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 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 MBO Cascading of Objectives Organizational Objectives Divisional Objectives Departmental Objectives The XYZ Company Consumer Products Production Sales Customer Service Industrial Products Marketing Research Development Individual Objectives Prentice Hall 2001 Chapter 7 3 Sears Auto Repair What went wrong Why What lessons should be learned Expectancy Theory Performance Issues Effort performance relationship Training education Performance rewards relationship Will my performance be recognized rewarded How are rewards allocated Seniority versus merit Is the evaluation process fair Rewards personal goals Is the reward personally desirable If you perform well we will put you in charge of our overseas office Open Book Management Background at SRC Extreme financial difficulties High level of distrust Employees wanted more challenge High in growth need strength Job characteristics Changes Implemented at SRC Sharing financial information Principle of job enrichment Trust Soliciting employee input Recognition Ideas are valued Bonus plans employee stock ownership plan Financial incentives short term and long term Outcomes at SRC Employees When I first came here I didn t realize that as a worker on the floor you could have a direct impact on the profit Task significance JCM Pay attention to costs quality and time to complete work Responsibility Herzberg Employee Outcomes cont Ideas are valued Recognition Herzberg New product Reading and understanding financial information Skill variety JCM Growth Herzberg SRC s Financial Performance Growth Stock price From 10 cents to 18 60 Employees Profitability Accuracy Inventory counts Expectancy Theory Individual Effort 1 Individual Performance 2 Organizational Rewards 3 1 If I try hard can I do it 2 Do I need to perform at a high level to receive rewards Personal Goals 3 Are the rewards personally desirable Prentice Hall 2001 Chapter 6 11