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Essay / Expectancy Theory - 1613
Goal setting is primarily used in the short term because it is easier to plan for the short term than the unpredictability of the long term future. The key principles of goal setting state that goals should be clear, ambitious, involve team commitment, constructed feedback and complexity and use a SMART framework (specific, measurable, achievable, relevant, limited in time) (Latham, 2003). However, this is not without limitations, goal setting theory depends on the individual's commitment to the task (Locke and Latham, 2002). Goal setting theory is recognized as the success of an organization, by applying its principles and examining its SMART framework to achieve goals. NUMMI does not actually take advantage of the SMART framework defined by goal setting theory, while they give employees tasks that meet both the skill and non-skill classifications, they have chosen to abandon the classification of specialized jobs in general. Instead, NUMMI allowed more flexibility to workers and gave them the power to decide on work standards and arrangements, which was found to have a positive effect on individual performance ( VandeWalle, Brown, Cron and Slocum, 1999); it can be argued, however, that this is not the most productive action NUMMI could undertake. Like the absence of a precise objective