Questions: As the manager of a local tire shop, Joel is a vocal advocate of the goal-setting theory of motivation. Which of the following is correct regarding goal-setting theory? It believes that goals should be extremely challenging. It states that employees are motivated to achieve goals that they and their managers establish together. It believes that goals should be very general. It posits that employee commitment to a goal is not necessary since the employee can be motivated to achieve the goal through the threat of negative reinforcement and/or punishment.

The answer is: It states that employees are motivated to achieve goals that they and their managers establish together.

Explanation for each option:

1. It believes that goals should be extremely challenging.
   This statement is partially correct but not entirely accurate. Goal-setting theory, developed by Edwin Locke and Gary Latham, suggests that goals should be challenging yet attainable. Extremely challenging goals might be demotivating if perceived as unattainable.

2. It states that employees are motivated to achieve goals that they and their managers establish together.
   This is correct. Goal-setting theory emphasizes the importance of setting goals collaboratively. When employees participate in goal-setting, they are more likely to be committed to achieving those goals, as they feel a sense of ownership and involvement.

3. It believes that goals should be very general.
   This is incorrect. Goal-setting theory advocates for specific and clear goals rather than general ones. Specific goals provide clear direction and criteria for measuring success, which enhances motivation and performance.

4. It posits that employee commitment to a goal is not necessary since the employee can be motivated to achieve the goal through the threat of negative reinforcement and/or punishment.
   This is incorrect. Goal-setting theory emphasizes the importance of employee commitment to goals. Motivation through threats or punishment is not aligned with the principles of goal-setting theory, which focuses on positive motivation through clear, challenging, and agreed-upon goals.