P.

hD 2nd Semester “Management Theories” Qurtuba University Hayatabad Peshawar

Goal Setting Theory

(Edwin Lock and Gary Latham 1990)

 Life is a process of goal-directed action.

 This applies both to the vegetative level (e.g., one’s internal organs) and to the level of
purposeful choice
 The conscious mind is the active part of one’s psychology;

 One has the power to volitionally focus one’s mind at the conceptual level.

 Volition gives one the power to consciously regulate one’s thinking and thereby one’s actions.

 Goal setting theory rests on the premise that goal-directedness is an essential attribute of human
action and that conscious self-regulation of action, though volitional, is the norm.

 We do not deny the existence of the subconscious nor its power to affect action.

 Subconscious is essential to survival.

 The subconscious operates automatically and serves to store knowledge and skills which are
needed in everyday action.

 The subconscious is routinely activated by our conscious purposes and also determines our
emotional responses.

 Goal setting theory explains how well people perform work tasks.

 It focuses on conscious performance goals, i.e., human action at work is consciously directed.

Features of Goal Setting Theory

1. Core findings. The core of goal setting theory asserts that performance goals lead to the
highest level of performance when they are both clear (specific) and difficult.
 Specific, hard goals lead to higher performance than easy or vague goals, such as trying to ‘‘do
your best.
P.hD 2nd Semester “Management Theories” Qurtuba University Hayatabad Peshawar

2. Mediators of goal effects.

Goal effects are mediated most directly by three relatively automatized mechanisms:
(a) Focus of attention on the desired end State to the exclusion of other goals,
(b) Regulation of physical as well as cognitive effort in proportion to what is required
to attain the goal,
(c) Persistence of effort through time until the goal is attained.
 The role of a fourth mediator, task knowledge or skill, is more vital.

 A goal cannot be attained unless the individual knows how to do so.

3. Moderators.

 Goal effects are moderated by at least four factors.

(i). People need feedback regarding their progress in order to see if they are ‘‘on target.’’

 This allows adjustments in level of effort, and may imply the need for modifying their task
strategy.

(ii). For goals to be effective, people must be committed to them, they must be ‘‘real’’ goals.

 Commitment is especially important when goals are difficult.

 This is because hard goals require great effort, and failure and discouragement are more likely
than is the case when easy goals are set.

 Commitment is highest when people have confidence in being able to reach their goal and believe
the goal to be important or appropriate.

 These two factors also affect goal choice.

Goal commitment

 There are numerous ways to generate goal commitment, e.g., assignment and supportiveness by a
respected leader,
P.hD 2nd Semester “Management Theories” Qurtuba University Hayatabad Peshawar

 Affirming the goal in public so as to make it a test of integrity, clarifying outcome expectancies,
incentives.

(iii) The beneficial effects of goal setting are stronger with simple, straightforward tasks than with
tasks that are complex for people.

(iv) Goal attainment is adversely affected by situational constraints.

4. Satisfaction.
 Goals are at the same time outcomes to attain and standards for judging one’s
accomplishments.

 People are more satisfied when they attain their goals or make meaningful progress
toward them, than when they fail, or make little or no progress.

5. Goals (and self-efficacy)

 Goals (and self-efficacy) may serve as mediators of external incentives and personality.

 Performance goals are situational specific tasks.

 They are more immediate determinants of performance than are indirect or general
determinants.

 Self-set goals, along with self-efficacy have been found to mediate the effects of assigned goals,
feedback, participation, monetary incentives, job enrichment, leadership, and personality
variables, particularly conscientiousness, on performance.

 Self-efficacy is the extent or strength of one's belief in one's own ability to complete tasks
and reach goals.

Psychologist Albert Bandura has defined self-efficacy as one's belief in one's ability to succeed in

specific situations.
 One's sense of self-efficacy can play a major role in how one approaches goals, tasks, and
challenges.
P.hD 2nd Semester “Management Theories” Qurtuba University Hayatabad Peshawar

  The theory of self-efficacy lies at the center of Bandura’s social cognitive theory, which
emphasizes the role of observational learning and social experience in the development of
personality.

 People generally avoid tasks where self-efficacy is low, but undertake tasks where self-
efficacy is high.

 When self-efficacy is significantly beyond actual ability, it leads to an overestimation of

the ability to complete tasks. On the other hand, when self-efficacy is significantly lower
than actual ability, it discourages growth and skill development.

 Research shows that the optimum level of self-efficacy is slightly above ability; in this
situation, people are most encouraged to tackle challenging tasks and gain experience.

6. Levels of analysis.
 Goals have been found to affect performance at the individual, group, organizational unit, and
organizational levels.

Goals conflict

 Goals could sometimes be in conflict.

 Intra-individual goal conflict undermined performance.

 Team members’ personal goal(s) could be in conflict with those of a work team

 High personal goals that are compatible with the group’s goal of maximizing performance
enhances group performance.

 Personal goals that conflicted with group goals had a detrimental effect on the group’s
performance.