Chapter 4

Goals are jointly set by managers and employees

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goals are jointly set by managers and employees; progress on goals is periodically reviewed, rewards are allocated on basis of this progress Locke’s Model of Goal Setting: goals motivating by… Direct attention – goals indicate where one should direct their efforts when they’re choosing among things to do e.g. assignment due in a few days, u say no to friends’ invitation to movie Regulate effort – goals suggest how much effort one should put into a task e.g. if high mark in ACCT is more important than in OB, u put more effort in accounting Increase persistence – effort spent on a task over time e.g. when ppl keep goals in mind, they will work hard even when facing obstacles – once goals are set, one can develop plans for achieving these goals e.g. goal to become fit may include plans to join a gym, work our w/ frds, etc Effective Goals: need to be… SMART S pecific – one knows exactly what is to be achieved M easurable A ttainable – goals (even if difficult) are reasonable, achievable R esults-oriented – support vision of organization T ime-bound – goals to be achieved within a stated time - specific goals inc. performance, under certain conditions (but may not work in complex tasks b/c ppl become too goal-focused on complex tasks, not better solutions) - difficult goals, when accepted, result in higher performance than do easy goals (but not when employees view goals as impossible) - feedback leads to higher performance - goals are equally effective whether participatively set, assigned, or self-set (how goals are set is not related to performance; but employees more likely to accept goals if participatively set) - goal commitment and financial incentives affect whether goals are achieved ($$ can lower commitment to difficult goals, inspire ppl to refuse to help co-workers, neglect tasks not directly related to financially-rewarded goals, may affect quality) - Factors that influence G-P relationship: Goal commitment, Self-efficacy, Task characteristics, National culture * self-efficacy = one’ belief that he is capable of performing a task (if high → confidence, try harder to master challenges, respond to –ve
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P ART 2: S TRIVING FOR P ERFORMANCE *simpler, well-learned, independent tasks → goals more successful *culture-bound theory (e.g. for Canada and US) RESPONSES TO THE REWARD SYSTEM EQUITY THEORY = ppl compare their job inputs ( effort, experience, education, competence, etc) and outcomes ( salary levels, raises, recognition, work conditions ) w/ those of others; then respond to eliminate any inequities - if ratio equal, state of equity exists; fairness perceived → justice (vice versa) *treated EQUITABLY (good performers deserve higher pay, vice versa) =/= treated EQUALLY (same pay) Ratio of Output to Input Person 1’s Perception Person 1 < Person 2
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goals are jointly set by managers and employees progress on...

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