Determinants of Aspiration Levels in a Simulated Goal Setting Environment of the Firm

THE PURPOSE OF THIS RESEARCH IS TO REEXAMINE THE THEORY ON ASPIRATIONS WIDELY USED IN MANAGEMENT LITERATURE TO EXPLAIN HOW BUSINESS GOALS ARE ESTABLISHED, YET UNSUPPORTED BY EVIDENCE IN PREVIOUS RESEARCH DESIGNED TO TEST ITS VALIDITY FOR APPLICATION IN THE GOAL SETTING ENVIRONMENT OF THE FIRM. THE RESEARCH PROVIDED EMPIRICAL SUPPORT FOR THE MACRO- ORGANIZATION THEORY ON GOAL SETTING IN A SIMULATED ENVIRONMENT. EMPIRICAL EVIDENCE WAS PROVIDED THAT THE SMALL GROUP THEORY ON GOAL SETTING (DEVELOPED IN A VERY SIMPLE TASK ENVIRONMENT) WAS VALID IN A SIMULATED COMPLEX ENVIRONMENT MORE CLOSELY APPROXIMATING THE ACTUAL GOAL SETTING ENVIRONMENT OF THE FIRM. THE EMPIRICAL EVIDENCE IN THE SIMULATED ENVIRONMENT MAY OFFER JUSTIFICATION AND SUPPORT FOR EFFORTS TO FIELD TEST THE SAME THEORY AND HYPOTHESES IN OPERATING BUSINESS ORGANIZATIONS.