Final answer:
The goal-setting theory is about how specific, challenging goals and timely feedback enhance performance and motivation, relying also on the individual's self-efficacy and aligning with the participative nature of Theory Y management.
Step-by-step explanation:
The description that best indicates what goal-setting theory is about is: "managers increase motivation and enhance performance by setting specific, challenging targets and providing timely feedback." This theory is primarily concerned with how setting challenging and specific goals can motivate individuals to perform better in a work setting. It is based on the premise that clear goals and appropriate feedback are fundamental components of employee motivation.
Self-efficacy also plays an important role in goal-setting theory as it involves an individual's belief in their own capability to complete a task, which can influence the goals they set and their motivation to achieve them. Moreover, the Theory Y approach to management assumes that employees are motivated by inner satisfaction and fulfillment from their work and will perform better if they are involved in setting their own work goals and receiving feedback.