Business Basics

Goal-setting theory

  • Created by Henry Stewart Talks
Published on September 30, 2025   3 min

A selection of talks on Management, Leadership & Organisation

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Goal-Setting Theory is one of the most influential frameworks for understanding motivation and performance in organisational settings. Developed primarily by Edwin Locke and Gary Latham, this theory highlights the critical role that clear and challenging goals have on driving performance. Instead of relying on vague ambitions, setting specific, measurable, and time-bound targets encourages individuals to focus their attention, sustain effort, and develop strategies for success. In business, healthcare, education, and personal development, thoughtfully established goals have proven to be a powerful tool for enhancing achievement and engagement. At the heart of Goal-Setting Theory are several key principles. Firstly, goals should be specific—there is a substantial difference between “do your best” and “increase sales by fifteen percent in the next quarter.” Challenging goals, compared to easy ones, tend to drive higher performance, as long as they remain attainable. Commitment is vital too; individuals are more motivated to pursue goals they are truly invested in. Feedback is another pillar, enabling people to track their progress, adjust their actions, and stay motivated. Lastly, task complexity plays a role, as more complex tasks may require breaking goals into smaller steps and providing additional support to ensure sustained progress. Effective application of Goal-Setting Theory in organisations involves collaboratively setting goals that align with organisational strategy and personal development,

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