Comparative Analysis of Goal-Setting Strategies Across Cultures

Erez & Earley (1987)

Keywords: goal setting, organizational culture, participation, performance, goal acceptance, power distance, collectivism

The Study: This study examines the relationship between goal-setting strategies, goal acceptance, and performance across different cultural contexts. Three strategies were analyzed: assigned goals, goals set by a representative, and participative goal setting. The sample included U.S. students, urban Israeli students, and kibbutz students, reflecting differences in collectivism and power distance.

Key Findings: Participative strategies led to higher levels of goal acceptance and performance compared to assigned goals. Goal acceptance decreased as difficulty increased, particularly in non-participative conditions, but remained more stable under participative settings. Culture did not significantly moderate goal acceptance but influenced performance under highly difficult goals. Contexts with lower power distance and higher collectivism showed stronger positive effects from participation, whereas more individualistic contexts responded relatively better to assigned goals. Goal acceptance also acted as a mediator between goal-setting strategies and performance.

Practical Implications: The effectiveness of goal-setting strategies depends on their alignment with cultural values. Participative approaches tend to enhance engagement and performance in collectivist environments, while assigned goals may be more effective in hierarchical contexts.

For multinational organizations, adapting management practices to local cultural values is essential to maximize effectiveness and employee engagement.

Reference: Erez, M., & Earley, P. C. (1987). Comparative analysis of goal-setting strategies across cultures. Journal of Applied Psychology, 72(4), 658–665.