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CHAPTER 6

MOTIVATING EMPLOYEE PERFORMANCE THROUGH REWARDS

Goal Setting and Motivation

Goal Setting is a very useful method of enhancing employee performance. From a motivational perspective, a goal is meaningful objective.

Goals are used for two purposes in most organization.

▪ They provide a useful framework for managing motivation.

▪ Goals are effective control device (control meaning the monitoring by management of how well the organization is performing.

Goal Setting-Theory

Edwin Locke’s goal setting theory of motivation assumes that behavior is a result of conscious goals and intentions.

In the original version of goal setting theory has two specific characteristic that were expected to share performance.

▪ Goal Difficulty – is the extent to which goal is challenging and requires effort.

▪ Goal Specificity – is the clarity and precision of the goal.

Locke’s attracted much widespread interest and research support from both researchers and managers; so Locked together with Gary Latham, eventually proposed an expanded model of goal-setting process. The expanded model, attempts to capture more fully the complexities of goal setting in organization.

• Goal Acceptance is the extent to which a person acts a goal as his or her own.

• Goal Commitment is the extent to which a person is personally interested in reaching a goal.

Figure: The Goal-Setting Theory of Motivation

Broader Perspectives on Goal Setting

Some organizations undertake goal setting from the somewhat broader perspective of Management by Objectives or MBO.

Management by Objectives is essentially a collaborate goal-setting process through which organizational goals systematically cascade down through the organization.

A successful MBO Program starts with top managers establishing overall goals for the organization.

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