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About Business Basics
Business Basics are AI-generated explanations prepared with access to the complete collection, human-reviewed prior to publication. Short and simple, covering business fundamentals.
Topics Covered
- Goal-Setting Theory Overview
- Key Principles of Goal-Setting
- Organisational Goal Alignment
- SMART Framework for Goal-Setting
- Importance of Feedback and Reviews
- Drawbacks of Poor Goal Design
- Best Practices for Goal-Setting
Talk Citation
(2025, September 30). Goal-setting theory [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved September 30, 2025, from https://doi.org/10.69645/JNRZ5899.Export Citation (RIS)
Publication History
- Published on September 30, 2025
Transcript
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0:00
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,