Role of goal setting theory in

employee motivation

Name : Pawan Rohidas

Roll no: 732
Industrial Organizational psychology
Motivation
Workers in any organization need something to keep them working. An employee
must be motivated to work for a company or organization. If no motivation is
present in an employee, then that employee’s quality of work or all work in
general will deteriorate.
Mc Farland has defined
“motivation as the way in which urges, drives, desires, aspirations, strivings
needs direct, control or explain the behavior of human beings”.

Importance of Motivation
 High level of performance  Acceptance of organization change
 Low employee turn over and  Organizational image
absenteeism
Model of Motivation
o Motive is a strong need which has a certain
degree of strength that propels a person to act
for its fulfillment.

o If the need or motive is not fulfilled a person

remains restless and when fulfilled a person
enjoys a certain degree of satisfaction.

o Certain amount of tension is harbored by a

person when need exists

o If incentives for accomplishing are given, the person is more enthusiastic for its implementation.
o The performance will result in the individual getting the desired reward Thus, need for (reward or outcome)
is satisfied & tension is reduced
o New needs will emerge in due time, and the entire process will be repeated.

o Greater the motive, greater is the tension and higher the desire to fulfill. A high degree of satisfaction is
experienced by an individual once the desire is fulfilled.
 The basis of the Goal setting theory
 The theory emphasizes the important relationship between goals and
performance.
 The theory of motivation that has been the most useful for I/O psychologists is
goal setting theory (Locke & Latham, 1990).
 a goal is what a person consciously wants to attain or achieve. Goals can be
specific, such as “receive an ‘A’ on the next exam,” or general, such as “do well in
school.”
 Research supports predictions that the most effective performance seems to result
when goals are specific and challenging, when they are used to evaluate
performance and linked to feedback on results and create commitment and
acceptance.
 The general model of
the theory

• According to the theory, there

appear to be two cognitive
determinants of behavior: values
and intentions (goals).
• Locke and Latham postulate that
the form in which one experiences
one’s value judgments is emotional.
That is, one’s values create a desire
to do things consistent with them
• For Locke and Latham, goals,
therefore, direct attention and
action.
• Furthermore, challenging goals
mobilize energy, lead to higher
effort, and increase persistent effort.
 Goals and work motivation
o Managers widely accept goal setting as a means to improve and sustain performance

o Based on hundreds of studies, the major finding of goal setting is that individuals who are
provided with specific, difficult but attainable goals perform better than those given easy,
nonspecific, or no goals at all.

o At the same time, however, the individuals must have sufficient ability, accept the goals,
and receive feedback related to performance.

o From an organizational standpoint, goal setting can be an effective means of maintaining or

increasing job performance, and many organizations have used goal setting to do so.
According to Locke (2000)
  Goals have a pervasive influence on employee
behavior and performance in organizations
and management practice.
 Nearly every modern organization has some
form of goal setting in operation. Programs
The link to modern
such as management by objectives (MBO),
organizations. high-performance work practices (HPWPs) and
management information systems (MIS).
 Benchmarking, stretch targets, as well as
systems thinking and strategic planning,
include the development of specific goals.
The effect of goal setting on
employees

1. goals direct attention and actions to behavior that the person believes
will achieve the goal

2. A goal causes people to compare their present capacity to perform with

what is required to succeed in getting to the goal.

3. A gap between the two makes clear exactly what type and level of
efforts is expected to bridge the gap

4. It provides feedback about how much has been achieved and whether
the efforts are to be accelerated to reach the goal
 Limitations to the theory
The theory of goal-setting has certain flaws.

 In an organisation, a manager's goal may or may not fit with the organization's
overall goals. In such instances, an individual's aims may be in direct conflict with
those of the employing institution.

 Very difficult and complex goals stimulate riskier behavior.

 Performance may suffer if organizational and personal goals are not aligned.
Furthermore, goal-setting may actually hamper performance for difficult jobs.

 If the employee lacks skills and competencies to perform actions essential for goal,
then the goal-setting can fail and lead to an undermining of performance.
Factors necessary to improve job performance
 Clarity
Clear goals are measurable and unambiguous. When a goal is dear and specific, with a
definite time set for completion, there is less misunderstanding about what behaviors
will be rewarded.
Asking organization members to improve, to work harder, or to do your best is not
helpful, because that kind of goal does not give them a focused target. Specific goals
(often quantified) let organization members know what to reach for and allow them to
measure their own progress.
 Challenging
A goal that is too easily attained will not bring about the desired increments in
performance, in order to improve performance, a goal must be both challenging and
specialized. People are often motivated by achievement, and they’ll judge a goal based on
the significance of the anticipated accomplishment.
If the goal is easy and not viewed as important and if the employee doesn’t expect a big
reward, the performance is not remarkable
 Goals Must Be Accepted
Goals must be understood and agreed upon if they are to be effective. Employees are more
likely to “buy into” a goal if they feel they were part of creating that goal. A powerful
method of obtaining acceptance is to allow organization members to participate in the
goal-setting process. In other words, participation in the goal-setting process tends to
enhance goal commitment. The notion of participative management rests on this idea of
involving employees in setting goals and making decisions. Participation helps
organization members better understand the goals, ensure that the goals are not
unreasonable, and helps them achieve the goal.

 Feedback Must Be Provided on Goal Attainment

Feedback helps organization members attain their performance goals. Feedback helps in
two important ways. In addition to selecting the right type of goal, an effective goal
program must also include feedback. Feedback provides opportunities to clarify
expectations, adjust goal difficulty, and gain recognition. Feedback also helps people
determine the nature of the adjustments to their performance that are required to improve.
 Goals Are More Effective When They Are Used to Evaluate Performance
When employees know that their performance will be evaluated in terms of how
well they attained their goals, the impact of goals increases. Salespeople, for example,
have weekly and monthly sales goals they are expected to attain.

 Task complexity
The last factor in the goal-setting theory introduces two more requirements for
success. For goals or assignments that are highly complex, take special care to ensure
that the work doesn’t become too overwhelming.

 Deadlines Improve the Effectiveness of Goals

For most employees, goals are more effective when they include a deadline for
completion. Being aware that a deadline is approaching, the typical employee will
invest more effort into completing the task. In contrast, if plenty of time remains for
attaining the goal, the employee is likely to slow down his or her pace to fill the
available time.
 A Learning Goal Orientation Leads to Higher Performance than a Performance
Goal Orientation
A person with a learning goal orientation wants to develop competence by mastering challenging
situations. In contrast, the person with a performance goal orientation wants to demonstrate and
validate competence by seeking favorable judgments. Considerable research has indicated that a
learning goal orientation has a positive impact on work-related behaviors and performance.
The learning goal orientation is particularly relevant in today’s work environment, which requires
employees to be proactive, problem solve, be creative and open to new ideas, and adapt to new
and changing situations (Luthans, 2011).

 Group Goal-Setting is As Important As Individual Goal-Setting

Today, many members of organizations operate in groups, teams, or committees. Working as a
team with a particular team goal, rather than as individuals with merely individual ambitions,
boosts productivity. Furthermore, combining compatible group and individual goals is more
effective than pursuing either individual or group goals on its own. A similar point to consider is
that when a team member believes that other team members share his or her own goals, the
individual is more fulfilled and productive.
References
https://www.academia.edu/36739565/Organizational_Behaviour_book

https://static1.squarespace.com/static/5b0b8f55365f02045e1ecaa5/t/
5b14d215758d46f9851858d1/1528091160453/Lunenburg%2C+Fred+C.+Goal-
Setting+Theoryof+Motivation+IJMBA+V15+N1+2011.pdf

https://psychology.fandom.com/wiki/Employee_motivation

https://psychology.fandom.com/wiki/Goal_setting#cite_ref-1

https://www.iedunote.com/goal-setting-theory