Efficiency Goals: Conceptualization, Feasibility, and Utility
Although efficient performance is critical to today’s organizations, research on efficiency goals remains relatively sparse. Drawing on goal-setting theory, we examined the effects of assigning dual efficiency goals (i.e., goals for both outputs and inputs) relative to single efficiency goals (e.g., goals for a ratio of outputs to inputs), and mere output goals on task performance. In addition, we examined task difficulty as a moderator for dual efficiency goals. In a between-participants lab experiment, we found that participants with dual efficiency goals earned significantly more profit than did participants with single efficiency goals, or with output goals. Participants with single efficiency goals earned significantly more profit than did participants with output goals. In terms of revenue, participants with output goals performed significantly better than did participants with dual efficiency goals, or with single efficiency goals. In terms of expense, participants with dual efficiency goals performed significantly better than did participants with single efficiency goals, or with output goals. Participants with single efficiency goals performed significantly better than did participants with output goals. However, regarding task difficulty, our analysis did not reveal a significant moderating effect. The implications for research and practice are discussed.