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Goal setting

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The expectancy theory demonstrates the importance of rewards in relation to the effort-performance ratio. This lesson extends the knowledge of goal setting as a means of motivation employees to reach high levels of performance and satisfaction. At the end of the lesson students should be able to:
Explain how performance is affected by goal setting.
State the effects of goal setting on job satisfaction and performance.
Describe reward systems for fostering high performance.

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Goal setting

  1. 1. Goal Setting<br />Motivation<br />The information is taken from Slocum and Helriegel (2007)<br />
  2. 2. The expectancy theory demonstrates the importance of rewards in relation to the effort-performance ratio. This lesson extends the knowledge of goal setting as a means of motivation employees to reach high levels of performance and satisfaction. At the end of the lesson students should be able to:<br />Explain how performance is affected by goal setting.<br />State the effects of goal setting on job satisfaction and performance. <br />Describe reward systems for fostering high performance. <br />Overview<br />
  3. 3. Key terms:<br />Goals<br />Goal setting<br />Goal – a future outcome (result) that individuals and groups strive to achieve.<br />Goal setting – the process of stating goals toward which individuals, teams, departments, and organizations will strive to achieve.<br />Objective: Explain how performance is affected by goal setting.<br />
  4. 4. Goals guide and direct behaviour.<br />Goals provide challenges and standards against which individual and organizational performance can be assessed.<br />Goals justify the performance of a task and the use of resources.<br />Goals define the basis of organizational design.<br />Goals serve as an organizing function for a person’s work.<br />Importance of goal setting<br />
  5. 5. Locke-Latham goal-setting model<br />Challenge<br /><ul><li>Goal difficulty
  6. 6. Goal clarity
  7. 7. Self-efficacy</li></ul>Mediators<br /><ul><li>Direction
  8. 8. Effort
  9. 9. Persistence
  10. 10. Task strategy</li></ul>Performance<br />Rewards<br />Satisfaction<br />Moderators<br /><ul><li>Ability
  11. 11. Goal commitment
  12. 12. Feedback
  13. 13. Task complexity</li></ul>Consequences<br />Basic idea of the model is that a goal serves as a motivator. Persons can compare their present performance with that required to achieve the goal. If person believe that they will fall short of a goal, they will feel dissatisfied and work harder to attain the goal as long as they believe the goal can be achieved.<br />
  14. 14. Features:<br />Goals should be a challenge to the individual. The challenge is affected by goal difficulty, goal clarity, and self-efficacy. <br />Goal difficulty – the goal should be challenging; not impossible to achieve.<br />Goal clarity – the goal must be clear and specific <br />Self-efficacy – a believe that the individual has the ability to perform.<br />Locke –Latham model<br />
  15. 15. Features – show the variables and relationships that can lead to high performance.<br />Moderators<br /><ul><li>Moderators are those factors that determinethe strength of the relationship between goal and performance. The four factors are:</li></ul>Ability – limits the individual capacity to perform<br />Goal commitment- individual’s determination to reach the goal.<br />Individual’s participation in goal setting<br />Sense of ownership<br />Belief that positive rewards are contingent on achieving goals<br />Expectation of punishment for not achieving.<br />Feedback – information provided about level of performance<br />Task complexity – in more complex tasks effort does not lead to high performance. <br />Locke –Latham model<br />
  16. 16. Direction of attention- activities to keep individuals focus.<br />Effort – the strengthexerted<br />Persistence – willingness to work on the task over extended periods of time<br />Task strategy – strategy for tackling the tasks.<br />Mediators – factors supporting achievement of goals<br />
  17. 17. Performance is a function of goal-setting. Performance is likely to he high when:<br />Challenging goals are present<br />Moderators are present <br />Mediators are operating<br />Three types of quantitative indicators can be used to assess performance:<br />Units of production or quantity<br />Dollars (cost, profits, income or sales)<br />Time<br />Performance<br />
  18. 18. When employees attain high level of performance, reward can push individuals to continue to perform.<br />Rewards<br />
  19. 19. In Locke and Latham model, the primary focus is the degree of satisfaction the person feels with their performance<br />Employees who set extremely high, difficult goals may experience less job satisfaction than employees who set lower, more achievable goals.<br />NB: some level of satisfaction is associated with striving for difficult goals, for example:<br />Responding to the challenge<br />Making progress<br />Believing that benefits may still be derived from the experience regardless of the outcome<br />Satisfaction<br />
  20. 20. Encourages people to develop action plans to reach their goal.<br />Focuses people’s action on their relevant goal actions.<br />Causes people to exert effort necessary to achieve the goals.<br />Spurs people to persist in the face of obstacles.<br />Impact of goal-setting on performance<br />
  21. 21. Goals are difficult to achieve when employees lack skills and abilities needed to perform at a high level.<br />Successful goals setting takes longer when employees are given complicated tasks that require a considerable amount of learning<br />Goal setting can lead to major problems when rewards are given to wrong behaviours.<br />Caveat<br />

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