1. Motivation in Action Chapter 5

2. 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

3. Class Exercise

4. 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

5. 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

6. 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

7. Goal Setting Process…

8. 1. Goals have an initial proactive influence on performance GOAL BEHAVIOUR

9. 2. Following this initial performance individuals are given feedback GOAL BEHAVIOUR FEEDBACK

10. 3. Individuals compare their performance to their goals GOAL BEHAVIOUR FEEDBACK DISCREPANCY

11. 4. Discrepancies lead to satisfaction, or dissatisfaction GOAL BEHAVIOUR FEEDBACK SATISFACTION DISCREPANCY Satisfaction leads to maintaining effort. Dissatisfaction leads to an increase in effort.

12. 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

13. SMART Goals: A Goal Setting Application S pecific M easurable A ttainable/ A ction-Oriented R elevant T ime-bound

14. Management by Objectives: A Goal Setting Application Overall Organizational Objectives Overall Organizational Objectives XYZ Company Consumer Products Division Industrial Products Division Divisional Objectives Divisional Objectives Departmental Objectives Departmental Objectives Individual Objectives Individual Objectives Production Sales Customer Service Marketing Research Develop

15. NEXT CLASS Read Have It Working by Monday, Part 1 in Course Package