Goal Setting Theory
Goal-setting theory was foreshadowed by Locke in 1968 through the publication of his article “Toward a Theory of Task Motivation and Incentives”.[7] The theory was developed through Locke’s laboratory experiments and the work of Gary Latham, who conducted experiments in organizational settings.[8] The success of early experiments inspired additional studies by numerous other researchers. After several hundred studies had been conducted, Locke and Latham collaborated to develop a formal theory in their 1990 book A Theory of Goal Setting & Task Performance.[9]
The book synthesizes core findings of research published to that point; identifies mediators of the effects of goals (such as attention, effort, and focus) and moderators—conditions required for goals to be effective—such as goal commitment, feedback on progress, expectancy and self-efficacy, and goal mechanisms; discusses goals and affect; and highlights practical applications. The appendices include theoretical extensions and guidelines for experimenters and managers.
Key findings of the theory include: (1) that setting specific (i.e., clear) goals leads to higher performance than setting nonspecific or vague goals, and (2) that goal difficulty is linearly and positively related to performance, such that more difficult goals lead to greater effort, focus, and persistence, resulting in higher performance.[10] As noted above, moderators such as incentives, feedback, commitment, and the availability of resources are proposed to facilitate the influence of goals on performance. The model has generated a large body of empirical research, most of which has supported the theory’s predictions.[11]
Goals are not limited to regulating performance outcomes. They may also be set for behaviors (e.g., improving customer interactions), for selling activities, or for learning and skill development.[10]
In addition, “stretch goals”—goals that are extremely difficult or seemingly unattainable—may be useful provided that failure is not penalized and the emphasis is placed on improvement and learning. Penalizing failure to reach such goals may discourage effort and increase the likelihood of unethical behavior. Locke has emphasized that managers who use goal setting to motivate employees must establish and enforce clear ethical standards. To prevent cheating, especially when stretch goals are assigned, reliable measures of progress and goal attainment are essential.[12]
