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Four factors that moderate the strength of the relationship between goals and performance

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The first factor is ability. As the limits of a person's ability are approached, performance tends to level off. The second factor, goal commitment, refers to an individual's determination to reach a goal, regardless of whether the goal was set by that person or someone else. 

The third factor, feedback, provides information to the employee and others about outcomes and the degree of employee performance. The fourth factor is task complexity. For simple tasks, challenging goals lead directly to high performance. For complex tasks, effort does not lead directly to high performance.

Goal setting is one of the key mechanisms for increasing job satisfaction and performance because it permits employees to be self-motivated. 

Five requirements must be in place for goal setting to have positive benefits for the employee and organization: the employee’s knowledge and ability, the employee’s commitment to a goal, feedback on the task, establishment of subgoals on complex tasks, and a leader who removes obstacles that prevent employees from reaching their goals.
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