2. What is the Goal Setting
theory ?
• Goal Setting involves establishing specific,measureable,
achievable,realistic and time targeted goals.
• Theory of goal-setting is an effective tool for making
progress because participants in a group/organisation with
a common goal are clearly aware of what is expected
from them.
• Goal setting features as a major component of personal
development literature.
3. Who’s behind this theory ?
• This Theory was established by Edwin A.Locke.
• Edwin A. Locke began to examine goal setting in the
mid-1960s ,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
individual activity of its time performance.
5. What does it do ?
Setting goals affects outcomes in four ways:-
• Choice: goals narrow attention and direct efforts to goal-
relevant activities.
• Effort: goals can lead to more effort.
• Persistence: someone becomes more prone to work
through setbacks if pursuing a goal.
• Cognition: goals can lead individuals to develop and
change their behavior.
6. Goal setting in business
• In business, goal setting encourages participants to put in
substantial effort.
• Goal setting is an important tool for managers, because
goals have the ability to function as a self-regulatory
mechanism that helps employees prioritize tasks.
7. Seven Golden steps for Goal
Setting in Business
Identify
Goals
Set
Objectives
List
Obstacles
Identify
people
List skillsDevelop
a Plan
List
Benefits
8. How can goal setting affect
individual performances?
The 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.
9. Real examples of goal setting
from the Corporate World
• Carlos Ghosn , the C.E.O of Nissan ,
set the very ambitious goal of selling
3.6 million cars in 2005. This
verifiable goal was widely publicized.
• Employees were identified with this
clear goal and were motivated to its
achievement. Indeed, the goal was
achieved, partly by introducing new
models, the Murano and Fuga in the
market.
• Because of this leadership at Nissan,
Ghosn has been considered heading
an alliance between Japanese Nissan,
French Renault, and American
General Motors.
10. Effective steps to F.R.A.M.E
you’re goals
Turn your fantasies into goals.
Work effectively to turn fantasies
into goals
set realistic goals by balancing
fantasy and reality.
Decide the ways you want to
accomplish you’re goals.
Review your progress towards
achieving you’re goals.
11. Guidelines for setting goals
effectively
• Set Priorities: Prioritize your goals if you’ve got too
many of them to achieve.
• Set realistic goals: Set the goals that you can achieve
• Be Precise: Set precise goals ,i.e., by deciding date, time
and amount in order to measure achievement of that goal.
12. The goal Setting Model
(S.M.A.R.T.)
Specific
Measureable
Attainable
Relevant
Time bound
13. Limitations to Goal Setting
theory
• Due to non alignment of goals between the employees
and the organization, the performance of employees gets
affected.
• Goal setting can foster unethical behavior when people
do not achieve specified goals.
• Goal setting may encourage simple focus on an outcome
without openness to exploration, understanding, or
growth
