SMART goals serve as a tool to keep them on course and prevent
procrastination. As Forbes points out, the best way to set expectations for your team
members is to be clear and specific. That's what goal setting is all about. Failure to do
may result in misunderstandings, delayed projects, conflicts and diminished
performance.

SMART goals also motivate people to keep working and give their best until the
objective is met. Additionally, they may be used as part of a reward system. For
example, employees that know they can take a day off if they get the job done on time
will work harder. As a manager, you can set small goals for each member, keep track
of their progress and reward top performers.

This approach urges employees to think outside the box and innovate. SMART goals
fuel creativity and may lead to better problem-solving. If, say, you ask your marketing
team to increase website traffic by at least 30 percent in the next quarter, they'll
brainstorm ideas and decide on the best course of action. Without a clear goal in sight,
they may not feel the need to do things differently and try new strategies.
The Pitfalls of Goal Setting

Nearly 70 percent of successful companies say that communicating their business

goals across the organization is the best way to build high-performing teams,
reports Inc. The same source points out that goal setting allows organizations to retain
talent and keep their staff engaged. But this strategy doesn't always work.

According to Inc, nearly 90 percent of employees are not actively committed to

achieving their goals. Approximately 93 percent cannot turn those goals into action.
Sometimes, a company's objectives fail to inspire and motivate employees. Other
times, they are irrelevant to people. A goal that's too specific or grandiose is likely to
fail.

Highly specific goals may create a sense of tunnel vision and cause you to focus on
one area of your business while neglecting other aspects. Organizational objectives
tied to a reward system may affect a company's culture, create workplace conflicts
and promote unethical behavior.

For example, Ford Motor Company tried to create a light, cheap car back in the '70s
— and so the Ford Pinto was born. But the vehicle's gas tank had severe design
defects — which Ford was aware of. As a result, it caused a deadly explosion that has
cost the company millions in damages.

Why Goal Setting Can Fail

Setting aggressive goals can affect your organization as a whole. Your employees
may end up making mistakes, lose their motivation or feel stressed out. If your goal is
too ambitious, you may lose the joy that made you want to get started in the first
place. After months of hard work, you may feel like you're on a constant uphill climb
and eventually give up.

While it's true that goals guide your focus, they may also have the opposite effect.
Having too many objectives, for example, can disrupt your focus and drain your
energy. It's not uncommon for small business owners to wear multiple hats and try to
accomplish a million things at once. This often leads to mental fatigue and burnout.

As Inc notes, less is more when it comes to goal setting. The same source
recommends having no more than three to five objectives and breaking them into
smaller chunks. Determine how you're planning to measure the results and review
your progress against those metrics at regular intervals.

https://careertrend.com/facts-5312495-goal-setting-theory-advantages-disadvantages.html
 Goal-Setting Theory Advantages &
Disadvantages
Neil Kokemuller

Updated December 30, 2018

The goal-setting theory was developed in the 1960s by Dr. Edwin Locke and
Dr. Gary Latham. The general premise of their theory was that individuals and
groups produce the best output when motivated by specific, challenging,
attainable and quantified goals. Applying the goal-setting theory in an
organization has a significant number of advantages, and only a few obstacles
that goal-setters must consider.

ets a Course

The goal-setting theory is based on the notion that a goal establishes a

purpose or path for a person or group. This purpose drives direction,
motivation and intensity of effort to achieve it. When an individual has a
quantified monthly goal to attain, he is more likely to navigate obstacles in
pursuit of it. Without a clear target, you often struggle to find intrinsic
motivation to push forward through difficulty. For a work group or team, goals
create unifying path.

Establishes Commitment

"Commitment" is a common synonym for "goal." Locke and Latham indicated

that without a clear, quantified goal, you have no firm commitment to
accomplish something. A salesperson without a target sales volume has no
commitment to sell with intensity, for instance. With a stated quota, you have
a commitment to yourself as well as your sales manager. Goal-setting theory
indicates that a commitment drives accomplished-motivated people to persist
though obstacles. You also avoid the potential for falling into a "comfort zone,"
which happens when you have no outstanding commitments.
Drives Planning and Feedback

Goals create the impetus for strategic planning and task assignments.
Managers rely on goals to divide up work in their departments. Each team and
employee is assigned a particular role in which he must achieve job goals,
while also contributing to shared team and organizational goals. The goal-
setting theory also notes that you need specific goals to evaluate progress.
Having no goals is akin to driving without a destination. In a career, you
wander aimlessly with no sense of direction. As workers and departments
progress toward goals, evaluations allow for communication and plan
modification when necessary.

Goal-Setting Theory Obstacles

A primary reason people avoid setting goals is that they put pressure on them
to perform. Thus, the same compulsion to act that Locke and Latham noted
achievement-driven people have with goals, others perceive as stress and
fear. Tunnel vision with goals may also cause a person or group to miss
opportunities that pop up, or the need to veer in a new direction because of a
serious threat. Setting goals also takes time, which causes some
organizations, leaders and employees to avoid them.

https://www.notesformba.com/topic/goal-setting-theory-characteristics-advantages-limitations/

Advantages, Characteristics and Limitations of Goal Setting

Theory
Goal Setting Theory
Goals must to be precise enough to response the, who, what, when, where, why, and how of any
opportunities of the goal. Employees achieve better when given particular goals than they do when given
inexplicit or nonconcrete goals. The specificity of the goal now deeds as an internal incentive, and the
stockroom worker has a specific objective to attain. One public approach is SMART goals. SMART stands
for specific, measurable, achievable, realistic, and time-bound.
In 1960’s, Edwin Locke proposed the Goal Setting Theory of motivation. This theory defines that goal
setting is fundamentally linked to task performance. It states that exact and stimulating goals along with
suitable feedback add to higher and better task performance.

In modest words, goals specify and give way to an employee about what needs to be done and how
much efforts are required to be put in.

Characteristics of Goal Setting Theory

Some important characteristics of Goal Setting Theory are:

Specific and Clear

Specific and clear goals results in to greater production and better performance. Definite, measurable and
clear goals attended by a deadline for completion avoids misunderstanding.

Realistic and Challenging

Goals should be realistic and challenging. This provides an individual a sensation of vanity and triumph
when he reaches them, and sets him up for accomplishment of next goal. The more challenging the goal,
the greater is the reward generally and the more is the passion for achieving it.

Feedback
Improved and suitable feedback of outcomes directs the employee behavior and donates to higher
presentation than lack of feedback. Feedback is a means of gaining reputation, making explanations and
modifiable goal hitches. It helps employees to work with more participation and leads to greater job
satisfaction.

Employees Participation
Employees participation in goal is not always needed. Participation of setting goal, however, makes goal
more suitable and results to more involvement. Goal setting theory has certain eventualities such as:

Self-Efficiency
Self-efficiency is the individual’s self-confidence and confidence that he has talent of execution the task.
Higher the level of self-efficiency, greater will be the energies put in by the individual when they face
challenging tasks. While, lower the level of self-efficiency, less will be the efforts put in by the individual or
he might even quit while meeting challenges.
Goal Commitment
Goal setting theory accepts that the individual is loyal to the goal and will not leave the goal. The goal
obligation is dependent on the following factors:

 Goals are made open, known and broadcasted.

 Goals should be set-self by individual rather than designated.
 Individual’s set goals should be consistent with the organizational goals and vision.

Advantages of Goal Setting Theory

 Goal setting theory is a practice used to increase motivations for employees to complete work
swiftly and effectually.
 Goal setting leads to better presentation by increasing motivation and efforts, but also through
increasing and refining the feedback quality.

Limitations of Goal Setting Theory

 At times, the organizational goals are in conflict with the managerial goals. Goal conflict has a
detrimental effect on the performance if it motivates incompatible action drift.
 Very difficult and complex goals stimulate riskier behavior.
 If the employee lacks skills and competencies to perform actions essential for goal, then the goal-
setting can fail and lead to undermining of performance.
 There is no evidence to prove that goal-setting improves job satisfaction.

https://smallbusiness.chron.com/negative-side-goalsetting-theory-74687.html

The Negative Side of Goal-Setting Theory

 Small Business

 Managing Employees
 |

 Goal Setting

BySteve Lander

Locke's Theory

Dr. Edwin Locke first published his goal setting theory in 1968. In it, he posited that
employees work more productively when guided by clear and achievable goals and
when given feedback that relates to the goals. Working with Dr. Gary Latham, he
came up with five definitions of what a goal should be. According to Locke and
Latham, goals should be clearly measurable as well as challenging enough that
accomplishing them means something. While goals don't have to be set by
employees, they're more likely to be achieved when employees are committed to them
and when managers provide regular progress reports and feedback, which should be
easy to do with measurable goals. Finally, the managers should match the complexity
of the task in the goal both to the worker and to the position. Ultimately, the goals exist
to help the employee know how to succeed.

The Wrong Goals

One of the challenges in goal-setting is that the focus it brings can create a sense of
tunnel vision. For instance, when Coca-Cola set the goal of reformulating their
signature cola to make it sweeter and more competitive with Pepsi, the company's
focus on that goal trumped researching whether or not customers wanted the product
to change. As a result of this, the release of New Coke in 1985 remains one of the
greatest product failures in history. While a focus on goals doesn't always lead to
spectacular failures, it can also lead to employees abandoning more mundane, but still
necessary, tasks as they focus on the "one big thing."

Incentivizing Bad Behavior

In companies that set aggressive goals, sometimes referred to as "stretch" goals,

employees can take the desire to achieve the goal too far. Given the desire to earn the
rewards for achieving the goal and avoid the sanctions for not hitting it, employees
may engage in unethical behavior to reach their targets. Over the long run, this
behavior can harm the organization.

Stretching Too Far

One study shows that setting goals that are too aggressive can backfire. Over time, if
employees continually fail to hit their goals, their performance can decline.
Furthermore, as reported in the Financial Post, only 10 percent of stretch goals ever
get hit. Part of the problem underlying this is that the structure of the human brain
works against achieving audacious goals. For many people, the fear of failure is a
more potent de-motivator than the desire for gain is a motivator. This can lead workers
to shrink away from engaging with stretch goals to avoid feeling like a failure.