Organisational Behaviour Goal Setting Theory

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Introduction
A goal is a target, and a target is set to be achieved. Everyone has their own goals in life; the goal of a student is to do well in their exams and to gain knowledge. A footballer’s goal is to score by putting a ball into the net within 90 minutes of play. Even animals has goals too, a tiger’s goal is to hunt for food. Goal setting has been a part of everybody’s life since ages ago. Setting of goals and targets by companies to strive for achievement is a fundamental to business survival and success (Shi et al. 2010, 86). Be it, achieving a profit of 30% in the fiscal year or improving skills and behaviors of their employees, goal setting has been an essential item in every firm. Other than identifying the target and achievement of the company, goal setting is also used to motivate employers, as well as employees to succeed. Goal-setting Theory and Work Motivation

What is goal-setting? Goal-setting is used to motivate both employers and employees. Other than that, it is an essential tool to clarify and to identify the roles and perception of the organization by the implementation of performance objectives which would improve work performances as well as job satisfaction. In other words, goal-setting is the process of setting work related goals and objectives as well as aligning the individual and organizational goals (Nickols 2007, 5). According to McShane et al (2010), goal-setting is the process where employees are motivated towards their own organizational responsibility and perception by setting performance objectives. Motivation comes in many form, it can come in monetary form, a job promotion or any other method where employees can be initiated to work towards their limit to achieve something. Work motivation is the driver to an organization’s performance (Dwivedula and Bredillet 2010, 158). Work motivation includes the theories of motivation which includes McClelland’s theory of needs, equity theory, goal-setting theory and the job characteristic model. Other than these 4 theories, there are several other more theories which would be able to contribute to the work motivations.

S.M.A.R.T
In order for managers to set effective goals, they must first construct them. There are 5 features in creating an effective goal; these 5 features are called SMART in short. SMART stands for Specific, Measurable, Attainable, Realistic and Time Frame (Latham 2003, 311). Specific brings the meaning of precision. Goals set should be precise and specific. They should be clear to the main point and does not include vague targets. When set goals are specific, it is easy and convenient to hold someone accountable for their achievement (Shahin and Mahbod 2007, 226). Goals must be measurable in the form of qualitative or quantitative. Other than that, measurement should be in opposition of a standard performance as well as standard of expectation. Take for example, a businessman’s target to earn 25% profits in the specific fiscal year. Other than that, goals should be attainable and never out of reach. Poor performance occurs as goals assigned are unreachable and impractical. In order for a person to feel confident and successful, goals should be assigned and be made attainable rather than unattainable because this will cause a person to lose motivation toward their job (Greenberg and Baron 1995, 135). Goals assigned should also bear realistic qualities. Similar to attainability, realistic goals normally lead to attainable goals which can motivate and spur interest among employees in an organization. The last feature of creating an effective goal is the time frame. Set goals should have a fix and assigned time due for completion and achievement, it is simply beneficial to have a time frame in order to monitor performance and progress of the employees. Other than that, with the implementation of a time frame allows an individual to measure success as well as achieving the set targets. In addition to that, setting a...
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