1. Goal Setting
“When you set a goal, you create something and it becomes real. You write it down You focus on it. You aspire to it, and that’s your motivation.” (Scott Grocki: 167)

2. Effective Goal Setting Techniques
Consider the level of difficulty
“More difficult” goals increase energy level
Consider the level of specificity
Specific goals increase your ability to focus and to measure your progress
Employee participation in the goal setting process
Increases the level of acceptance and commitment
Long-term and short-term goals
Yearly, monthly, weekly, & daily

3. MBO: Cascading of Objectives
Organizational
Objectives
The XYZ Company
Divisional
Objectives
Consumer Products
Industrial Products
Departmental
Objectives
Production
Sales
Customer
Service
Marketing
Research
Development
Management by objectives (MBO) emphasizes participation to set goals that are tangible, verifiable, and measurable. MBO’s appeal lies in its emphasis on converting overall organizational objectives into specific objectives for units and members of the organization.
As the figure above shows, the organization’s overall objectives are translated into specific objectives for each succeeding level (divisional, departmental, or individual) in the organization. But because lower-unit managers jointly participate in setting their own goals, MBO works from the “bottom-up” as well as from the “top down.” The result is a hierarchy that links objectives at one level to those at the next level. And for the individual worker, MBO provides specific personal performance objectives. So each person has an identified specific contribution to make to his or her unit’s performance. If all individuals achieve their goals, then their unit’s goals will be attained and the overall objectives of the organization will become a reality.
Individual
Objectives
Prentice Hall, 2001
Chapter 7

4. Sears Auto Repair What went wrong? What lessons should be learned?
Why?
What lessons should be learned?