Goal setting involves establishing specific, measurable, achievable, realistic and time-targeted (S.M.A.R.T) goals. Work on the theory of goal-setting suggests that an effective tool for making progress is to ensure that participants in a group with a common goal are clearly aware of what is expected from them.^{[citation needed]} On a personal level, setting goals helps people work towards their own objectives. Goal setting features as a major component of personal development literature. The word goal is also one of the most recognizable words in management for motivational endeavors.

It is considered an “open” theory, so as new discoveries are made it is modified. Studies have shown that specific and ambitious goals lead to a higher level of performance than easy or general goals. As long as the individual accepts the goal, has the ability to attain it, and does not have conflicting goals, there is a positive linear relationship between goal difficulty and task performance.^[1]

Goals are a form of motivation that sets the standard for self-satisfaction with performance.^[1] Achieving the goal one has set for oneself is a measure of success, and being able to meet job challenges is a way one measures success in the workplace.