Chapter 7

Insights from Goal Setting

1. Specific high goals lead to greater performance 2. Feedback enhances the effect of specific, difficult goals 3. Participative goals, assigned goals, and self-set goals are equally effective 4. Action planning facilities goal accomplishment 5. Goal commitment and monetary incentives are goal setting outcomes

Expectancy Theory

A model of motivation that states people are motivated to behave in ways that produce desired combinations of expected outcomes - perception plays a central role because it emphasizes cognitive ability to anticipate likely consequences of behavior Measured by expectancy, valence, and instrumentality

4. Action planning facilities goal accomplishment

Action plan - outlines the activities or tasks that need to be accomplished in order to obtain a goal Serves as a cue to remind us of what we should be working on, which was found to lead to goal-relevant behavior and success

Vroom's Theory - Expectancy

An effort --> performance expectation An individual's belief that a particular degree of effort will be followed by a particular level of performance An expectancy of zero indicates that effort has no anticipated impact on performance

Vroom's Expectancy Theory

Effort --> performance and performance --> outcome Expectancy, instrumentality, valence

Practical Approach to Goal Setting: Step 2

Employees are more motivated to pursue goals they view as reasonable, obtainable and fair

5. Goal commitment and monetary incentives are goal setting outcomes

Goal commitment - the extent to which an individual is personally committed to achieving a goal An individual is expected to persist in attempts to accomplish a goal when eh or she is committed to it Moderates the relationship between the difficulty of the goal and performance

1. Specific high goals lead to greater performance

Goal specificity - pertains to the quantifiability of a goal People are more likely to accomplish goals that are perceived as attainable

How does goal setting work?

Goals direct attention Goals regulate effort Goals increase persistence Goals foster the development and application of task strategies and action plans

Equity Theory - Thresholds of Equity and Inequity - Entitleds

Have no tolerance for negative equity. Expect to obtain greater output/input ratios than comparison with others and become upset then this is not the case

Practical Approach to Goal Setting: Step 3

Includes ensuring each employee has necessary abilities, training, technology./equipment and information needed to achieve his or her goals

Equity Theory - Thresholds of Equity and Inequity - Sensitives

Individuals who adhere to a strict norm of reciprocity and are quickly motivated to resolve both negative and positive inequity

2. Feedback enhances the effect of specific, difficult goals

Lets people know if they're headed toward their goals or if they are off course and need to redirect their efforts

Equity Theory

Model of motivation that explains how people strive for fairness and justice in social exchange or give and take relationships

3. Participative goals, assigned goals, and self-set goals are equally effective

No single approach is consistently more effective than others in increasing performance

Equity Theory - Thresholds of Equity and Inequity - Benevolent

People who have a higher tolerance for negative inequity - altruistic in the sense that they prefer their outcome/input ratio to be lower than ratios from comparison with others

Vroom's Theory - Instrumentality

Perfomance --> outcome perception Represents a person's belief that a particular outcome is contingent on accomplishing a specific level of performance

Goals Increase Persistence

Persistence - represents the effort expended on a task over an extended period of time Persistent people tend to see obstacles as challenges to overcome rather than reasons to fail

Vroom's Theory - Instrumentality - Range

Range: -1.0 to 1.0 1.0 = Attainment of a particular outcome is totally dependent on task performance 0 = No relationship between performance and receiving an outcome EX: Linking number of vacation days to seniority, not job performance -1.0 = High performance reduces the chance of obtaining an outcome while low performance increase the change EX: the more time you are studying to get an A on an exam (high performance), the less time you will enjoy leisurely activities and the less time you are studying (low performance), the more time you will enjoy leisurely activities

Equity Theory - Thresholds of Equity and Inequity (Equity Sensitivity)

Reflects an individual's different preferences for tolerances and reactions to the level of equity associated with any given situation Equity sensitivity - changes from benevolent to sensitives to entitled

Vroom's Theory - Expectancy - Influencers

Self-esteem Self-efficacy Previous success at the task Help received from others Information necessary to complete the task Good materials and equipment to work with

Practical Approach to Goal Setting: Step 1

Set goals Input sources: time and motion studies, average past performance, benchmarking, overall strategy of the company

SMART

Specific, measurable, attainable, results oriented, and time bound

Practical Approach to Goal Setting

Step 1: Set goals Step 2: Promote goal commitment Step 3: Provide support and feedback

Valence

The positive or negative value people place on outcomes - mirrors our personal preferences Range: -2.0 (very undesirable), 0 (neutral), 2.0 (very desirable) EX: Positive (2) - receiving additional money EX: Negative (-2) - being laid off

Equity Theory - Components

Two are involved in the employee-employer exchange: Inputs - Education/training, seniority, personality traits, effort expended Outputs - Pays/bonuses, medical benefits, job security, recognition.

Equity Theory - Negative Equity

When a person enjoys greater outcomes than inputs than that of a relevant co-worker

Equity Theory - Positive Equity

When a person's outcome to input ratio is greater than that of a relevant co-worker

Equity Theory - Equity

When a person's ratio of perceived outcomes to inputs is equal to the ratio of a relevant co-worker