MOTIVATION

“Goal Setting Theory”by:•Arijit Banerjee (Roll No:91)•Nabanita Gupta (Roll No: 77)•Sonakshi Bhowmick (Roll No:65)•Sanjana Mitra (Roll No:57)•Sibayan Das (Roll No: 63) •Soudeep Samanta (Roll No: 66)

Introduction:

In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation.

This theory states that goal setting is linked to task performance & Specific and difficult goals with feedback lead to higher performance

Goal Difficulty and Performance

High

Task

Per

form

ance

Low Moderate Challenging Impossible

Area ofOptimalGoalDifficulty

Goal Difficulty

Features of Goal-setting theory

Goals Need to Be Specific

Goals Must Be Difficult but Attainable

Goals Must Be Accepted

Feedback Must Be Provided on Goal Attainment

Goals Are More Effective When They Are Used to Evaluate Performance

Deadlines Improve the Effectiveness of Goals

Characteristics of Effective Feedback

Effective Feedback

Specific

Relevant

Timely

Credible

Sufficientlyfrequent

Eventualities of Goal setting theory

1. Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he has potential of performing the task. Higher the level of self-efficiency, greater will be the effort.

2. Goal commitment- Goal setting theory assumes that the individual is committed to the goal and will not leave the goal.

The goal commitment is dependent on the following factors:

Goals are made open, known and broadcasted. Goals should be set-self by individual rather than designated.

Individual’s set goals should be consistent with the organizational goals and vision.

Advantages of Goal Setting Theory

Goal setting theory is a technique used to raise incentives for employees to complete work quickly and effectively.

Goal setting leads to better performance by increasing motivation and efforts, but also through increasing and improving the feedback quality.

Limitations of Goal Setting Theory

Very difficult and complex goals stimulate riskier behavior.

If the employee lacks skills and competencies to perform actions essential for goal, then the goal-setting can fail and lead to undermining of performance.

There is no evidence to prove that goal-setting improves job satisfaction.

Dr.Edwin Locke and Dr.Gary Latham (1990)

Dr. Lock & Dr. Latham joint published ..”A Theory of Goal setting & task performance” in 1990.

This book says the importance of setting specific & difficult goals. It included there are five (5) fundamental principles that lie behind effective goal settings.

Conclusion

Locke and Latham provide a well-developed goal-setting theory of motivation.

The theory emphasizes the important relationship between goals and performance.

Research supports predictions that the most effective performance seems to result when goals are specific and challenging, when they are used to evaluate performance and linked to feedback on results, and create commitment and acceptance.

The motivational impact of goals may be affected by moderators such as ability and self-efficacy.

A learning goal orientation leads to higher performance than a performance goal orientation,

Group goal-setting is as important as individual goal-setting.

Case Study

Hasso Plattner Co-founder of the German software firm SAP, motivates employees by setting stretch goals. Platter set a shockingly optimistic goal of 15 % annual growth for SAP software license revenues. Employees responded by achieving an even higher growth of 18%,

Plattner set another stretch goal, of by announcing a bonus plan that would pay $381 million to hundreds of managers & key employees ..if they could double the company's market capitalization from a starting point of $57 billion by the end of 2010. Employees responded again by increasing the market capital double within the given time.

....For Plattner setting stretch/higher goals was a way to inject entrepreneurial energy into a 35 years old company.