Latham, G. P., & Locke, E. A. (1991). Self-regulation through goal setting. Organizational behavior and human decision processes, 50(2), 212-247.
Summary
A goal is a desired outcome. Two attributes of goals are content and intensity. Content has two dimensions, specificity (from vague to specific) and difficulty (from easy to impossible). Setting more difficult goals results in higher performance (goals must still be achievable, goals that are impossible will generate impossible performance). Setting more specific goals also results in higher performance (“do your best” is a vague and ineffective goal). These seem to be true cross-culturally. Additionally, specific goals seem to minimize performance variance.
Intensity relates to the “scope, clarity, mental effort, etc., involved in a mental process).” The most important element of intensity is commitment. Commitment measures how important a goal is to an individual, and their willingness to persist in achieving it. Unintuitively, “assigning people goals, accompanied by a rationale, leads to as high a level of goal commitment as having people participate in the setting of their goals.” Being supportive is also listed as a key component to successful goal achievement when prescribing goals. Subordinates normally see goals assigned by their boss as legitimate. Two factors seem to enhance commitment: 1) convincing people that goal achievement is possible (strongly related to todo:insert Bandura link theory of self-efficacy) and 2) convincing them that the goal is important. Sometimes, simply assigning a goal is a sign of trust and boosts employee self-efficacy. Salancik (todo: insert link) said that commitment is enhanced when decisions are volitional, public, and irrevocable.
Feedback only increases performance when it is usable in setting improvement goals. Together, goals and feedback are more effective than either singly. Feedback can signal that a performance is acceptable and thereby demotivate improvement. Therefore, incremental improvement should always be aimed for (as in the Japanese concept of kaizen).
Ideal goals find a balance between maximizing productivity (by setting difficult goals) and maximizing satisfaction (by fulfilling easy goals). One way to achieve this is by rewarding partial goal attainment. Multilevel rewards can also be used (e.g., a normal goal and a stretch goal, with correspondingly-sized rewards).
Performance can also be improved by training employees in self-management. Steps in self-management include: identifying (specific) obstacles to goal achievement, brainstorming solutions to these obstacles, setting specific developmental goals, self-monitoring progress in implementing solutions and in achieving developmental goals, and self-rewarding (or self-disciplining).
Proximal goals are more effective than distal goals. Proximal goals can be used to progress towards a distal goal. Proximal goals cause people to think through a task sooner. Reaching proximal goals can increase self-efficacy (interestingly, “people who reached the same level of performance without knowing that they had achieved a proximal goal showed no increase in their self-efficacy” - seems to be an artifact of framing). Assigning proximal goals allows for additional points of satisfaction. Finally, proximal goals cause increased persistence when compared with distal goals.
Applicability
The authors list five tasks that leaders can do to be effective. First, develop a vision that gives employees a purpose and a distal goal. Set proximal goals that will guide employees to implement the vision. Model problem-solving and taking action. Be accessible to employees - listen to both their ideas and concerns. Finally, measure progress and give feedback.
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