3 Functions of Goal Setting

1. Increasing Work Motivation

and Task Performance

 Goals are often used to increase

employee effort and motivation,
which in turn improve task
performance.
 3 Functions of Goal Setting

2. Reducing Role Stress of Conflicting

and Confusing Expectation

 Improved role clarity leads to

improved communication between
Managers and employees
 Important to reduce role stress
connected with conflicting and
confusing expectations.
 3 Functions of Goal Setting

3. Improving the accuracy and validity

of performance evaluation

 Improve the planning through

developing operational plans in
support of the corporate goals and
assessment on how employees or
departments perform their expected
job.
 3 Functions of Goal Setting

3. Improving the accuracy and validity

of performance evaluation

 The best method is Management by

Objectives (MBO)
 MBO involves joint goal setting
between employees and managers
Management By Objective

 Clarifies what is expected of

employees, provides knowledge of
results and provides opportunity for
coaching and counseling by the
managers
Performance : A key construct

Goal setting is designed to improve

work performance, an important
organizational behavior directly related
to production of goods or delivery of
services

Outcomes and effort are important for

good performance
Defining Performance

Performance must be clearly defined

and understood by the employees who
are expected to perform well at work. It
is a prerequisite to measuring and
evaluating performance on the job.

Each specific job requires definition of

skills and behaviors necessary to
superior performance.
Performance Appraisal

 A process of evaluating the

performance of workers in relation to
the objectives of the organization.
 Provides basis for rewards,
promotions, transfers and basis for
training and development
opportunity.
 Major Uses of Performance Appraisal
1. Feedback to employee
 Response or informing employee on how well they are
performing.
2. Self-development
 Employees learn about their strengths and weaknesses
thus begin self-improvement programs
3. Reward Systems
 Form as bases for incentives.

4. Personnel decisions
 Employers/ managers can evaluate the employees’
talents, ability and weaknesses
5. Timing and development
 Managers can measure the skills that is lacking so that
new or revised training programs can be develop
Performance Feedback: A Communication
Challenge

A response or informing employee on

how well they are performing.
PEOPLE ARE NOT PERFECT and there is
always an opportunity for them to learn and
grow through performance feedback
session
Feedback can be positive or negative
Developing People and Enhancing Career

A key function of a good performance

appraisal system is to develop people and
enhance career. Emphasis should be in
individual growth needs and future
performance

Supervisors must coach and develop

employees effectively, there must be a
mutual trust and must be an concerned
listener to encourage employees to talk
about hopes and aspirations
 Rewarding Performance

 To provide input for reward decision

 Reward decision are among the most
difficult, complicated and important
decisions made in organizations
 If organization wants good performance,
then it must reward good performance
 Leaders should know the myth that
“people work for money” because trust,
fun and meaningful work are
performance value.
 Key Organizational Decision Process

Rewards and punishment decisions in

organizations affect many people
throughout the system

These decisions shape the behavior of

everyone in the organization.
Individual versus Team Reward System

Strength of Individual Reward System:

Promote autonomous and independent
behavior that may lead to creativity and
distinctive contributions to the organization

Directly affect individual behavior and may

encourage competitive striving within a work
team
Disadvantage:
Too much competition within a work
environment may be dysfunctional
Individual versus Team Reward System

Strength of Team Reward System:

Team reward system solve the problems
caused by individual competitive behavior
Emphasis:
Cooperation, joint efforts, sharing of
information, knowledge and expertise
 Correcting Poor Performance

Poor performance may result from different

causes: poorly designed work system, poor
selection process, inadequate training and skills
development, lack of personal motivation and
employees anger, conflict with the organization
or Supervisor
Treat poor performance as symptom with a
deeper cause.
 3 Step Process in Correcting Poor
Performance

1. Primary cause for the poor performance must

be identified;
2. Determine the source of the personal problem
if the primary responsible is the person;
3. Develop a plan of action to correct the poor
performance