Management of Organizational Behavior: Goal Setting Theory Review

This literature review delves into the conceptualization and significance of goal-setting theory within organizational behavior. It explores how goals, defined as conscious pursuits, influence employee actions, motivation, and organizational performance. The review highlights the differences between goal setting and Management by Objectives (MBO) and Organizational Citizenship Behavior (OCB), providing a comparative analysis of their impacts. It examines the factors affecting goal setting, including goal hierarchy, integration, and abstraction, along with the outcomes of setting both individual and group goals. The review also addresses the limitations of current research and suggests directions for future studies, including research questions focused on self-management, information sharing, and task complexity. References to key research papers are also included.

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Management of Organizational
Behavior

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Literature Review
Conceptualization of Goal Setting
Conception of Goal Setting Theory
The terminology of goal is identified with other terms and concepts like tasks, purpose, aim,
ends and objectives and is considered as the regulator of different actions. Goal setting
activity in an organizational context reflects on directing employees to achieve a set of
common objectives and business with also institutional goals such that the same contributes
in generating needed competitive advantage. Goal setting is also identified as a formal
process for identifying and generating quantitative goals for organizational members and also
in motivating them for improvement of business and institutional productivity. Goal setting is
also considered in synchronizing the personal goals of individual employees for effective
meeting of organizational goals (Choon & Patrick, 2016).
The Goal Setting Theory of Motivation is essentially constituted by two different cognitive
behavioral determinants identified as values and goals or intentions. The goal is identified as
that activity that is being consciously pursued by an individual. Personal values however
govern the mindset of an individual to act on such tasks that ideally appeal to them. Focusing
and meeting of goals demand needed attention and direction from the individuals. Further,
the fulfillment of goals demands the employment of further energy and thereby contributes in
driving greater effort. It also creates an urge for the development of potential strategies.
Failure in meeting goals leads to the emergence of pessimistic behavior and thereby affects
one’s motivation (Lunenburg, 2011). The model for Goal-Setting Theory is reflected as
follows.

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(Lunenburg, 2011)
Significance of Goal Setting
Goal setting ideally contributes in driving one’s attention and synergies in meeting of specific
objectives for accomplishment of an identified and targeted goal. Further, goal setting
behavior in organizations also contributes in energizing people to act as individuals or as
groups for fulfillment of defined objectives. Energized individuals in turn would focus on the
undertaking and meeting of challenging tasks rather than accomplishing easy goals (Landers,
Bauer, & Callan, 2015). Again, goals that are bound by tight deadlines require the team
members to work in a synergistic fashion and with needed rapidity than goals with longer
deadlines. This requires the organizational management to allocate urgent projects and tasks
unto groups for its steady meeting within the specified time limit. Finally, setting and
identification of desired goals and objectives requires individuals to both employ and enhance
their existing skills and knowledge pursuits. The same contributes in generating greater
productivity (Hoek, Groeneveld, & Kuipers, 2016).
Differences between Goals Setting with MBO
MBO or Management by Objectives focuses on the generation of multiple objectives that
essentially associate to diverse set of business and institutional tasks. On the contrary, in Goal
Setting the identification and establishment of stated goals and objectives encourage the
formulation of managerial decisions for allocating effective resources and expertise in
meeting of stated goals and objectives. Goal Setting activities in the organization are

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evaluated to act in a top-down manner owing to the movement of directions and decisions
from the management or supervisory level to the subordinates. On the contrary, objective and
goal setting in MBO acts in both ‘top down’ and ‘bottom up’ fashion where feedbacks and
suggestions rendered by subordinates are incorporated for decision making purposes
(Zellweger, Nason, & Nordqvist, 2011).
Differences between Goals Setting with Organizational Citizenship
Organizational Citizenship unlike the Goal Setting theory is identified as the discretionary
behavior of organizational members where the performances of the employees are not
essentially influenced by the existence of potential rewards. The employees reflecting greater
amount of Organizational Citizenship Behavior (OCB) ideally contribute in developing ideal
social and psychological environment for the meeting of business and organizational
objectives. Similarly, employees with higher amount of OCB also contribute in coaching,
assisting and encouraging their colleagues and subordinates for the effective accomplishment
of departmental and institutional goals. The existence of greater amount of OCB in a business
organization rightly helps in enhancing the level of attractiveness of the workplace in the
accomplishment of diverse and complex tasks (Bolino, Hsiung, & Harvey, 2015).
Antecedents and Consequences of Goal Setting
Factors Affecting Goal Setting
The factors that affect the goal setting activities in an institution are highlighted as follows in
the below illustration.

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(Boudrenghien, Frenay, Bourgeois, Karabenick, & Eccles, 2014)
The significance in meeting a goal is in turn influenced by the position the goal lies within
the goal hierarchy of an individual or group. The position of the goal within the hierarchy is
further determined two factors like level of integration and abstraction. Integration and
abstraction factors potentially influence the commitment levels of individuals or groups in
ascertaining and in accomplishing of organizational goals. The importance adhered in
meeting a goal however mediates the degree of integration and also the abstraction level
associated to the goals. Thus, importance rendered in meeting a specific or desired goal in
turn influences the level of commitment of the individual or group for meeting of the same.
Here, the degree of integration for a specific goal is determined in terms of relation of the
goal to other goals in the individual’s goal hierarchy. Thus, focusing on meeting of an
integrated goal rightly contributes in meeting of other goals along higher or on the lower side
of the goal hierarchy (Boudrenghien, Frenay, Bourgeois, Karabenick, & Eccles, 2014).
Again, the same also reflects that pursuing of other related goals would also accrue in
meeting of the integrated goal/objective. Thus, goal importance is enhanced in terms of the
goal’s linkage with other goals or objectives (Boudrenghien, Bourgeois, & Karabenick,
2012).
Here, the degree or level of abstraction associated to the goal identified as higher or lower
level of abstraction is potentially identified as those goals the meeting of such indicates on
the personality type and that which focuses on accomplishing a specific kind of task
respectively. Goals with higher level of abstraction are generally long-term in nature and are

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identified as ‘be-goals’ while the latter being of a particular type are time bound in nature and
thus identified as ‘do-goals’ (Boudrenghien, Frenay, Bourgeois, Karabenick, & Eccles,
2014).
Outcomes of Goal Setting
The identification and setting of both individual and group goals with also the generation of
effective clarity to the roles to be played by individuals within a team setting ideally
contributes in generating greater performances and productivity for the organization as a
whole. Clarity of roles and objectives associated with the goals is however not considered
enough in generating needed performances. It also requires the elaboration of information
regarding the tasks to be accomplished from the higher management and the benefits adhered
to such to the group members (Welsh & Ordóñez, 2014). Further, generation of needed
knowledge and expertise is required to be rendered in the form of off and on-the-job training
for enhancing the individual efficiency and expertise of the individuals for augmenting
institutional productivity. Similarly, Self-Management exercises are required to be involved
whereby individuals can focus on prioritizing tasks depending on urgency and also enhancing
one’s own potential for undertaking challenging tasks. The same is reflected in the following
illustration.

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(Hoek, Groeneveld, & Kuipers, 2016)
Further analysis reflects that the level of complexity associated to goal identification and
setting affects the level of accomplishment of both group and institutional goals. However,
the diverse existences of different goals do not affect the attainment or meeting of different
goals. It thereby reflects that alternations in the level of prioritization of group or
organizational goals do not affect the attainment of such (MAWRITZ, FOLGER, &
LATHAM, 2014).
Directions for Future Research
Theoretical and Empirical Limitations
The analysis of the outcomes of goal setting highlight the existence of potential limitations
that contribute in generating a base for future research activities associated to the concept and
theory of goal setting. Further research is welcomed for understanding the relation between
self management activities of individuals in group or institutionalized settings with that of
prioritizing and meeting of different goals. It would also require understanding the manner in
which self management activities can generate needed efficiency and effectiveness in
meeting of departmental and institutional goals (Locke & Latham, 2006).
The research activity also earns limitation in understanding the effective modes through
which potential information can be exchanged or communicated between individuals
involved along different organizational levels for meeting of set goals. Effective research can
also be made as to understanding and evaluating the type of information needed for
enhancing individual and group expertise for potential accomplishment of business and
organizational goal.
Similarly, further research also needs to be carried out in understanding the fashion in which
the level of complexity associated to the different tasks can be rightly simplified for helping
the individuals and group members in meeting of set objectives or tasks (Mann, Ridder, &
Fujita, 2013).

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Important Research Questions
An understanding of the future research directions rightly encourages the development of
potential research questions.
 What activities enable effective self-management and how potential self-management
activities contribute in accomplishment of set goals?
 What are the effective modes of sharing of information between individuals operating
in an organizational setting and the manner of identifying different types of
information that contribute in employee growth and effectiveness for meeting of set
goals?
 How can the level of complexity of tasks be simplified for accomplishment of
organizational goals?
References
Bolino, M. C., Hsiung, H.-H., & Harvey, J. (2015). “Well, I’m Tired of Tryin’!”
Organizational Citizenship Behavior and Citizenship Fatigue. Journal of Applied
Psychology , 100 (1), 56-74.
Boudrenghien, G., Bourgeois, E., & Karabenick, S. A. (2012). Antecedents of Educational
Goal Commitment: An Experimental lnvestigation of the Role of Goal Abstraction,
Integration, and Importance. The Canadian Journal of Career Development , 11 (1),
18-26.
Boudrenghien, G., Frenay, M., Bourgeois, E., Karabenick, S. A., & Eccles, J. S. (2014). A
Theoretical Model of the Antecedents of Educational Goal Commitment. The
Canadian Journal of Career Development , 13 (1), 60-69.
Choon, T., & Patrick, K. C. (2016). The Impact of Goal Setting on Employee Effectiveness to
Improve Organisation Effectiveness: Empirical study of a High-Tech Company in
Singapore. Journal of Business & Economic Policy , 3 (1), 82-97.
Hoek, M. v., Groeneveld, S., & Kuipers, B. (2016). Goal Setting in Teams: Goal Clarity and
Team Performance in the Public Sector . Review of Public Personnel Administration ,
1-22.

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Landers, R. N., Bauer, K. N., & Callan, R. C. (2015). Gamification of task performance with
leaderboards: A goal setting experiment. Computers in Human Behavior , 30, 1-8.
Locke, E. A., & Latham, G. P. (2006). New Directions in Goal-Setting Theory. Association
for Psychological Science , 15 (5), 265-268.
Lunenburg, F. C. (2011). Goal-Setting Theory of Motivation. INTERNATIONAL JOURNAL
OF MANAGEMENT, BUSINESS, AND ADMINISTRATION , 15 (1), 1-6.
Mann, T., Ridder, D. d., & Fujita, K. (2013). Self-Regulation of Health Behavior: Social
Psychological Approaches to Goal Setting and Goal Striving. Health Psychology , 32
(5), 487-498.
MAWRITZ, M. B., FOLGER, R., & LATHAM, G. P. (2014). Supervisors’ exceedingly
difficult goals and abusive supervision: The mediating effects of hindrance stress,
anger, and anxiety. Journal of Organizational Behavior , 35, 358-372.
Welsh, D. T., & Ordóñez, L. D. (2014). The dark side of consecutive high performance goals:
Linking goal setting, depletion, and unethical behavior. Organizational Behavior and
Human Decision Processes , 123, 79-89.
Zellweger, T. M., Nason, R. S., & Nordqvist, M. (2011). Why Do Family Forms Strive for
Nonfinancial Goals? An Organizational Identity Perspective . Entrepreneurship
Theory amnd Practice , 1-20.

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