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Goal Setting Theory
Goals affect behavior in four ways:
1. Direct attention to a particular task
2. Mobilize on-task effort
3. Encourage task persistence
4. Facilitate strategy development
Goal Setting Theory
Goal Difficulty - the more challenging a goal is, the more motivating the goal
Goal Specificity - the more specific a goal, the more motivating the goal
Goal Acceptance – individuals are more likely to achieve a goal that they accept as their own
Goal Commitment - individuals are more likely to achieve a goal to which they are committed
**Feedback - enables individuals to assess progress toward goals and adjust
33 studies have compared the effectiveness of goals plus feedback with either goals alone or feedback alone
17 out of 18 studies found that the combination of goals and feedback to be better than goals alone
21 out of 22 studies found the combination to be better than feedback alone
Goals and Feedback
Latham & Baldes (1975): Trucks were only being loaded to about 60% of their
capacity. Latham & Baldes set drivers the goal of hauling 94% of
the trucks maximum allowable weight. Result: Within a month
the company had saved
$250,000
Follow-up: Still at 90% 7
years later!
One of the Original Goal Setting Studies
4. Discrepancies lead to satisfaction, or dissatisfaction
GOAL BEHAVIOUR
FEEDBACK
SATISFACTION
DISCREPANCY
Satisfaction leads to maintaining effort. Dissatisfaction leads to an increase in effort.
Practical Implications of Goal Setting Theory
1. Assign specific goals
2. Assign difficult but acceptable performance goals
3. Involve employees in goal-setting, but…
4. Provide feedback concerning goal attainment
SMART Goals: A Goal Setting Application
Specific
Measurable
Attainable/Action-Oriented
Relevant
Time-bound
Management by Objectives: A Goal Setting Application
OverallOrganizational
Objectives
OverallOrganizational
Objectives
XYZ Company
Consumer ProductsDivision
Industrial ProductsDivision
Divisional Objectives
Divisional Objectives
Departmental Objectives
Departmental Objectives
Individual Objectives
Individual Objectives
Production
Sales
CustomerService
MarketingResearch
Develop