Goal Theory

Edwin Lockeproposed Goal Theory in 1968, which proposes that motivation and performance will be high if individuals are set specific goals which are challenging, but accepted, and where feedback is given on performance.

The two most important findings of this theory are:

1. Setting specific goals (e.g. I want to earn a million before I am 30) generates higher levels of performance than setting general goals (e.g. I want to earn a lot of money).

2. The goals that are hard to achieve are linearly and positively connected to performance. The harder the goal, the more a person will work to reach it.

Adams’ Equity Theory

Developed by John Stacey Adams in 1963, Equity Theory suggests that if the individual perceives that the rewards received are equitable, that is, fair or just in comparison with those received by others in similar positions in or outside the organization, then the individual feels satisfied. Adams asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others.