Fundamentals of Management, 8th ed

Goal-Setting Theory

The goal-setting theory of motivation assumes that behavior is a result of conscious goals

and intentions.

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Therefore, by setting goals for people in the organization, a manager

should be able to influence their behavior. Given this premise, the challenge is to develop a

thorough understanding of the processes by which people set goals and then work to reach

them. In the original version of goal-setting theory, two specific goal characteristics—goal

difficulty and goal specificity—were expected to shape performance.

equity theory

Contends that people

are motivated to seek

social equity in the

rewards they receive

for performance