Applying Goal-Setting Theory to Real-World Organizations

¶ … Locke's Goal-Setting Theory

Most people want and need to know what is expected of them in the workplace, and Locke (1964) proposed that goal-setting theory can help explain why. Subsequently, Locke (1996) conceptualized goals as being the objective or purpose that serves to guide individual actions at work (Perrone & Smith, 2003). The main points of Locke's goal-setting theory are as follows:

Specific high goals lead to higher performance than setting no goals or setting an abstract goal such as "do your best";

There is a linear relationship between goal difficulty and performance and the higher the goal the higher the performance; and,

Factors such as feedback, participation in decision making, and competition only affect performance to the extent that they lead to the setting of and commitment to specific high goals (Latham, 2001, p. 1).

According to Latham, "Three of the four mediators of the goal setting performance relationship are motivational, namely direction, effort, and persistence; the fourth is cognitive, namely, task strategies" (2001, p. 2). The effects of goals on performance are further moderated by individual ability, commitment, feedback, task complexity, and situational constraints (Latham, 2001). In this regard, Baird and Tempest (2010) report that, "Feedback holds two main functions: the primary role is to regulate the effort expended on a goal but there is also a role to evaluate the efficacy of the strategies" (p. 374).

The goal setting theory conceptualized Locke (1996) was based on the tenets of management and work performance and held that goal setting serves to regulate behavior and enhance performance (Perrone & Smith, 2003). Pursuant to goal-setting theory, when people believe that goals are important and attainable, they demonstrate the highest level of commitment to goals (Perrone & Smith, 2003). Indeed, Curran and Reivich (2011) report that the main factors that influence achievement of goals include:

1. Setting difficult but attainable goals;

2. Setting explicit and precise goals;

3. Having a strong commitment to set goals, and,

4. Having the individual belief in the capacity to achieve the goal (self-efficacy), among others.

Likewise, Curran and Reivich (2011) cite the importance of establishing attainable goals that also have importance for the individuals that are involved. In this regard, Curran and Reivich emphasize that, "Noted repeatedly in the literature is the importance of choosing goals that are not only important to the individual but also that he or she is capable of reaching" (p. 2).