What is goal setting and how it affects performance?

 Goal setting is a process intended to increase efficiency and effectiveness by specifying the desired outcomes toward which individuals, departments, teams, and organizations should work. The goal-setting model developed emphasizes the challenges provided for the individual: goal difficulty, goal clarity, and self-efficacy. 

Setting difficult but clear and achievable goals for individuals who believe that they have the ability to complete their tasks leads to high performance. Four moderators—ability, goal commitment, feedback, and task complexity—influence the strength of the relationship between challenging goals and performance. If the individual has the ability, is committed to the goal, and is given feedback on progress toward achievement of the goal—and if the task is complex—high performance will result. 

All four moderators must be present to motivate a person to achieve goals. Four mediators—direction, effort, persistence, and task strategy—facilitate goal attainment. That is, these four characteristics channel or focus the person’s motivational efforts. Performance, rewards, satisfaction, and consequences complete the model.

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