Goal setting theory proposes that setting specific, challenging yet realistic goals improves employee performance and motivation. Goals should be clear, involve employee commitment, provide regular feedback, and break large tasks into smaller sub-goals. However, goal setting has limitations if goals conflict, are too complex, the employee lacks skills, or does not improve job satisfaction.

1. Theory of Motivation
Goal setting

2. • Clarity. A goal must be specific and clear.
• Challenge. An easy or tedious goal is demotivating.
But keep a realistic balance: don’t expect anyone on
your team to spin straw into gold.
• Commitment. Your employees have to understand
and buy in to the goal from the outset.
• Feedback. Provide regular feedback throughout the
whole process. This helps to keep the goal on track.
• Task complexity. Think about realistic timescales,
and break down the process into sub-goals with
regular reviews.
Locke and Latham’s five principles of effective goal setting

3. • Goal setting theory is a technique used to raise
incentives for employees to complete work quickly
and effectively.
• Goal setting leads to better performance by
increasing motivation and efforts, but also through
increasing and improving the feedback quality.
Advantages of Goal Setting Theory

4. • At times, the organizational goals are in conflict with the
managerial goals. Goal conflict has a detrimental effect
on the performance if it motivates incompatible action
drift.
• Very difficult and complex goals stimulate riskier
behaviour.
• If the employee lacks skills and competencies to perform
actions essential for goal, then the goal-setting can fail
and lead to undermining of performance.
• There is no evidence to prove that goal-setting improves
job satisfaction.
•
Limitations of Goal Setting Theory

5. Thank you