1 Theory. A set of assumptions, propositions, or accepted facts that attempts to provide a
plausible or rational explanation of cause-and-effect (causal) relationships among a group of observed phenomenon., The word's origin (from the Greek thanes, a spectator), stresses the fact that all theories are mental models of the perceived reality.
Goal. An observable and measurable end result having one or more objectives to be achieved within a more or less fixed time frame.
2. Goal Setting. Motivational technique based on the concept that the practice of setting specific goals enhances performance, and that setting difficult goals results in higher performance than setting easier goals.
3.     Important Features of Goal Setting
The important features of goal-setting theory are as follows:
a.            The willingness to work towards attainment of goal is main source of job motivation. Clear, particular and difficult goals are greater motivating factors than easy, general and vague goals.
b.           Specific, and clear goals lead to greater output and better performance. Unambiguous, measurable and clear goals accompanied by a deadline for completion avoids misunderstanding.
c.            Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains them, and sets him up for attainment of next goal. The more challenging the goal, the greater is the reward generally and the more is the passion for achieving it.
d.           Employees' participation in goal is not always desirable.
e.            Participation of setting goal, however, makes goal more acceptable and leads to more involvement.
4.                                         Advantages of Goal Setting Theory:
a.            Goal setting theory is a technique used to raise incentives for employees to complete work quickly and effectively.
b.           Goal setting leads to better performance by increasing motivation and efforts.
5                                      Limitations of Goal Setting Theory:
a.             A. times, the organizational goals are in conflict with the managerial goals. Goal conflict has a detrimental effect on the performance if it motivates incompatible action drift.
b.             Very difficult and complex goals stimulate riskier behavior.
c.         If the employee lacks skills and competencies to perform actions essential for  goal, then the goal-setting can fail and lead to undermining of performance. 
d.       There is no evidence to prove that goal-setting improves job satisfaction.