As a manager, what will you need to know about goal-setting theory as a motivational tool?

In the 1960s, Edwin Locke came up with the goal-setting theory of motivation. This theory states that goal setting is linked to task performance. It says that specific and challenging goals, along with appropriate feedback, contribute to higher and better task performance.

In simple words, goals describe what needs to be done and how much effort must be put in.

The essential elements of the goal-setting theory are as follows:

• The willingness to work towards the goal is the primary source of job motivation. Clear, particular and challenging goals are more significant motivating factors than simple, general and vague goals.

• Specific and clear goals lead to better performance. Clear and measurable goals followed by a deadline will avoid misunderstanding.

• Goals should be realistic and challenging as it gives one a feeling of pride when once achieved, and sets up for accomplishment of next goal. The harder the goal, the bigger the reward and the more the enthusiasm for achieving it.

• Better feedback influences employee behaviour and contributes to better performance than the lack of feedback. Feedback is a means of growing reputation, making clarifications and adjusting goal difficulties. It helps employees to work with more engagement and leads to higher job satisfaction.

• Employees' participation in setting a goal makes it more acceptable and leads to more involvement from them.

Setting vague goals will not lead to increased motivation. Examples of vague goals include:

• "Do your best."
• "Be better at your job than the rest of the crew."
• "Finish your assignment to the best of your ability."

Goal-setting theory has several possible outcomes, such as:

Self-efficiency: The individual's self-confidence that they have the potential of performing the task. The higher the level of self-efficiency, the greater the efforts put in by the person when they face challenging tasks. 

Goal commitment: Goal-setting theory implies that the individual is committed to the goal and won't leave the goal. The goal commitment depends on these factors:

• Goals are made open, known and announced.
• Goals should be set-self by the person rather than delegated.
• The person's set goals should be compatible with the organisational goals and vision.

The pros of goal-setting theory

• Goal-setting theory is a method used to raise incentives for workers to finish work quickly and effectively.

• Goal-setting leads to better performance by increasing motivation and improving feedback quality.

The cons of goal-setting theory

• Sometimes, the organisational goals conflict with organisational goals. Goal conflict harms the performance if it motivates incompatible action drift.

• Challenging and complex goals stimulate riskier behaviour.

• Suppose the employee lacks skills and competencies to perform actions essential for goal. In that case, the goal-setting can fail and lead to the undermining of performance.

• There is no data to prove that goal-setting improves job satisfaction.

The main takeaway from the Goal-Setting Theory is that goal-setting when done right can be an impactful tool for improving motivation and productivity.

This applies when you are setting personal goals, as well as team goals. By using the Goal-Setting Theory you can keep your team, and yourself, productive and motivated.

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Sources: Expert Program Management & Management Study Guide

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What is Goal-Setting Theory?

Goal-setting theory of motivation states that specific and challenging goals, along with appropriate feedback, contribute to higher and better task performance.

Goals indicate and give direction to an employee about what needs to be done and how much effort is required to be put in. In the 1960s, Edwin Locke put forward the goal-setting theory of motivation. The theory states that goal setting is essentially linked to task performance.

In the goal-setting theory, goals must be set based on 5 principles. To motivate, goals must have these.

7 Goal-Setting Theory Principles

7 principles of goal setting theory are;

1. Clarity
2. Challenge
3. Commitment
4. Feedback
5. Task Complexity
6. Self-Efficiency
7. Goal Commitment

Let’s look at each of these in detail.

1. Clarity

Clear goals are measurable and unambiguous.

When a goal is dear and specific, with a definite time set for completion, there is less misunderstanding about what behaviors will be rewarded.

“Reduce job turnover by 15%” or “Respond to employee suggestions within 48 hours” are examples of dear goals.

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 drive to get it done.

If an assignment is easy and not viewed as very important – and if you or your employee doesn’t expect the accomplishment to be significant – then the effort may not be impressive.

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 participative management rests on involving employees in setting goals and making decisions.

4. Feedback

In addition to selecting the correct type of goal, 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 how they’re doing for themselves.

5. Task Complexity

The last factor in the 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.

6. Self-Efficiency

Self-efficiency is the individual’s self-confidence and faith that he has potential.

When a person performs a task, the higher the level of self-efficiency, the greater the efforts will be in 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.

7. Goal Commitment

The goal-setting theory assumes that the individual is committed to the goal and will not leave the goal. The goal commitment is dependent on the following factors:

• Goals are made open, known, and broadcasted.
• Goals should be set-self by individuals rather than designated.

The individual’s set should be consistent with organizational goals and vision.

Features of Goal Setting Theory

1. The willingness to work towards the attainment of the goal is the main source of job motivation. Clear, particular, and difficult goals are greater motivating factors than easy, general, and vague goals.
2. Specific and clear goals lead to greater output and better performance. Unambiguous, measurable, and clear goals accompanied by a deadline for completion avoid misunderstanding.
3. Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains them and sets him up for the attainment of the next goal. The more challenging the goal, the greater the reward generally, and the more is the passion for achieving it.
4. Better and appropriate feedback on results directs the employee behavior and contributes to higher performance than an absence of feedback. Feedback is a means of gaining reputation, making clarifications, and regulating goal difficulties. It helps employees to work with more involvement and leads to greater job satisfaction.
5. Employees’ participation in goals is not always desirable. Participation in setting the goal, however, makes the goal more acceptable and leads to more involvement.

Advantages of Goal Setting Theory

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

Limitations of Goal Setting theory

1. At times, the organizational goals conflict 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. If the employee lacks the skills and competencies to perform actions essential for the goal, the goal-setting can fail and undermine performance.
4. There is no evidence to prove that goal-setting improves job satisfaction.

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