Key Principles of Goal Setting Theory

key principles of goal
setting theory

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Q1.....................................................................................................................................................3
key principles of goal setting theory...........................................................................................3
Analysis of the Case Study with evidence of the Principles of goal-setting...............................4
Q2.....................................................................................................................................................5
Wells Fargo’s performance management system.......................................................................5
Performance appraisal and review process.................................................................................6
Reward system............................................................................................................................6
Disciplinary process....................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In this report an explanation on the key principles of goal setting theory are provided with
the evidence of goal setting and is used to enhance employees performance from the reference to
given case study. Further, methods from which Wells Fargo's performance management system
eliminate fraudulent practices are discussed.
MAIN BODY
Q1.
key principles of goal setting theory
Setting goals helps a person to motivate and success. If the goals are clearly defined it
becomes easy for a person to focus on a defined target and it will help in to create a direction.
The goal setting theory is propounded by the two psychologists, Edwin Locke and Gary Latham.
They both studied on the human behaviour and define assumptions on these behaviours that
leads in goal-setting theory. Both psychologists have observed that humans set goals that provide
motivation and serve as a performance drivers. The effectiveness is effected by 3 aspects i.e.
proximity, difficulty and specifics. It had been observed that the more difficult and specific the
goal is people work harder to achieve that goal. In a study, it had been found out that the mostly
specific and challenging goals results in the increase in the performance (Racene, 2017). Both
Locke and Latham together outline 5 key principles of goal-setting viz. Clarity, Challenge,
Commitment, Task complexities and Feedback. Also, there is a framework that based on these 5
principles known as the SMART goal-setting framework that helps in the achievement of goals.
It is given by Prof. Robert Rubin. He defined SMART as:
Specific: The goal that is set must be specific and simplified.
Measurable: it helps in to track the progress.
Achievable: the goals so defined must be realistic and possible to achieve.
Relevant: the goal that is set, must be providing some relevance and aligns to the objectives.
Time bound: fixing time of the goals helps to focus on the goals and helps achieve goals within
the described period (Müller and et.al, 2020).