Theory Of Goal Setting

Introduction

The theory of goal setting was developed by Edward Locke and Gary Latham (1990) and states that there is a direct relationship between the setting of specific high goals and task performance. A higher degree of employee performance is obtained when specific goals are set compared to the performance achieved when employees are simply told to do their best (Latham & Locke, 2007). These findings have helped shape leadership styles and improve employee performance and job satisfaction (Posthuma & Al-Riyami, 2012).

Locke originally introduced the goal-setting theory of motivation in the 1960’s and based his research on previous findings by Ryan and Lewis (Miner, 2015), both psychologists who had studied the impact of intentions and

In addition to feedback, goals have been found to be more effective when they are tied to employee evaluations. The results of employee evaluations typically carry great weight when it comes to raises, bonuses, and potential advancement. Tying these types of rewards to successful goal completion also improves performance and increases goal commitment among employees (House, 1971). Incorporating deadlines to specific goals is also attributed to elevated performance levels. The motivation levels of the employee increase to meet goals within set deadlines and receive positive feedback (Lunenburg, 2011). As organizations focus on employee satisfaction and motivation, goal setting will remain an important aspect of management practices. In today’s economy, organizations are competing for top talent and ensuring employee satisfaction among job tasks is an important piece of talent retention.

Conclusion

The effect of goal setting on employee performance is evident in the studies conducted by Locke and Latham (1990, 2002, 2007). Leaders must develop closer mentorships with employees as they assist in goal setting and goal achievement. This creates a more positive management environment than that of the authoritarian boss. Leaders who lead employees toward challenging, attainable goals will see better performance standards and as well as a higher level of commitment to the organization. This in turn benefits the employees, the leadership, and the