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

Abstract

The article presents research which examined the theory of aspiration levels in a simulated goal setting environment of a firm. The study included four tasks which were selected to test the primary hypothesis which include return on investment, market share, product market opportunities and number of plants. A management simulation game was used to simulate the complexity of the task and environment of goal setting in the firm. The statistical results of the study support the hypothesis that previous goals, previous performance, and competitor's previous performance form an effective predictor of aspiration levels in a subsequent time period.