OB lecture 26 goal setting feedback and equity theory 2

elements of a good goal setting Specific Goal 2. Relevant Goal 3. Challenging Goal 4. Goal participation Management by objectives Supported by McGregor and Drucker Supervisor and subordinate define keys tasks and objectives. Set objectives to be realistic, challenging, clear, and comprehensive. Establish criteria for assessing accomplishment of objectives. Review Intermediary progress, modification if necessary Final evaluation and next objectives

Lecture 26

Contemporary Motivation Theory 2

Goal Setting, Feedback and Equity Theory

Is ‘Goal Setting’ is also a motivation theory

Yes

Goal Setting TheoryFeedback Theory And they are related to ‘Expectancy Theory”

Goal Setting Theory

Original work

Edwin A Locke, “Toward a Theory of Task Motivation and Incentives”, Organizational Behaviour and Human Performance, May

1968, pp 157 - 189

“Endnotes or footnote” referencing – given Name first

“Grounded Theory”

Goal Setting is supported by empirical data

A Good Goal Setting is SMART

Elements of Good Goal Setting

1 Specific Goal

2 Relevant Goal

3 Challenging Goal

4 Goal participation

Relevant Goal

Goal must be relevant to the individual’s job

and within his or her control

<-SMART

However, it must not be so challenging that

it is too difficult that employees loose

Motivation to achieve it.

Goal Participation (sometimes)

Goal setting is usually (but not always)

effective employees participate in setting The goals It improve commitment and

goal quality

However, it is not always…

MBO

Application of Goal Setting Theory

MBO – Management by Objectives

Elements of MBO

• Specifying Goals

• Participation in decision making

• Explicit Time frame

• Performance feedback

Management by Objectives

Supported by McGregor and Drucker

1 Supervisor and subordinate define keys tasks

Influencing

1 The principle of Reciprocation

2 The principle of Social Proof

3 The principle of Liking

4 The principle of Commitment and

Consistency

5 The principle of Authority

6 The principle of Scarcity

Why MBO works

Principle of Commitment and Consistency People want to be consistent

Authority Motivation Influence

Use of power

Feedback is the key to

performance

Peter F Drucker

Feedback is effective when

• clarify role perception

• Specific and relevant

• Sufficient frequent

New task should receive more frequent feedback

Less frequent on task with long cycle time

Feedback Through

Strength-Based Coaching

Focusing on strength

Helping employees to leverage his or her strengths.

People inherently seek feedback about their strengths, not their weaknesses.

Personality becomes quite stable after mid-career, limits flexibility of a person’s interests, preferences, and

competencies

Social and Non-social Sources

Non-social Sources

e.g computer printout, good for feedback

on specific progress toward accomplishment

Objection to Evaluation

(Appraisal)

• Focus too much on alleviating symptoms

of poor performance

• Managers and employees dislike the

evaluation process Raters especially have problems with reaching decision about

performance level of employees

• Employees who are not evaluated in the top performance category experiences a reverse motivation effect They slow down

Customers

360 degree Feeback

It is usually anonymous

and on-line

360 degree feedback

Collecting performance appraisal from 360

feedback can be time consuming

e.g 400 staff, average each staff has 12

colleagues, superior, and subordinates (i.e 12 raters) 20 minutes to do appraisal

Total time for collection: 400 x 12 x 20 =

96,000 minutes, or 1,600 hours, or 200 days

1 year salary of a staff = > RMB100,000.

360 degree Feeback

Jack Welch on 360 degree feeback Horse ass

Like all peer system,

it can be ‘gamed over’

360 Feedback

My experience on peer appraisal

Officer Cadet School

One – off (we will not see each other again)

9 Equity Theory

It is very well researched (in Hoa Ki) and

quite successful at predicting outcomes

Employees determine feelings of equity bycomparing their own outcome/input ratio of some other person,

Equity Theory

Oa

I a <

Ob Ib

If A and B do the same work, and A getsLess pay than B, what will be the reaction

of A

He or She May

1 Reduce our input – work slowly

2 Increase outcome – ask for pay increase

3 Increase the comparison’s input

(ask comparison to do more work)

4 Reduce the comparison outcome

(ask company to reduce comparison’s pay

5 Change our perception His job is not that great

6 Change comparison

7 Leave the field

A company should take care of both

Evaluate the impact of technology on teamfunctioning within a given organization

1 The Shipping Industry Accounting Team

2 People Developer University

The Shipping Industry

Accounting Team

I Boston

Monthly ReportStrategy

No common time

Brad does not answer email

Susan and Brad – email quarrelSpent a lot time

Which outcome this essay addresses

Technology makes virtual team possible

How to overcome problems associated with technology

31 December 20104pm

Hop