Impact of Goal Setting Theory on Organizational Behavior

Goal Setting Theory (GST) incorporates a planned strategy, specific and timed to achieve objectives to enhance the organization’s productivity. According to Chetty, the theory concept is based on the outcome of setting specific aims for successive performance. GST asserts that specified and demanding targets accompanied with assessment contribute significantly to better performance in an organization (Chetty, 2019). The behavior in an organization is always a picture of the institution’s objectives. The stakeholders in any group are moved and motivated if they are towards a specific point. Therefore, the behavior in an organization is related to the set plans, which direct employees’ actions towards performance after knowledge of the commitment required.

Setting targets is a crucial way advocated by public institutions and governmental organizations to encourage behavior change. The government has specifically been vocal about it because most government employees take advantage of the “free” shared resources. That is why most government institutions, including public schools, have developed work performance contracts renewed upon meeting objectives outlined in the lesson plan. A goal measures the objective and purpose of an action. GST has been utilized in various disciplines, including education, athletics, healthcare, interpersonal interactions, and labor activities, to aid individuals in regulating their behavior. In athletics, players set targets in every marathon event ahead of them. Having a well-articulated point plan is a standard method of behavior modification: It was the third most regularly used method in a recent study of treatments to enhance physical activity, with a third of the therapies including a goal-setting measure (Gkizani & Galanakis, 2022). It is a field where GST can be practically and quantitatively measured because as athletes train, they can freely measure their performance and predict their future effectiveness.

Workers are more likely to meet plans they set than those established by the top executives. Consequently, the desired outcomes are vulnerable to a variety of limitations. Most challenging and unachievable ambitions go unacknowledged. Simple goals have little effect on employee commitment or productivity. Nevertheless, a similar outcome includes several challenging targets that personnel rejects because of the perception that they are unreasonable. Then, approaches for enhancing employee productivity include support materials such as prizes, promotions, and comments (Gkizani & Galanakis, 2022). Workers receive an assessment to see if their contributions and conduct add to the desired results, which can act as a drive to work more. In cases where the stakeholders have not met the laid down objectives of the company, most companies adopt training and mentorship programs aimed at helping workers in difficult situations; hence, eventually, the institutional dreams are realized.

A practical aim energizes and excites personnel. It is congruent with the group’s principles, aspirations, and competitive assets. Successful goal formulation promotes cohesive activity in line with the business’s mission and vision. Whenever workers face a tough assignment, it motivates them to deliver their all rather than just devising techniques for one challenging success factor. Such a shift in perspective increases productivity because targets make employees desperate to achieve the best, causing them to hunt for innovative ideas. This desperate move could lead to assessment stress and pressure to perform, which to an extent, works for the organization’s gain. Thus, in conjunction with the performance appraisal system, GST positively influences organizational productivity (Chetty, 2019).

The application of GS theory in large and small companies is nearly the same. The distinction is that employee engagement in the objective formulation is often not desired in a more prominent company. Again, setting targets needs long-term, challenging, and minute-by-minute plans. Besides, determining which goal to focus on is also required. Shorter timelines need attention on the present moment rather than the reason for completing the task, and doing this wrong may hinder flow and rob planners of the energy they need to attain their dreams. Therefore, GST awakens employees’ capabilities to work more, having goals as a challenge before them. Consequently, the goals shape the behavior of employees to that of hard work and focus.


Chetty, P. (2019). Goal-setting theory and performance management system. Knowledge Tank; Project Guru.

Gkizani, A., & Galanakis, M. (2022). Goal Setting Theory in Contemporary Businesses: A Systematic Review. Scientific Research Publishing.

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