Final answer:
Goal Setting Theory emphasizes the role of specific, challenging goals in improving performance, with self-efficacy influencing one's motivation to set and achieve such goals. Autonomy is a significant predictor of job satisfaction, aligning with Goal Setting Theory and Theory Y principles. The correct option is C.
Step-by-step explanation:
The theory that emphasizes the importance of setting specific, challenging goals to enhance performance is the goal-setting theory. This theory suggests that setting specific and challenging goals can motivate people to perform better as they provide clear direction and a sense of accomplishment once achieved.
One key to this theory's effectiveness is the notion of self-efficacy, which is an individual's belief in their ability to succeed. High self-efficacy can encourage a person to set higher goals and persist through challenges. Moreover, the theory outlines that goals must be accompanied by feedback to help individuals track their progress and stay engaged.
Regarding job satisfaction, research indicates that autonomy is one of the most predictive factors. This aligns with the aspects of Goal Setting Theory, as when individuals have a say in setting their own work goals (as posited by Theory Y), they are likely to be more satisfied. Additionally, concepts such as modernization theory in sociology and the influence of cultural values on work motivation tie into how societies and individuals perceive success and set goals.