Post on 26-Dec-2015
transcript
Goal-Setting Theory (Edwin Locke) Basic Premise: That specific and
difficult goals, with self-generated feedback, lead to higher performance
But, the relationship between goals and performance will depend on goal commitment
“I want to do it & I can do it”task characteristics (simple, well-learned)national culture
Management By Objective
A system in which specific performance objectives are jointly determined by subordinates and their supervisors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of that progress.
MBO makes objectives operational by a process in which they cascade down through the organisation.
MBO
A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress.
Key Elements
1. Goal specificity
2. Participative decision making
3. An explicit time period
4. Performance feedback
Key Elements
1. Goal specificity
2. Participative decision making
3. An explicit time period
4. Performance feedback
MBO is a motivational program based on goal setting. The goal(s) should: be mutually agreed upon. be difficult, but achievable (realistic). have a defined time frame be measurable (objective and
budgeted). provide means for feedback.
Steps in a Typical MBO Program1. The organization’s overall objectives and
strategies are formulated.2. Major objectives are allocated among
divisional and departmental units.3. Unit managers collaboratively set specific
objectives for their units with their managers.4. Specific objectives are collaboratively set
with all department members.5. Action plans, defining how objectives are to
be achieved, are specified and agreed upon by managers and employees.
6. The action plans are implemented.7. Progress toward objectives is periodically
reviewed, and feedback is provided.8. Successful achievement of objectives is
reinforced by performance-based rewards.
Setting Employee Objectives
Identify an employee’s key job tasks. Establish specific and challenging
goals for each task. Allow the employee to actively
participate. Prioritize goals. Build in feedback mechanisms to
assess goal progress. Link rewards to goal attainment.
Why MBOs Fail
Unrealistic expectations about MBO
results
Lack of commitment by top
management
Failure to allocate reward properly
Cultural incompatibilities
Other Approaches
Management By Exception (MBE) Management by exception is the
practice of focusing on important variances so that managers can direct their attention to areas that need improvement.
Performance reports show differences between budgeted and actual amounts
Management By Walking Around MBWA is a hyperactive, out-of-the
office, interventionist top management practice.
open-door management policy. made leadership more effective in
many well-run organizations. MBWA has been found to be
particularly helpful when an organization is under exceptional stress;
What Leaders and Managers Should Do As leaders and managers wander
around, at least three things should be going on:
They should be listening to what people are saying.
They should be using the opportunity to transmit the company's values face to face.
They should be prepared and able to give people on-the-spot help.