GOAL SETTING THEORY: Definition, How To Use It, Pros and Cons

GOAL SETTING THEORY
Photo Credit: canva.com

By goal-setting theory, productivity can be increased by defining explicit, quantifiable goals. You can boost employee engagement while also enhancing employee performance in the workplace by implementing goal-setting theory. In this article, we go over the goal-setting theory by Locke, its motivation, its guiding principles, how to apply the SMART theory, and its intended usage.

What is Goal-Setting Theory?

Goal-setting theory holds that setting clear goals is less successful than goals that are explicit and measurable. This idea was created by Edwin A. Locke in 1968 for his article titled “Toward a Theory of Task Motivation and Incentive.” In this article, Locke demonstrated how explicit and quantifiable goals increase employee motivation and increase the likelihood that these goals will be attained.

Locke emphasized the need for clear goals as well as the notion that employees perform best when given difficult tasks. As a result of working hard and honing their talents to complete these more challenging targets, employees are rewarded with praise and a sense of accomplishment. As a result, there may be an increase in worker happiness, productivity, and engagement.

The Purpose Of Goal-Setting Theory

Understanding the relationship between how goal-setting affects work motivation and performance is the fundamental aim of goal-setting theory. From there, individuals and groups can make use of this knowledge to support workers in achieving their objectives with more ease.

How Goal-Setting Theory Works

Let’s rapidly discuss goal-setting operations now that you are aware of what it is. According to goal-setting theory, performance and motivation are driven by different kinds of goals. And at what point do employers realize that? They may make sure that their goal-setting process sets their staff up for success. It’s easy, yet it has the potential to be powerful.

Goal Setting Theory by Locke

Our current understanding of goal setting is a result of Locke’s groundbreaking study on motivation and goal setting theory in the late 1960s. He demonstrated in his 1968 paper, “Toward a Theory of Task Motivation and Incentives,” that employees are motivated by specific objectives and helpful criticism. He continued by emphasizing that achieving a goal is another important source of motivation, which enhances performance.

According to Locke’s research, people prefer to work more to obtain goals that are more challenging and specialized.
Locke examined ten years’ worth of laboratory and field research on the relationship between goal-setting theory and performance in one study. He discovered that 90% of the time, setting precise, difficult-yet-reasonable goals resulted in better performance than setting general goals.

As opposed to saying, “Try to get more than 80% correct” or “Concentrate on beating your best time,” saying, “Try to get more than 80 percent correct” is more successful. A goal that is too simple is also unmotivating. Because it seems more like an accomplishment to achieve something you’ve worked hard for, challenging goals are more inspiring than easy ones.

Dr. Gary Latham researched the effects of goal-setting theory in the workplace a few years after Locke wrote his article. His findings confirmed Locke’s, according to which goal-setting and job performance are inextricably linked.

A Theory of Goal Setting & Task Performance, by Locke and Latham, was published in 1990. In addition to laying out five other qualities for effective goal setting, they emphasized the necessity of setting detailed and challenging goals in this book.

Locke and Latham’s Five Principles of Goal Setting Theory

Five principles of goal-setting theory, according to Locke and Latham, can increase our chances of success:

  • Clarity.
  • Challenge.
  • Commitment.
  • Feedback.
  • Task complexity.

Principles of Goal Setting

As previously established, the goal-setting theory contends that for objectives to be successful, they must be both challenging and precise. However, Locke & Latham elaborated on that idea by identifying five essential principles for successful goal-setting theory.

#1. Clarity

You must be very clear about your goal, as we have already stated and will do so again. You may be familiar with the SMART goal framework. Clarity involves mastering the SMART acronym’s first two letters, specific and measurable.

Let’s examine a case in point. Maybe you’re the manager of your company’s customer service department, and your goal is to provide better customer service. How does that appear? Make your request more explicit by saying something like, “Reduce response time on a customer service ticket to 24 hours or less.”

#2. Challenge

A goal must be challenging but not completely out of reach to be truly motivating. Make sure you’re at least slightly straining yourself as you work on establishing your goal, but not to the point where you risk setting yourself up for failure.

For instance, you could want to push yourself a little harder and change your goal to 20 hours if you look at your current customer service insights and see that your average wait time for a response is already only 25 hours.

Who says the celebration has to wait till the end? Reward yourself and your team for each significant advancement to maintain the momentum. Take the group out to happy hour once you’ve worked for 22 hours.

#3. Commitment

Put a ring on it if you want it. In other words, you must commit to it if you want to celebrate reaching your goal.

How? Well, the incentives we’ve already discussed can undoubtedly keep you and your staff motivated. Breaking large undertakings into manageable chunks may be helpful when the finish line and rewards seem so far away. In this manner, your successes come more quickly, and you are more likely to feel proud of your job. This can assist you and the team in sustaining their commitment over the long term.

Involving your team in the initial goal-setting process can also be beneficial. Getting their perspectives will not only help you create goals that are more specific and helpful, but it will also increase their motivation and sense of commitment to the task at hand.

#4. Feedback

Everybody is familiar with projects where the finish line is constantly shifting. Even though people rarely keep their objectives a secret, constructive criticism is not always guaranteed. Plan accordingly. Plan routine check-in sessions (either as a group or one-on-one) to provide your team members feedback and recognition for reaching team-wide goals.

Establish occasions to check in with yourself and assess your progress toward your specific goals (perhaps when you complete those minor milestones you established). Consider how you could be making even more significant progress during this period.

#5. Task complexity

Recall our advice to “set yourself up for success”? It was all about setting challenging yet realistic goals that would help you push yourself. More advice: avoid making things complicated.

Keep your objectives concise. Instead of having your team focus on achieving greater customer feedback scores and five-star company reviews, choose one primary goal to strive toward, such as cutting down on customer wait times.

Check your timelines while you’re at it. Are they plausible? Do you and your squad have the abilities and means necessary to accomplish your objective? If not, it could be time to hire more people, outsource some of the work, or provide opportunities for education and professional growth.

Smart Goal Setting Theory

Specific, Measurable, Achievable, Relevant, and Time-Bound goals are often known as SMART goals.
By defining these parameters about your goal, you can be sure that your goals can be attained in a set amount of time. This method removes generalizations and hunches, establishes a precise timeframe, and makes it simpler to monitor progress and spot missing milestones.

How to Write SMART Goal Setting Theory

Let’s go over each element while keeping Jane’s goal in mind.

S: Specific

A goal must be specific to be successful. A specific objective responds to issues like:

  • What needs to be accomplished?
  • Who’s responsible for it?
  • What steps need to be taken to achieve it?

These questions can help you clarify your goals by getting at their core.

M: Measurable

While being specific is a good place to start, having your goals quantifiable (i.e., making sure they’re measurable) will make it simpler to monitor your progress and determine when you’ve succeeded.

How much do Jane and her product team want to increase the number of users of their mobile app? Does it mean they’re finished if they obtain even one new enrollment, which is technically positive growth? The same applies to their advertising strategy: how many platforms will they use?

A: Achievable

At this stage of the procedure, you should give yourself a sobering reality check. Goals should be attainable rather than lofty ideals that you will inevitably fall from. Consider this: Is your team reasonably capable of achieving your goal?

When Jane considers her objective, she may see that, given the size of her team and their extensive schedule, developing ad campaigns for four social media platforms might be asking too much of them. She chooses to focus only on the three social networks where she has the most chance of attracting new customers.

R: Relevant

You need to consider the big picture at this point. Why have you chosen the goal you have selected?

Jane is aware that the app is a significant factor in customer loyalty and that an increase in app usage might have a significant impact on the company’s sales targets. She now amends her statement to take this into account.

T: Time-bound

You and your team must agree on the definition of success to measure it effectively. What is the span of your time? When will the group begin developing and carrying out the tasks they have identified? How soon will they be done?

Time-related elements should be incorporated into SMART goals so that everyone is aware of how to stay on track within a given time limit.

The Importance of SMART Goal Setting Theory

Frequently, people and companies will set themselves up for failure by establishing broad and unattainable goals like “I want to be the best at X.” This objective lacks direction and is nebulous.

By making your goals specific, measurable, attainable, realistic, and time-bound, SMART goals position you for success. The SMART method encourages you to go further, provides you with a feeling of purpose, and you in organizing and achieving your goals.

How to Use Goal-Setting Theory in the Workplace

You can implement the goal-setting theory in the workplace in several ways. These actions comprise:

#1. Determine the purpose of the goal

A goal should be set for several reasons. For instance, a worker might have to learn new computer software to do their duties. If your firm has recently implemented a new system that will be utilized by all employees, defining goals would be the best method to guarantee that each person understands the system.

#2. Consult with the worker

Arrange a meeting to discuss the needs for goal-setting with a single employee for whom a goal is being set. Ask the employee whether they believe the objective is necessary and make sure they are aware of their roles in achieving the goal. During this time, you can also let the employee know when their progress will be checked in the future.

#3. Create a strategy utilizing the SMART approach.

Setting and achieving goals is made easier with the help of the SMART approach. The words SMART, stand for specific, measurable, aggressive, realistic, and time-bound.

#4. Ascertain that the worker has everything necessary to complete the task.

You should make sure the employee has the tools, time, and resources necessary to complete the goal before they begin working toward it. Before the employee starts working toward the goal, have a meeting with them and find out if they have access to what they need. If not, give it to them.

#5. Offer frequent feedback

Meet with the employee frequently to review their action plan, assess their progress, and talk about the outcomes. When a worker accomplishes a goal, give them encouraging and gratifying comments. Discuss any adjustments that need to be made and offer helpful criticism on how the staff may do better if they weren’t able to complete the task by the deadline.

What Is an Example of Locke’s Goal-Setting Theory?

Establish precise goals with measurable criteria. “Reduce job turnover by 15%,” for instance. List the measures you’ll use to gauge the effectiveness of your team members.

What Is the Goal-Setting Theory of Locke and Latham?

According to Locke and Latham’s goal-setting theory, companies can increase employee productivity by giving them clear, measurable goals.

What Are the Three Main Components of Goal-Setting Theory?

Motivation, commitment, and self-regulation are the three interconnected components of goal-setting theory.

What Are the Four Components of Goal-Setting Theory?

Goals must contain specificity, commitment, difficulty, and feedback to motivate.

What Are the 7 Cs of Goal Setting?

The following is what Tom Morris refers to as “The Seven C’s of Success”: a clear idea of what we want, a firm confidence that we can get it, concentration on what it will take to get it, consistent in pursuing it, an emotional commitment to its value, and good character that leads us on the journey.

What Is the Golden Rule for Goal Setting?

Share your goals with others by writing them down. Keep operational goals specific and manageable. Be sensible. Create an action plan and execute it.

Conclusion

Goal setting theory is a well-known framework in organizational psychology that suggests that defining specific, challenging goals can boost both individual and group performance and motivation.

According to this idea, goals ought to be SMART (specific, measurable, achievable, relevant, and time-bound) and in line with the values and priorities of the individual or organization. The need for feedback and self-evaluation in reaching goals is also emphasized by goal-setting theory.

References

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like