| Goal setting theory was cited in research as a key component of Management by Objectives (MBO). According to the literature, implementation of MBO processes was often executed without proper consideration and inclusion of goal setting theory principles. Research also suggested if implemented with proper diligence to the principles, then MBO could have been effective in motivating higher levels of performance in organizational settings. However, there was no evidence in the research literature to support the suggestion. Further, there were multiple calls in the literature to perform macro studies of goal setting theory in organizational settings and to empirically show the effectiveness of MBO.;Researchers reported that confounding variables along with inability to confine MBO treatments to control groups exacerbated organizational level research. The problem was non-trivial. Understanding how goal setting theory and MBO worked together to motivate higher levels of performance could have led to the creation of a roadmap that ensured higher levels of MBO and goal setting program effectiveness. Net benefits included higher job satisfaction, engagement, and retention of employees.;Accordingly, the research was designed as a quantitative, non-experimental, ex post facto, correlational study to determine in a not-for-profit hospital setting located in north Texas whether there was a relationship between the exogenous or independent variable goal utilization in MBO and the endogenous or dependent factors of goal setting theory. The first evaluation was performed to illustrate the level of goal use and to indicate the presence of MBO within the organization. The second assessment was performed to gain an understanding of the effects of goal setting theory variables. Structural equation modeling (SEM) and multiple regressions were utilized to examine the relationships between the variables in the study. The statistics allowed complex equations involving fourteen variables to be analyzed simultaneously in an iterative algorithm. The research illustrated the impact of goal utilization on goal setting theory variables and the interaction effects among those variables within an organization utilizing MBO. While the results were not generalizable beyond the study, a roadmap emerged for future researchers to replicate the study and to begin the journey of discovering more about how to leverage goal setting as a means of motivating higher levels of performance in complex organizational settings.;Keywords: Management by Objectives, MBO, goals, goal setting theory. |
