Goal setting theory Locke and Lathams

Principle

Summary 

How it Motivates

Clarity

• Goals should be specific and easy to measure 

• Employees should be able to clearly understand what’s expected of them

• Employees are motivated to work towards tasks as they know exactly what to do 

Commitment 

• Employees should be involved in setting their goals 

• Goals should incorporate the personal interests of employees

• Employees are involved in setting goals, so are more likely to work towards achieving them, as they’re interested in them

Challenge 

• The goal should be difficult enough to encourage employees to improve in order to achieve it 

• Employees are motivated by learning and expanding their skills, and also meeting their goals

Complexity

• This goal should not overwhelm employees and should be achievable 

• Employees should receive adequate training to achieve their goals, if needed

• Employees are motivated by the increased sense of accomplishment when achieving pre-set milestones of tasks whilst working towards the goal

Feedback

• Managers should provide regular support to employees and adjust goals as needed

• Managers should monitor the progress of employees to keep them on track, clarify misunderstandings, and encourage them

• Employees are motivated as they feel supported to achieve their goals and know they can adjust timelines or goals if necessary. 

Advantages

Disadvantages

Setting goals will motivate employees to improve their performance, and as a result, increase achievement of business objectives.

Setting goals that are too vague can lead to poor performance and can become demotivating 

Staff will perform at a higher standard due to the clear/specific goals, leading to higher productivity

Individual employee goals may clash with each other, or with business objectives

There will be a better relationship between management and employees as managers work with employees to set goals and support achievement.

Employees may focus too strongly on achievement of their own goals and forget other aspects of their jobs

As goals are specific, it is not time-consuming to measure if goals have been met/achieved

Failing to meet a goal may reduce employee confidence and future achievement