Goal-Setting Theory

Have you ever been asked: “Where do you see yourself five years from now?” This question is so commonplace that it has become somewhat of a cliché in our society. The notion that each of us ought to have some vision for the future is deeply ingrained in our collective psyche. Why is this the case?

The “where do you see yourself” question is closely linked with the idea of goal setting. A goal can be thought of as a future state so appealing that it motivates actions today. Goals are widely accepted as powerful tools to help us get what we want out of life. This belief is so powerful that we often assume everyone has, or should have, goals. Workplaces enforce goal-setting in employees’ performance reviews, coaches encourage their athletes to set goals, and guidance counsellors help students set goals for educational attainment.

Although goals are encountered everywhere, not all goals are created equal. Some people seem capable of achieving their goals with ease, while others may struggle and even fail to achieve their goals. To better understand both why goal setting is important and how it can work to improve our lives, we are going to turn our attention to Goal-Setting Theory.

Goal-setting theory states that goals are strongly associated with human performance. Goal-setting provides both a ‘target’ to work towards as well as a standard by which to evaluate performance.

The theory identifies the attributes of effective goals as well as the specific ‘mechanisms’ through which goals help enhance performance. Goals can improve performance by focusing our attention (direction) and regulating the amount of time (duration) and effort (intensity) spent working towards an outcome. When paired with goal-setting, feedback and training in self-regulation can further enhance performance.

Research has consistently shown that specific and difficult (but not too difficult) goals are more helpful than vague ‘Do your best!’ goals. An individual must be committed to achieving a goal in order for the goal to be an effective tool.

The theory explains how factors known as ‘moderators’ can interact with goal-setting to impact performance. Moderators include an individual’s skill or ability; her belief in her ability to achieve the goal (self-efficacy); the anticipated level of satisfaction associated with achieving the goal (valence); and the degree to which a goal is seen as an effective means to an end (instrumentality).

Goal-setting theory might bring to mind the popular S.M.A.R.T acronym – Specific, Measurable, Attainable, Relevant, and Time-Bound. In fact, the S.M.A.R.T model predates Goal-setting theory, having been introduced by Doran, Miller, and Cunninghan in a 1981 article titled “There’s a S.M.A.R.T. way to write management goals and objectives.”

Goal-setting theory was first formally introduced in 1990 by Gary Latham of the University of Toronto and Edwin Locke of the University of Maryland. In their book A Theory of Goal Setting & Task Performance, Latham and Locke integrated decades worth of research into a single coherent theory explaining how goal-setting works to motivate human performance.