While performance goals can significantly increase the effectiveness of individuals and organizations, most organizations “have no idea” how to manage performance goals or determine the right type of goal for a given situation or employee (Seijts & Latham, 2005, p. 124). As a result, many organizations attempt to motivate employees toward increasingly higher productivity by establishing challenging performance goals. However, with challenging goals, leadership fails to provide employees with the guidance, means, or authority to achieve the goals. This leads to distress, underperformance, and unethical behavior (Schweitzer, Ordóñez, & Douma, 2004). Seijts and Latham argued that assigning goals without providing employees with the means to succeed is “both foolish and immoral.”

Ensuring ability and motivation

Even the best-laid goals cannot be reached if the individuals and groups tasked with achieving the goals lack the ability and motivation to accomplish them.

For example, new students in an online classroom may be highly motivated to master the course material and earn a high grade. However, suppose the students struggle with the technology necessary to access the online classroom. In that case, they may perform poorly in the course. The student’s capacity to perform at a goal attainment level in the course would be a function of learning the necessary skills for participating in the new environment, trying to learn the material, completing the assignments, and persisting to the end of the course. In other words, performance is not just a function of effort and persistence but also of learning (Seijts & Latham, 2005).

Acquiring the knowledge and skills necessary for achieving a goal are prerequisites to performance.

Assigning or attempting performance goals before a person has the essential skills has a “detrimental effect” on the person’s ability to accomplish the goal and learn. Seijts and Latham (2005) said this is because focusing on reaching a performance goal place demands on people that restrict their ability to learn the skills necessary to accomplish the task. Using goals to motivate performance may impede learning if the performance goal is presented before a person has the capacity or resources to complete the task.

Adverse consequences of goals without skills

Assigning a specific challenging performance goal can cause a person without adequate skills to scramble for methods to accomplish the goal. This scrambling can cause the person to create inefficient or incorrect ways to achieve the goal or spend time recreating processes already in place. Some may call this creative, but it can also result in wasted resources, inefficient processes, and failed efforts. Learning how to perform the goal before starting to pursue the goal increases performance, increases self-efficacy, and strengthens commitment (Seijts & Latham, 2005, pp. 126-127).

The right kind of goal

Effective goal setting requires that managers set the right kinds of goals for a given situation or employee. Research by Sijts and Latham (2005) found that both learning and performance goals are necessary for a successful organization, but managers must apply them correctly.

Performance goals to accomplish tasks

Performance goals focus on accomplishing a task, for example, meeting the sales quota by the third quarter. The purpose of the performance goal is to foster the motivational mechanisms of effort, choice, and persistence leading to attaining the goal and if the people have the skills necessary to accomplish the task. A person’s behavior with a performance goal is to focus on ways to implement knowledge and skills toward quickly achieving the goal.

Suppose a person lacks the necessary skills or knowledge. In that case, they will not be able to perform at a goal attainment level, regardless of motivation. Performance goals are appropriate when the strategy is clear. The organization has established and proven processes. The people have the skills and knowledge necessary to perform.

Learning goals to acquire skills

Learning goals focus on acquiring skills or knowledge. For example, discover strategies for improving customer relations or learn the skills for achieving performance goals. The purpose of the learning goal is to foster creativity and develop the skills and knowledge to pursue performance goals more effectively.

A person’s behavior with a learning goal is to look for new ideas, seek feedback, reflect, and test new ideas. Setting a learning goal for an employee who already has the necessary knowledge and skills is an ineffective use of resources. Learning goals are appropriate when the organization needs to adapt to a dynamic environment. Strategies are not clearly set, and processes are vague.

In short, managers can be more effective if they provide employees with the learning necessary to perform before assigning performance goals.

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