Goal-setting

Goal-setting theory was formulated based on empirical research and has been called one of the most important theories in organizational psychology. Edwin A. Locke and Gary P. Latham, the fathers of goal-setting theory, provided a comprehensive review of the core findings of the theory in 2002. In summary, Locke and Latham found that specific, difficult goals lead to higher performance than either easy goals or instructions to "do your best", as long as feedback about progress is provided, the person is committed to the goal, and the person has the ability and knowledge to perform the task.

According to Locke and Latham, goals affect performance in the following ways:

1.    goals direct attention and effort toward goal-relevant activities,

2.    difficult goals lead to greater effort,

3.    goals increase persistence, with difficult goals prolonging effort, and

4.    goals indirectly lead to arousal, and to discovery and use of task-relevant knowledge and strategies.

A positive relationship between goals and performance depends on several factors. First, the goal must be considered important and the individual must be committed. Participative goal setting can help increase performance, but participation itself does not directly improve performance.Self-efficacy also enhances goal commitment. For goals to be effective, people need feedback that details their progress in relation to their goal.