Goal Setting Theory of Motivation - Coursework Example

Goal Setting Theory of Motivation Student’s Name Institution Goal Setting Theory of Motivation 1.0 Introduction Dr. Edwin A. Locke is the author of the motivation and goal-setting theory which is today celebrated to be among the best management theories. The theory has got principles that can be of significant impact to the businesses. It argues that the basic goals are the reasons to why employees go to work or see the reason to engaging in a particular job (Kleingeld, van Mierlo, & Arends, 2011). The management group that assists the employees set more effective and complex goals that allow them to make profits and boost performance more than they expected. Dr. Edwin Locke, American Psychologists from College Park, University of Maryland, started studying the strength of setting goals as from the late 1960s. His first argument was based on his article of 1968 that was entitled “Toward a Theory of Task Motivation and Incentives.” Dr. Locke later improved the theory to include that the specificity and difficulty of the task to be addressed would also influence performance. In explanation, the motivation would not be compelling if the goal was so easy to achieve. Dr. Locke and Dr. Gary Latham later published the main theory in 1990 in the book entitled “A Theory of Goal Setting and Task Performance,” that is commonly cited by scholars and business administrators (Asmus, Karl, Mohnen, & Reinhart, 2015). 2.0 Goal Setting Theory of Motivation Dr. Locke’s goal setting theory of motivation lays emphasis on task performance. It argues that challenging and specific goals accompanied with appropriate feedback leads to better and higher task performance (Bell & Kozlowski, 2011). In explanation, goals give direction and indicate to the employee what should be done and the efforts that need to be put in place. The goal setting theory of motivation has several features. First, it argues that the main source of motivation in business is the willingness to focus and work on attaining a particular goal (Nahrgang et al., 2013). The difficult, particular, and clear goals are better motivation factors as opposed to vague, general, and easy goals. Second, it argues that for better performance and greater output, the goals must be clear and specific. Clear, measurable, and unambiguous goals accompanied by a set time frame avoid misunderstanding. Third, the goals should be challenging and realistic so as to become motivational upon achievement (Gómez-Miñambres, 2012). As a result, the business person will be more attained in the setting of the next goal. In explanation, when the goal is more challenging, the reward is greater, and passion is created in achieving it and setting the next one. The goal setting theory has got advantages and disadvantages. Its first advantage is that it acts as a technique that can raise the employees’ incentives thus making them work more effectively and quickly. Second, it can lead to better performance through improving and increasing the quality of the feedback. It can also be helpful in the increasing of efforts and motivation. On the other hand, its first limitation is that the managerial goals can be in conflict with the organizational goals thus will negatively impact the performance since it calls for an action drift that is incompatible (Nahrgang et al., 2013). Second, very complex and difficult goals can lead to riskier behaviour. Third, lack of competence and skills to perform particular actions on the part of the employee can lead to failure of the goal-setting thus undermining the performance. Lastly, there has been no evidence proving the setting of goals will improve job satisfaction. 3.0 Application of Goal Setting Theory in Business Businesses widely use goal setting theory to sustain and improve the work performance. The theory assumes that the behaviour of the employee will determine his or her intentions and goals. As a result, it is expected that the performance and efforts of the employee in a given business entity will be determined by the goals given to the employees and the ones they decide to pursue. In the companies, successful managers employ the goal setting theory to improve performance and clarify expectations (Hoch & Kozlowski, 2014). The employees are also developed into better workers thus making the company stronger. In addition, goal setting can act as an agreement between the employer and the employee thus creating greater business opportunities for growth and accountability. Globally, businesses use the goal setting theory concept of ‘Management by Objectives’, which is abbreviated as MBO. The MBO approach helps in the systematic alignment of the goals of the employees and that of the organisation. Consequently, all the players in the company are aware of what they are doing and the importance of their activities (Gómez-Miñambres, 2012). The approach, therefore, ensures that the company goals coincide with the goals of its employees. It focuses on result expectations, main areas of interest, and integration of the superior and subordinate goals in a business. These measures are used to determine the operations and contribution of the employees in the company. Even though MBO has got identified steps, it might be variedly applied in different businesses depending on its features and from particular theorists to another. Some of the areas of difference include reviewing of performance, working towards goals accomplishments, and setting objectives. MBO is, therefore, not an effort of a person but rather calls for managers and employees collaboration in the setting of the business goals and ways to which they can be met. The diversity witnessed in decision making has a positive effect as it allows for development of decisions that are specific and fit in the company. Management of Objectives has got five steps; first, the business must review or set its objectives. It involves clear definition of the business objectives. Second, the objectives should be cascaded down to the business employees. In explanation, the objectives must be clear to each of the employees upon setting. They should also be specific, measurable, achievable, relevant, and time-bound to ensure that the employees are held accountable. Third, participation must be encouraged in goal setting (Lunenburg, 2011). Every person in the company should be able to understand how their personal goals relate to the business objectives and allow for discussion and sharing of the information. As a result, the employees will set goals as per those of the business thus increasing the personal responsibility. At this step, employees are motivated through responsibility decision making, and self-direction. The next step entails monitoring of progress. Since the objectives and goals are measurable, they can be monitored. However, the monitoring should be conducted in a timely manner so as to allow for adjustments that will ensure achievement of goals. Each of the business goals should have sub-goals to allow for adequate monitoring of accountability and performance. Lastly, performance should be rewarded and evaluated (Asmus, Karl, Mohnen, & Reinhart, 2015). The MBO’s main aim should be to improve performance at all the business levels. Rewards, therefore, should be given as compensation. The process is, therefore, repeated. The reward system is important for the increasing of goal commitment, and there are various types of rewards that an employee can be given. It has been assumed the business employees can only be motivated by monetary rewards, but that is not the case. Intangible and non-cash rewards can also be used to motivate employees (Presslee, Vance, & Webb, 2013). The non-cash rewards include merchandise, travel, and word-of-mouth. However, the reward system needs to align with the business goals upon which the variety of reward types will be given. Employees are most likely to increase performance, commitment, and effort to attain the set goals if the available reward is more enticing. Organisations have begun to appreciate the team goals as managers have changed their practice and view on goal setting. There is no difference in the functionality of the team goals and individual goals. However, setting the team goals is more complex compared to the individual ones. For instance, for an individual effort to integrate into the team goals, the person must first accept it. However, the dynamism in an individual in given team environments might cause conflicting personal goals. The competition can lead to discord in the team thus negatively affecting performance. The team performance on the set goals can be monitored and set about the goals of the organization using the electronic dashboards (Shantz & Latham, 2011). The application allows for the tracking of real-time performance and also allows for aligning with the team goals to the organizational mission. Furthermore, dashboards help in the provision of feedback among the teams thus enable them to efficiently review their performance against the organizational goal. 4.0 Case Studies of Goal Setting Theory Application Several of the international American based companies have been documented as using the goal setting theory. For instance, Moog which is an international manufacturer and designer of fluid and motion controls for medical, industrial, defence, and aerospace device markets. The company has incorporated the goal setting theory into its system (Fusion, 2016). It credits its success with the culture of uniting and motivating its workers. During the initial days of the interns in the company, they sit down with the management body to discuss the aspirations, skills, and job expectations. Furthermore, the employees are given a one-on-one discussion time with the managers on a regular basis. Consequently, an assessment is conducted on their performance and asked to suggest on how the process can be improved. The employees also go over the available job opening with the help of the management. The process helps in the integration of the individuals agenda into the company. The employees are also frequently capacity built and given promotions or offered different positions. In explanation, employees are always given complex tasks as a challenge and encouraged through a clear feedback. Another example is the General Electric Company, which applies the goal setting theory in all its organizational levels including the individual and departmental levels. The company has successfully implemented the theory at the organizational level through making it part of its mission and vision statement (Lunenburg, 2011). It considers the initiatives of goal setting to be the success of capitalism and all companies. General Electric Company set goals, review them regularly, set systems to ensure achievement of the goals, and continually seek to improve the goals. It also set challenging goals for its employees. It is, therefore, a wonderful example of implementing goals setting theory in business. 5.0 Conclusion The author of the motivation and goal-setting theory is Dr. Edwin A. Locke. The theory has got principles that can be of great impact to the small businesses. It argues that the basic goals are the reasons to why employees go to work or see the reason to engaging in a particular job. The theory emphasise task performance as the product of motivation in a work environment. It argues that motivation is caused by the willingness to focus and work in attaining a particular goal. Goals must also be clear and specific to lead to better performance and greater output. In addition, they must be challenging and realistic. The motivation and goal-setting theory have some advantages and disadvantages with the former outweighing the latter. As a result, several organizations have opted for the integration of the theory into their organizational structures. Businesses widely use goal setting theory to sustain and improve the work performance. Some of the multinational companies that have implemented the goal setting theory of motivation include Moog and General Electric Company. In both scenarios, the theory has proven to be successful. Even though there are areas that need to be considered in the theory, the theory has proven to be effective and efficient in motivating business employees thus improved outcome. References Asmus, S., Karl, F., Mohnen, A., & Reinhart, G. (2015). The impact of goal-setting on worker performance-empirical evidence from a real-effort production experiment. Procedia CIRP, 26, 127-132. Bell, B. S., & Kozlowski, S. W. (2011). Collective failure: The emergence, consequences, and management of errors in teams. Errors in organizations, 113-141. Fusion, J. (2016). Motivation and goal setting theory. Retrieved from http://smallbusiness.chron.com/motivation-goal-setting-theory-1187.html Gómez-Miñambres, J. (2012). Motivation through goal setting. Journal of Economic Psychology, 33(6), 1223-1239. Hoch, J. E., & Kozlowski, S. W. (2014). Leading virtual teams: Hierarchical leadership, structural supports, and shared team leadership. Journal of applied psychology, 99(3), 390-403. Kleingeld, A., van Mierlo, H., & Arends, L. (2011). The effect of goal setting on group performance: a meta-analysis. Journal of Applied Psychology, 96 (6), 1289-1304. Lunenburg, F. C. (2011). Decision making in organizations. International journal of management, business, and administration, 15(1), 1-9. Nahrgang, J. D., DeRue, D. S., Hollenbeck, J. R., Spitzmuller, M., Jundt, D. K., & Ilgen, D. R. (2013). Goal setting in teams: The impact of learning and performance goals on process and performance. Organizational Behavior and Human Decision Processes, 122(1), 12- 21. Presslee, A., Vance, T. W., & Webb, R. A. (2013). The effects of reward type on employee goal setting, goal commitment, and performance. The Accounting Review, 88(5), 1805-1831. Shantz, A., & Latham, G. (2011). The effect of primed goals on employee performance: Implications for human resource management. Human Resource Management, 50(2), 289-299. Read More

Clear, measurable, and unambiguous goals accompanied by a set time frame avoid misunderstanding. Third, the goals should be challenging and realistic so as to become motivational upon achievement (Gómez-Miñambres, 2012). As a result, the business person will be more attained in the setting of the next goal. In explanation, when the goal is more challenging, the reward is greater, and passion is created in achieving it and setting the next one. The goal setting theory has got advantages and disadvantages.

Its first advantage is that it acts as a technique that can raise the employees’ incentives thus making them work more effectively and quickly. Second, it can lead to better performance through improving and increasing the quality of the feedback. It can also be helpful in the increasing of efforts and motivation. On the other hand, its first limitation is that the managerial goals can be in conflict with the organizational goals thus will negatively impact the performance since it calls for an action drift that is incompatible (Nahrgang et al., 2013). Second, very complex and difficult goals can lead to riskier behaviour.

Third, lack of competence and skills to perform particular actions on the part of the employee can lead to failure of the goal-setting thus undermining the performance. Lastly, there has been no evidence proving the setting of goals will improve job satisfaction. 3.0 Application of Goal Setting Theory in Business Businesses widely use goal setting theory to sustain and improve the work performance. The theory assumes that the behaviour of the employee will determine his or her intentions and goals.

As a result, it is expected that the performance and efforts of the employee in a given business entity will be determined by the goals given to the employees and the ones they decide to pursue. In the companies, successful managers employ the goal setting theory to improve performance and clarify expectations (Hoch & Kozlowski, 2014). The employees are also developed into better workers thus making the company stronger. In addition, goal setting can act as an agreement between the employer and the employee thus creating greater business opportunities for growth and accountability.

Globally, businesses use the goal setting theory concept of ‘Management by Objectives’, which is abbreviated as MBO. The MBO approach helps in the systematic alignment of the goals of the employees and that of the organisation. Consequently, all the players in the company are aware of what they are doing and the importance of their activities (Gómez-Miñambres, 2012). The approach, therefore, ensures that the company goals coincide with the goals of its employees. It focuses on result expectations, main areas of interest, and integration of the superior and subordinate goals in a business.

These measures are used to determine the operations and contribution of the employees in the company. Even though MBO has got identified steps, it might be variedly applied in different businesses depending on its features and from particular theorists to another. Some of the areas of difference include reviewing of performance, working towards goals accomplishments, and setting objectives. MBO is, therefore, not an effort of a person but rather calls for managers and employees collaboration in the setting of the business goals and ways to which they can be met.

The diversity witnessed in decision making has a positive effect as it allows for development of decisions that are specific and fit in the company. Management of Objectives has got five steps; first, the business must review or set its objectives. It involves clear definition of the business objectives. Second, the objectives should be cascaded down to the business employees. In explanation, the objectives must be clear to each of the employees upon setting. They should also be specific, measurable, achievable, relevant, and time-bound to ensure that the employees are held accountable.

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