Goal Setting Theory

Goal Setting Theory was First introduced by the Edwin Locke in 1960’s. This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance. Thus Goal setting involves the development of an action plan designed to motivate and guide a person or group toward reach their goals.

Principles of Goal Setting Theory

Goal setting theory

There are 5 principles of goal setting theory They are:

  1. Clarity.
  2. Challenge.
  3. Commitment.
  4. Feedback.
  5. Task Complexity.

1. Clarity

Clear goals are measurable and unambiguous. When a goal is set and specified, with that employees and management should be clarity. Like what they are planning and what they are want to achieve. For that goal time set for completion.

2. Challenge

One of the most important characteristics of goals is the level of challenge. People are often motivated by achievement, and they’ll judge a goal based on the significance of the anticipated accomplishment.

Rewards typically increase for more difficult goals. If you believe you’ll be well compensated or otherwise rewarded for achieving a challenging goal that will boost your enthusiasm and your drive to get it done.

3. Commitment

Goals must be understood and agreed upon if they are to be effective. Employees are more likely to “buy into” a goal if they feel they were part of creating that goal. The notion of participation management rests on this idea of involving employees in setting goals and making decisions.

4. Feedback

An effective goal program must also include feedback. Feedback provides opportunities to clarify expectations, adjust goal difficulty, and gain recognition. It’s important to provide benchmark opportunities or targets, so individuals can determine for themselves how they’re doing.

5. Task complexity

The last thing in goal setting theory introduces two more requirements for success. For goals or assignments that are highly complex, take special care to ensure that the work doesn’t become too overwhelming. Goal setting theory has certain eventualities such as Self-efficiency and Goal commitment.

Advantages of Goal Setting Theory

  1. It is a technique used to raise incentives for employees to complete work quickly effectively.
  2. It leads to better performance by increasing motivation and efforts and also increasing and improving the feedback quality.

Limitations of Goal Setting Theory

  1. Most of the organizational goals are conflicted with the managerial goals. Goal conflict has a detrimental effect on the performance if it motivates incompatible action drift.
  2. Very difficult and complex goals stimulate riskier behavior.
  3. There is no evidence to prove that goal-setting improves job satisfaction.