Goal setting


Goal setting involves the development of an action plan designed to motivate and guide a person or group toward a goal. Goal setting can be guided by goal-setting criteria such as SMART criteria. Goal setting is a major component of personal-development and management literature.
Studies by Edwin A. Locke and his colleagues have shown that more specific and ambitious goals lead to more performance improvement than easy or general goals. The goals should be specific, time constrained and difficult. Difficult goals should be set ideally at the 90th percentile of performance assuming that motivation and not ability is limiting attainment of that level of performance. As long as the person accepts the goal, has the ability to attain it, and does not have conflicting goals, there is a positive linear relationship between goal difficulty and task performance.
The theory states that the simplest most direct motivational explanation of why some people perform better than others is because they have different performance goals. The essence of the theory is fourfold. First, difficult specific goals lead to significantly higher performance than easy goals, no goals, or even the setting of an abstract goal such as urging people to do their best. Second, holding ability constant, as this is a theory of motivation, and given that there is goal commitment, the higher the goal the higher the performance. Third, variables such as praise, feedback, or the involvement of people in decision-making only influences behavior to the extent that it leads to the setting of and commitment to a specific difficult goal. Fourth, goal-setting, in addition to affecting the three mechanisms of motivation, namely, choice, effort, and persistence, can also have a cognitive benefit. It can influence choice, effort, and persistence to discover ways to attain the goal.

History

carried out the first empirical studies in 1935.
Edwin A. Locke began to examine goal setting in the mid-1960s and continued researching goal setting for more than 30 years. Locke derived the idea for goal-setting from Aristotle's form of final causality. Aristotle speculated that purpose can cause action; thus, Locke began researching the impact goals have on human activity. Locke developed and refined his goal-setting theory in the 1960s, publishing his first article on the subject, "Toward a Theory of Task Motivation and Incentives", in 1968. This article established the positive relationship between clearly identified goals and performance.

Concept

Goals that are difficult to achieve and specific tend to increase performance more than goals that are not. A goal can be made more specific by:
Setting goals can affect outcomes in four ways:

Goal commitment

People perform better when they are committed to achieving certain goals. Through an understanding of the effect of goal setting on individual performance, organizations are able to use goal setting to benefit organizational performance. In addition, another aspect that goes with goal commitment is also goal acceptance. This is an individuals willingness to pursue their specific goal. Locke and Latham have indicated three moderators that indicate goal setting success:
Expanding the three from above, the level of commitment is influenced by external factors. Such as the person assigning the goal, setting the standard for the person to achieve/perform. This influences the level of commitment by how compliant the individual is with the one assigning the goal. An external factor can also be the role models of the individual. For example, say an individual looks up to their manager and cares about his or her opinion, the individual is more likely to listen to goal-setting strategies from that individual, and ultimately become more committed to their desired goal.
Internal factors can derive from their participation level in the work to achieve the goal. What they expect from themselves can either flourish their success, or destroy it. Also, the individual may want to appear superior to their peers or competitors. They want to achieve the goal the best and be known for it. The self-reward of accomplishing a goal, is usually one of the main keys that keep individuals committed. For example, if an individual was working toward becoming the president of their company, if they achieve their goal, they could reward themselves with something of importance to them.
Another route individuals can take to set their goals is to follow that is, setting their goals to be Specific, Time-bound, and difficult. Specifically, an individuals goal should be set at the 90th percentile of difficulty.

Goal–performance relationship

Locke and colleagues examined the behavioral effects of goal-setting, concluding that 90% of laboratory and field studies involving specific and challenging goals led to higher performance than did easy or no goals. This is because if an individual is intrinsically motivated by a goal, he or she will want to conquer the goal to receive internal rewards, and will be satisfied because of it.
Locke and Latham argue that it is not sufficient to urge employees to "do their best". "Doing one's best" has no external referent, which makes it useless in eliciting specific behavior. To elicit some specific form of behavior from another person, it is important that this person has a clear view of what is expected from him/her. A goal is thereby of vital importance because it helps an individual to focus his or her efforts in a specified direction. In other words, goals canalize behavior.

Feedback

Goal setting can lead to creation of feedback loops, either negative or positive comparison of the output to the goal. Negative feedback loops lead to increasing the input associated with goal attainment to improve output in the next loop cycle. Positive feedback loops if not sufficiently reinforced can lead to subsequent setting of goals at a less difficult level.
Without proper feedback channels it is impossible for employees to adapt or adjust to the required behavior. Managers should keep track of performance to allow employees to see how effective they have been in attaining their goals. Providing feedback on short-term objectives helps to sustain motivation and commitment to the goal. There are two forms of feedback in which the employee can receive. Outcome feedback is after the goal or activity is finished, and process feedback is during the completion of a goal. Feedback should be provided on the strategies followed to achieve the goals and on the final outcomes achieved.

Honing goal setting using temporal motivation theory

Locke and Latham note that goal setting theory lacks "the issue of time perspective". Taking this into consideration, Steel and Konig utilize their temporal motivation theory to account for goal setting's effects, and suggest new hypotheses regarding a pair of its moderators: goal difficulty and proximity. The effectiveness of goal setting can be explained by two aspects of TMT: the principle of diminishing returns and temporal discounting. Similar to the expression "the sum of the parts can be greater than the whole", a division of a project into several, immediate, subgoals appears to take advantage of these two elements.

Employee motivation

The more employees are motivated, the more they are stimulated and interested in accepting goals. These success factors are interdependent. For example, the expected outcomes of goals are positively influenced when employees are involved in the goal setting process. Not only does participation increase commitment in attaining the goals that are set, participation influences self-efficacy as well. Additionally, feedback is necessary to monitor one's progress. When feedback is not present, an employee might think they are not making enough progress. This can reduce self-efficacy and thereby harm the performance outcomes in the long run.

In business

In business, goal setting encourages participants to put in substantial effort. Also, because every member has defined expectations for their role, little room is left for inadequate, marginal effort to go unnoticed.
Managers cannot constantly drive motivation, or keep track of an employee's work on a continuous basis. Goals are therefore an important tool for managers, since goals have the ability to function as a self-regulatory mechanism that helps employees prioritize tasks.
Four mechanisms through which goal setting can affect individual performance are:
  1. Goals focus attention toward goal-relevant activities and away from goal-irrelevant activities.
  2. Goals serve as an energizer: Higher goals induce greater effort, while low goals induce lesser effort.
  3. Goals affect persistence; constraints with regard to resources affect work pace.
  4. Goals activate cognitive knowledge and strategies that help employees cope with the situation at hand.

    In training

Goal setting is used to improve training outcomes. For example, Tomokazu Kishiki and colleagues performed a randomized controlled trial on surgical trainees to determine whether or not their participation in a goal-setting program would improve performance and testing scores; the addition of achievable goals appeared to be beneficial to the trainees. When goal setting is applied optimally during training processes, both employee motivation and organizational commitment can increase.
Furthermore, training in goal setting has been linked to higher levels of performance among adults and children with mild to severe intellectual disability.

In personal life

Common personal goals include losing weight, achieving good grades, and saving money. The strategy for goal setting begins with the big picture; taking a look at the big picture before breaking it into smaller components allows one to focus on the primary goal. Once the main goal is set, breaking it up into smaller, more achievable components helps in the planning portion of setting the goal. These smaller, more obtainable objectives promote self-esteem and provide instant feedback to keep the individual on task.
Time management is the practice of systematically finishing tasks assigned by superiors or one's self in an efficient and timely manner. Time management steps require identifying the objective and laying out a plan that maximizes efficiency and execution of the objective. There are many useful mobile apps that help with personal goal setting; some of the categories include budgeting, wellness, calendar and productivity apps.
The book What They Don't Teach You in the Harvard Business School is known for citing a study which found that written goals have a significant effect on financial success, but in 1996 Fast Company determined that this study did not occur. In 2015, a research study on goals found those who wrote them down accomplished them at a significantly higher rate than those who did not.

Limitations

Goal-setting has limitations. In an organization, a goal of a manager may not align with the goals of the organization as a whole. In such cases, the goals of an individual may come into direct conflict with the employing organization. Without clearly aligning goals between the organization and the individual, overall performance may suffer. Additionally, there is evidence that suggests that goal-setting can foster unethical behavior when people do not achieve their desired goals. Goal setting also may impair performance in certain situations. Such situations include when an individual becomes overly focused on accomplishing a previously-set goal that they end up underperforming on current tasks.
Goal setting may have the drawback of inhibiting implicit learning: goal setting may encourage simple focus on an outcome without openness to exploration, understanding, or growth. A solution to this limitation is to set learning goals as well as performance goals, so that learning is expected as part of the process of reaching goals.

Developments in theory

Goal choice

Self-efficacy, past performance, and various other social factors influence goal setting. Failure to meet previous goals often leads to setting lower goals.

Learning goals

There are times when having specific goals is not a best option; this is the case when the goal requires new skills or knowledge. Tunnel vision is a consequence of specific goals; if a person is too focused on attaining a specific goal, he or she may ignore the need to learn new skills or acquire new information. This concept is illustrated well by the "basketball game task" study in which observers watched a video of a group of people wearing white shirts and black shirts who are passing a basketball back and forth, and the observers were instructed to count the number of times a basketball is passed between only the players wearing white shirts. During the video, a woman carrying an open umbrella walks across the screen. Of 28 observers who were focused on counting the number of passes between only the players wearing white shirts, only 6 reported noticing the woman carrying the umbrella. When observers watched the video without focusing on a specific task, all of the observers noticed the umbrella woman. In situations where the risk of tunnel vision is high, the best option is to set a learning goal. A learning goal is a generalized goal to achieve knowledge in a certain topic or field, but it can ultimately lead to better performance in specific goals related to the learning goals.
Locke and Latham attribute this response to metacognition. They believe that "a learning goal facilitates or enhances metacognition—namely, planning, monitoring, and evaluating progress toward goal attainment". This is necessary in environments with little or no guidance and structure. Although jobs typically have set goals, individual goals and achievement can benefit from metacognition.

Framing

, or how goals are viewed, influences performance. When one feels threatened and or intimidated by a high goal they perform poorer than those who view the goal as a challenge. The framing of a goal as a gain or a loss influences one's eventual performance.

Affect

Realization of goals has an effect on affect—that is, feelings of success and satisfaction. Achieving goals has a positive effect, and failing to meet goals has negative consequences. However, the effect of goals is not exclusive to one realm. Success in one's job can compensate for feelings of failure in one's personal life.

Group goals

The relationship between group goals and individual goals influences group performance; when goals are compatible there is a positive effect, but when goals are incompatible the effects can be detrimental to the group's performance. There is another factor at work in groups, and that is the sharing factor; a positive correlation exists between sharing information within the group and group performance. In the case of group goals, feedback needs to be related to the group, not individuals, in order for it to improve the group's performance.
Goal concordance among members of groups as well as concordance across hierarchies in organizations has positive performance impacts. Research evaluating affects of goals on employee commitment found an indirect relationship mediated by employee perception of organizational support, suggesting that leaders to directly support goal setting by individual employees.

Goals and traits

On a basic level, the two types of goals are learning goals and performance goals; each possesses different traits associated with the selected goal.
Learning goals involve tasks where skills and knowledge can be acquired, whereas performance goals involve easy-to-accomplish tasks that will make one appear successful.
A more complex trait-mediation study is the one conducted by Lee, Sheldon, and Turban, which yielded the following results:
Macro-level goals refer to goal setting that is applied to the company as a whole. Cooperative goals reduce the negative feelings that occur as a result of alliances and the formation of groups. The most common parties involved are the company and its suppliers. The three motivators for macro-level goals are: self-efficacy, growth goals, and organizational vision.

General action and inaction goals

Action goals are believed to promote the sense of action, whereas inaction goals are considered to reduce people's tendency to take actions. Common action goals can be to do something, perform a certain act, or to go someplace, whereas typical inaction goals can take the form of having a rest or to stop doing something.
Goal-regulated overall activity and inactivity tendency result from both biological conditions and social-cultural environment. Recent research revealed that most nations hold more favorable attitude towards action rather than inaction, even though some countries value action and inaction slightly differently than others.
Recent research suggested that people tend to choose inaction goals when they are making decisions among choices where uncertainty could result in negative outcomes, but they prefer action over inaction in their daily behaviors when no deliberation is needed. Timothy D. Wilson and colleagues found that many people "preferred to administer electric shocks to themselves instead of being left alone with their thoughts".