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Goal setting involves the development of an action plan designed to motivate and guide a person or group toward a goal. Goal setting can be guided by goal-setting criteria (or rules) such as SMART criteria. Goal setting is a major component of personal-development and management literature.
Studies by Edwin A. Locke and his colleagues have shown that more specific and ambitious goals lead to more performance improvement than easy or general goals. As long as the person accepts the goal, has the ability to attain it, and does not have conflicting goals, there is a positive linear relationship between goal difficulty and task performance.
People perform better when they are committed to achieving certain goals. Through an understanding of the effect of goal setting on individual performance, organizations are able to use goal setting to benefit organizational performance. Locke and Latham (2002) have indicated three moderators that indicate goal setting success:
1. The importance of the expected outcomes of goal attainment,
2. Self-efficacy: one's belief that they are able to achieve the goals,
3. Commitment to others: promises or engagements to others can strongly improve commitment.
Expanding the three from above, the level of commitment is influenced by external factors. Such as the person assigning the goal, setting the standard for the person to achieve/perform. This influences the level of commitment by how compliant the individual is with the one assigning the goal. An external factor can also be the role models of the individual. Say if they strive to be like their favorite athlete, the individual is more likely to put forth more effort to their own work and goals.
Internal factors can derive from their participation level in the work to achieve the goal. What they expect from themselves can either flourish their success, or destroy it. Also, the individual may want to appear superior to their peers or competitors. They want to achieve the goal the best and be known for it. The self-reward of accomplishing a goal, is usually one of the main keys that keep individuals committed.
