Deck 12: Goal Setting for Effective Organizations

Question 1

Identify and discuss the major factors in effective goal setting.

Answer 1

The major factors in effective goal setting are as follows:
- Should be realistic
The goal that is being set should be realistic and not far from being practically possible. The goal to be achieved has to be realistic so that it gets acceptance among employees.
- Should be achievable
The goal that is to be set should be the one that is achievable through any of the possible means. If the goal is not achievable in practicality it won't be of any use.
- Should be measurable
The goal that is to be set by a management has to be measurable. It is important because it is necessary to know the level of performance.
- Should be specific
The goal that is going to be set should be specific and clear. There must not be any scope of misunderstanding or miscommunication.
- Time limit should be defined
The time limit of the goal attainment should be clearly specified. The employees of the organization should know till when to achieve the goal.

Question 2

Discuss the role of participation in goal setting.

Answer 2

Participation plays a very important role in the process of goal setting. The role of participation in a goal setting process is as follows:
- Increases commitment among the employees towards achieving the goals.
- Increases the level of job satisfaction among employees.
- Reduces the level of stress among the participants.
- The participant can identify him or herself with the organizational goals.
- Improves the level of performance of the employees.
- Provides the employees with higher level of environmental control.

Question 3

Describe Locke and Latham's goal-setting model.

Answer 3

Goal setting is the process of setting up a predefined objective or goal for the organization to achieve. A goal must be SMART i.e. specific, measurable, achievable, realistic and timely.
The Locke Latham's goal setting theory states the following:
- A relation exists between the difficulty of a goal and the individual's performance.
- Specific and difficult goals result into better performances.
- The goal must be very much clear.
- The goal that has been set must be challenging in nature.
- The goal set to be achieved will require large amount of dedication and commitment from the employees.
- A proper feedback should be given to the employees regarding their performance in goal attainment.
- Complex tasks if required for attainment of the goal should be taken care of and performed carefully.

Question 4

What are the typical steps in an MBO program?

Question 5

Compare and contrast the factors that make for successful and unsuccessful MBO programs.