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Goal Setting Theory

The document discusses goal setting theory and its characteristics. It defines what a goal is and provides an overview of goal setting theory proposed by Edwin Locke in the 1960s. It outlines characteristics of effective goals and why people get motivated by goals. It also discusses other factors like feedback, employee participation, goal commitment, task characteristics, and national culture that can impact the model.

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102 views25 pages

Goal Setting Theory

The document discusses goal setting theory and its characteristics. It defines what a goal is and provides an overview of goal setting theory proposed by Edwin Locke in the 1960s. It outlines characteristics of effective goals and why people get motivated by goals. It also discusses other factors like feedback, employee participation, goal commitment, task characteristics, and national culture that can impact the model.

Uploaded by

safi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NAME EHSAN ULLAH

Roll. No 22
Class M.com 1st 2021
Subject Business Management
2021
GOAL SETTING THEORY AND ITS
CHARACTERISTICS?

Instructor Sir Prof


Zaman Khan

6/8/2021
Goal Setting Theory
Goal-setting theory is a theory based on the idea that setting
specific and measurable goals is more effective than setting
unclear goals. Employees are more motivated by well-
defined goals and constructive feedback and are more likely
to accomplish these goals when they are specific and
measurable.
What is goal?
Something that you hope to achieve
Synonym of aim
Goals are outcome statements that define what an
organization is trying to accomplish, both
programmatically and organizationally.
Goals are usually a collection of related programs, a
reflection of major actions of the organization, and
provide rallying points for managers.
Overview of the theory
In 1960’s Edwin Locke proposed Goal Setting theory of
motivation.
This theory states that goal setting is linked to task
performance
It states that specific and challenging goals along with
appropriate feedback contribute to highest and better task
performance.
Characteristics of Goals
Goal must be very specific and clear, (to avoid
misunderstanding)
Goals must have some deadlines
Goal must be realistic and challenging – Feeling of
pride
Goals must be measurable
Why people get motivated from goals?

Difficult goals attract attention and keep us away


from distraction.
Challenging goals energies us and push for work
harder.
When goals are tough we discover new ways to
accomplish it.
2nd component- Feedback
Provide feedback is very essential on goal
accomplishment –why
It helps in identifying discrepancies what they have done
and what needs to be done.
It helps in guiding behavior
Self-generated feedback mechanism must be designed
Should employees Participate or not ……
Research shows mixed result on this
Where employees participate they try to get less
challenging goals which later on effect organization
On the other side it is easier to for management to get the
goals accepted as employees are participating in the
process too
If participation is not used then explanation over purpose
and importance must be explained.
Other variable effecting the model

GOAL
GOAL
COMMETENT
COMMETMENT

GOAL
GOAL

TASK NATIONAL
CHARACTERTIS CULTURE
Goal Commitment
Individual must be commitment to goal.
They should not lower down or abandon the goal
They must have two characteristics –
A) They believe they can achieve it.
B) They want to achieve it.
Research shows goal setting theory does not work in
every condition
Task Characteristics
When goal theory work well-
If the task is simple
If the task is of the interest of the employees
If any direct reward is associated to the task
National Culture
Goal setting theory is very culturally bound.
As it is developed and adopted in USA and Canada where
people are independent and seek for challenging goals to
grow.
It may not work well with those countries where people s
Are interdependent and they try to skip challenging goals
and look for shortcuts.

APPROACHES TO SETTING GOALS


In an organization goals can be either set through
a) Traditional Goal setting
b)Management by Objectives (MBO)

Traditional Goal Setting


Traditional Goal: Setting is an approach to setting
goals in which goals are set at the top level of the
organization and then broken into sub goals for each level
of the organization.

Who Introduce Traditional Goal Setting


Theory
This theory is introduced by Locke in the 1960s,
The downside of Traditional Goal Setting
Theory
Management by Objectives (MBO)
A Process of mutually agreed upon goals and using those
goals to evaluate employee performance.
In Simple Words
Management by objectives (MBO) is a strategic
management model that aims to improve the performance
of an organization by clearly defining objectives that are
agreed to by both management and employees
Who Introduced This Theory
The term was first introduced by management guru Peter
Drucker in his 1954 book, The Practice of Management.
Process of Management by Objectives

 Steps in Management by Objectives Process

1.  Define organization goals


Setting objectives is not only critical to the success of any
company, but it also serves a variety of purposes. It needs
to include several different types of managers in setting
goals. The objectives set by the supervisors are
provisional, based on an interpretation and evaluation of
what the company can and should achieve within a
specified time.
 

2. Define employee objectives


Once the employees are briefed about the general
objectives, plan, and the strategies to follow, the
managers can start working with their subordinates on
establishing their personal objectives. This will be a one-
on-one discussion where the subordinates will let the
managers know about their targets and which goals they
can accomplish within a specific time and with what
resources. They can then share some tentative thoughts
about which goals the organization or department can find
feasible.
 

3. Continuous monitoring performance and


progress
Though the management by objectives approach is
necessary for increasing the effectiveness of
managers, it is equally essential for monitoring the
performance and progress of each employee in the
organization.
 
4. Performance evaluation
Within the MBO framework, the performance review is
achieved by the participation of the managers concerned.
 
5. Providing feedback
In the management by objectives approach, the most
essential step is the continuous feedback on the results
and objectives, as it enables the employees to track and
make corrections to their actions. The ongoing feedback
is complemented by frequent formal evaluation meetings
in which superiors and subordinates may discuss progress
towards objectives, leading to more feedback.
 
6. Performance appraisal
Performance reviews are a routine review of the
success of employees within MBO organizations.

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