GOAL SETTING THEORY:

Goal setting theory was born out of Aristotle’s theory of final causality and then
researched in greater detail by Edwin A. Locke in the 1960s to understand how goals
can influence an individual’s performance. The basic theory behind goal setting is that
human behavior is galvanized and governed by goals and ambition. Today, goal setting
theory is very important not only for those studying organizational psychology, but for
anyone seeking to increase productivity, enhance performance and reach for greater
heights of success. Goals are able to motivate and spur you to meet your ambitions
because it helps you focus your efforts on that objective. Every objective we have
requires a list of tasks to be executed. By setting goals, we’re able to persist with the list
of tasks and are compelled to develop strategies in order to reach our objective. The
incredible results achieved with the goal setting theory explain why it’s not just colleges,
universities and sports institutions that use it to obtain results, but in businesses too
where survival is based on ensuring positive outcomes.

Having objectives is not the issue, but striving to attain them is. Following are the points
that help you to achieve goals:

· State your goals in specific terms. Understand what your goals are and know
why you’re selecting these goals.

· Make your goals attainable. There is no point setting goals you believe are
unattainable. The best way to do this is to break your goals down into actionable
steps.
· Measure your goals. Set a timeframe, or a milestone that can put the pressure
on you to meet your objectives.

ANALYSIS:

To what extent you and your colleagues feel that the company sets challenging goals for
itself and expects quality performance and outstanding production?

When we asked the question relating to goal setting theory from employees of Haier in
general we got responses which led us to decide that employees wanted to decrease
the standard of goals set for them by management. But after the thorough analysis of
individuals we found about 72% employees who were satisfied with the standards of
goals set for them and not only this some them wanted to improve standards of goals
with little difference according to our provided scale. The rest of 28% employees feel to
decrease the standard of goals.

Now the question arises why in general the answer was different instead of having
majority satisfied with the standards. The reason is that those 32% employees who
wanted to decrease the standard marked greater difference on the scale we provided
which affected the final result but the analysis shows that the majority is satisfied with
standard of the goal sets for them.

But very few of the employee’s answers led us to decide that employees wanted to
decrease the standard of goals set for them by management.

But too much difficult goals can also de-motivate many employees. Company should set
there goals that there employees expect to achieve.

EMPLOYEE INVOLVEMENT PROGRAMS:

A participative process that uses the entire capacity of employees and is designed to
encourage increase commitment to the organization success. Employee involvement
programs include the following.

· Participative management

· Representative Participation
· Quality circles

· Employee Stock Ownership Plans.

Participative Management:

An open form of management where employees have a strong decision-making role.

Participative management is developed by managers who actively seek a strong
cooperative relationship with their employees. The advantages of participative
management include increased productivity, improved quality, and reduced costs.

ANALYSIS:
To what extent you and your colleagues feel that you can make decisions and solve
problems without checking with your managers?

We asked the question from the employees to what extant you and your colleagues feel
that you can make decisions and solve problems without checking with your managers?
Basically this question is related to participative management that is one of the types of
employee’s involvement program to increase the involvement of employee in decision
making process. After analysis of the questionnaire we found that the current
participation level in Haier is 48% this shows that the employees are authorized to make
decisions for routine works or in normal situations but not in critical situation. However,
the rating scale in our questionnaire suggests that employees wanted to be trusted and
allowed to make decision to further extent by 20% more. Participative program are also
very helpful to increase the moral high and productive of the employee. In participative
management employees are the trusted by the management and also increase the
management confidence on their employees. Participation increases commitment to
decision. Employees are less likely to undermine a decision at the time of
implementation if they share in making that decision and participative management
makes employees job more interesting and meaningful to them and participative
management increased productivity, improved quality and reduced costs.

MOTIVATION:

The process that accounts for an individual, intensity, direction and persistent efforts
towards attaining a goal.

Reward system:

The only way employees will fulfill your dream is to share in the dream. Reward
systems are the mechanisms that make this happen. "However, reward systems are
much more than just bonus plans and stock options. While they often include both of
these incentives, they can also include awards and other recognition, promotions,
reassignment, non-monetary bonuses (e.g., vacations), or a simple thank-you.

ANALYSIS:

We asked the question related to rewards that how rewards motivate employees in
Haier and we found that there are different kinds of rewards Haier gives to their
employees which are as follows:
 · Cash Bonuses

· Promotions

· Make team leader

· Increment in salaries

· Allowances like (Fuel allowance, mobile allowance)

We found one very different kind of reward in Haier that they motivate their employees
whose performance is not up to the mark by giving them the salaries equivalent to the
market value of the any other employee of same rank so as to motivate their employee.

We asked the question from the employees related to reward system that to what extent
they are being recognized and rewarded on their good performance and how these
rewards motivate them to work. We ascertained that most of the employees in Haier are
satisfied but very few of employees showed that there are not rewarded for their
performance but the overall result is positive and this shows the level of motivation
employees get from rewards. Many of the employees told us they are being rewarded
after accomplishment of their sales target in such a way that their management take
them to the picnic or invite them for dinner and the rewards like picnic and dinner from
Haier’s management is being rewarded most frequently.

And other very interesting thing which we found in Haier is that their management
doesn’t fire their employees even their performance level is not up to the standard of the
company. For example if an Haier’s employee continuously does not achieve its target
for the period of three months the management does not fire that employee and we can
say that this is kind of surety from Haier’s management to its employees and this kind of
relaxation motivate employees a lot and employees secure and they are not always
threaten from their management to achieve sales target.

Here we also want to share that in Haier we did not find the employee recognition
programs like (employee of the year, employee of the month) and we feel that this kind
of recognition program can also increase the level of motivation and productivity of
employees of Haier.

But in whole we discover that the employees of Haier are very much satisfied from
rewards that are being given to them and the rewards in Haier is based on the
performance of the employee except one that we mentioned above and in Haier most
of the rewards are given to employees are of monetary nature and Management of
Haier continuously appreciates the good work done by the employees for the
achievement of goals, which motivate the employees to worker harder for the
achievement of goals.

LEADERSHIP STYLES:

From Quaid-e-Azam to Jack Welch and Martin Luther King to Rudolph Giuliani, there
are as many leadership styles as there are leaders. Fortunately, business people and
psychologists have developed useful, shorthand ways of describing the main leadership
styles that can help aspiring leaders to understand and adapt their own styles and
leadership impact.

Whether you are managing a team at work, captaining your sports team or leading a
major corporation, you leadership style is crucial to your success.

10 of the most frequently talked-about leadership style are as follows:

1. Autocratic leadership
2. Bureaucratic leadership
3. Charismatic leadership
4. Democratic leadership or Participative leadership
5. Laissez-faire leadership
6. People-oriented leadership or Relations-Oriented leadership
7. Servant leadership
8. Task-oriented leadership
9. Transactional leadership
10. Transformational leadership

We asked different questions relating to the leadership style from Haier employees to
know which leadership style their leader uses and we found that two of the leadership
styles that are task oriented and people oriented or relations-Oriented. The results we
got from employees of Haier that 53% of the employees feel that their managers are
relationship oriented leaders and remaining 47% feels that their managers are task
oriented leaders so this shows that the Haier has got the combination of leaders that
are task oriented and relationship oriented. This shows that Haier have the leaders that
perform better in all situations and can manage their teams more effective in favorable
conditions and also in very unfavorable conditions.
PATH GOAL THEORY:

House’s PATH GOAL THEORY describes how leaders can motivate their followers to
achieve group and organizational goals and the kinds of behaviors they can engage in
to accomplish that Path Goal theory suggests that effective leaders follow three
guidelines to motivate their followers. The guidelines are based on the expectancy
theory of motivation. Effective leaders who follow these guidelines have highly
motivated subordinates who are likely to meet their work goals and perform at high
levels.

Determine what outcomes subordinates are trying to obtain in the workplace. For
example, what needs are they trying to satisfy, or what goals are they trying to meet?
After gaining this information, the leader must have control over those outcomes or over
the ability to give or withhold the outcomes to subordinates.
Reward subordinates for performing at high levels or achieving their work goals by
giving them desired outcomes.
Make sure the subordinates believe that they can obtain their work goals and perform at
high levels. Leaders can do this by showing subordinates the paths to goal attainment
(hence the name path goal theory), by removing any obstacles that might come along
the way, and by expressing confidence in their subordinates capabilities.

House identified four types of behavior that leaders can engage in to motivate
subordinates:

· Directive behavior (similar to initiating structure) lets subordinates know what

tasks need to be performed and how they should be performed.

· Supportive behavior (similar to consideration) lets subordinates know their

leaders cares about their well-being and is looking out for them.

· Participative behavior enables subordinates to be involved in making decisions

that affect them.

· Achievement-oriented behavior pushes subordinates to do their best. Such

behavior includes setting difficult goals for followers, expecting high performance,
and expressing confidence in their capabilities.
ANALYSIS:

We designed a different questionnaire especially for the TOP MANAGEMENT OF Haier

and the questions were related to PATH GOAL THEORY as the questionnaire belongs
to the top management so we asked four top level managers of Haier to fill this
questionnaire list of their names and designation are given below:
By studying our questionnaire we found different behaviors of leadership and there
contribution in the organization’s behavior. We found different results for each behavior
after analyzing the answers of our respondents which are given below:

Directive Leaders Behavior:

The most contributive behavior in leadership behaviors in having 27% share in

leadership behavior was found to be directive behavior which is being frequently used in
the organization we targeted. The benefit of using directive form of leadership which

is characterized by greater control, defining what needs to be done, allocating resources

and establishing clear expectations.
The directive leadership behavior takes a more pragmatic approach to handling affairs
in Haier and is characteristically utilized in corporate turn-around situations.

Supportive Leaders Behavior:

The second most contributory behavior in leadership behaviors in Haier having 26%
share in leadership behaviors was found to be supportive behavior the results obtained
shows that supportive behavior used in Haier is almost the same as the use of directive
leadership behavior with having difference of only 1% which is not a very big figure.

Participative Leaders Behavior:

Participative leadership behavior is the least used behavior in Haier’s culture with
having 23% this shows that the Haier leaders do consult with their subordinates while
making a decision but at low frequency as compared to other PATH GOAL leadership
behaviors.

Achievement Oriented Leaders Behavior:

The third most contributory behavior in leadership behaviors in Haier with having
percentage of 24 this shows that the leaders of Haier set challenging goals for their
subordinates with low frequency but they expect from their employees to perform at
their highest level.
The results of our analysis shows that there is no such big difference in leadership
behaviors used in Haier and this is a very good sign for Haier that their leaders manage
their subordinates according to different situations with different leadership behaviors.

NORMS:

“Norms are shared group expectations about behavior and how members ought to
behave.”
Norms provide groups with control and predictability and give members a sense of
security and comfort. Norms are also the way we express values, attitudes and beliefs.
Norms put boundaries on members that may be narrow or wide.

Many norms in organizations originate from management expectation or from work rules
and procedures of the formal organization. They develop and operate in informal
groups. Many central work group norms revolve around productivity. Norms can put
lower and upper limits on productivity. Controlling productivity not only spread the work
ought to more people for a longer period, but also prevents management from rising its
expectation.
Some organizations have norms emphasizing social concern for employees this norm
foster taking care of people who needed or other wise contributing to the quality of an
employee’s life at work. Management can foster many norms that contribute to
organizational success, such as norms effecting work quality, helpfulness or customer
relation. A norm of secrecy may be critical to keep competitors from stealing ideas.

ANALYSIS:

Norms are of four types. The one we quire about is social norm. The reason of selecting
social norm is that our culture is based on collectivism so the importance of social
norms is very high. The situation of norms in Haier’s culture is fair enough according to
the result of our questionnaire most of the employees follows the norms set by the
organization and they are satisfied with them, but we found some employees who are
willing to improve the conditions i.e. norms the calculated value of there willingness is
about 25%. The major factors of social norms are friendliness, trust and mutual support.
According to the employees in Haier the conditions of trust and friendliness are pretty
good and they are willing to increase mutual support.

It is necessary to emphasize on social arrangement norms in country like Pakistan

because of its collectivism culture and these norms helps the organization to get the
participation of their employee in positive manner to achieve the goals set by the
organization these kind of norms also motivates the employees to remain in
organization because of friendly culture in organization social arrangement norms also
helps the employees to interacts with each other in more friendly manner which will
increase trust among them and with there top management.

If these norms are valued by the management then it will positively affect employee
satisfaction and productivity and it will also enhance the organization culture.

CONFORMITY:

“Conformity can be defined as a change in a person’s behavior or opinions as a result of

real or imagined pressure from a person or a group of people”.

Who does Conformity affect?

Conformity can affect people in all different ways, positively and negatively.
In task-specific situations, those who are led to believe they do not have the required
aptitude, their tendency to conform increases.
Individualistic societies are less likely to conform than collectivistic.

How does Conformity work?

An individual will most likely conform if:

The majority consists of experts

The members of the majority are important to the individual
The individual can relate to the majority on some level--there are similarities
between the individual and the group
ANALYSIS:

Through our questionnaire we analyzed the pattern of answers given by employees

and we found many similar answers in regard of questions and it shows greater extend
of conformity among employees of Haier as they have almost marked similar options
given in each questions of our questionnaire. The level of conformity shows there good
relations and understanding with each other which also shows that they will not leave
each other in hard times but on the other hand the high level of conformity indicates the
danger of employees saying always yes to other’s decision instead of thinking critically
about it and there might be a chance of employee saying yes under pressure in the
fear of loosing group and may result in loss of any useful idea.

After Asch’s study about conformity, in the world the conformity is decreasing as the
level of knowledge and awareness are increasing and the result of our questionnaire
shows high level of conformity, we can suggest the reason “collectivism culture of
Pakistan”

CONCLUSION:
After studying and a analyzing the results of our research on the various issues related
to the organizational behavior within the organization that are affecting the performance
of its management and particularly its employee, followed by several general and
specific list of questions we asked and the interviews we conducted during our visit to
the Haier, we are able to draw out our conclusions about this report.

Haier is a global bank which is also operating in Pakistan. The organization behavior
regarding goal setting for employees we have concluded that the management of Haier
is effective in setting goals according to the competition in the industry sector of
Pakistan. As the requirement of growing industry sector it is necessary to set
challenging and effective goals so as to become market leaders. Despite of setting
challenging goals the employees of Haier are satisfied with these challenging goals and
performing well to achieve the goals which were provided to them.

The management style in Haier is kind of participative management in which employees

are given chance to share their ideas for decision making so the Haier is utilizing its
employees by getting different ideas from different employees this provides greater
chances for getting better and innovative ideas. Not only this but from this activity
employees feel motivated because they think they also have the authority in decision
making process and they are also a part of an organization. During the interview of
manager of Haier, he told us “All the employees here are given title of relationship
officer rather than any other designation and at the beginning of each month the top
level management visits every branch and arrange meeting with all the employees of
the branch and discuss the problems faced by every employee and immediately tries to
resolve the problem and this is the major motivating factor for us”. For motivating their
employees management uses different types of motivating tools the innovative ones we
found are ESOP (Employees Stock Ownership Plan) and the pay plan for less
productive workers. By providing ESOP the employees gains the ownership of an
organization and work hard not only for their benefit but also to maximize the profit of
the organization. The next thing about the pay plan for less productive workers the
company motivate their employees whose performance is not up to the mark by giving
them the salaries equivalent to the market value of the any other employee of same
rank.

As the motivation and reward systems are up to the expectation of the employees so
the employees are very much satisfied and don’t want to leave the organization.

The leadership styles in Haier are mixture of both the task oriented and relationship
oriented but it is little lien towards relationship oriented leadership style. The leader’s
behavior consisting of all the leaders’ behavior provided by House’s Path Goal Theory
having almost same percentages with very low variation.

Overall we concluded Haier inherits strong organizational culture having values for
leaders and as well as for employees and the organization behavior is up to the mark
for any company being in Pakistan.

RECOMMENDATION:

Haier should offer training and development sessions for undergraduates; this will help
Haier in future while recruiting employees.

Haier should reduce conformity by giving rewards to employees for suggesting more
effective idea in the benefit of the organization this will not only provide wider range of
ideas but also act as a motivational tool for their employees.
Haier should arrange extra curricular activities like cricket matches on inter level to
further improve relations between employees as other organizations are organizing (for
example ABN Amro, Mobilink, etc.)

Haier should introduce “Dress-Down” day i.e. employees should be given permission to
wear dresses other than formal dresses on certain days so as to make them relaxed
while work.