Rider & Co. is a distributor. One of its corporate goals is to increase employee productivity by 8 percent. Using this example, explain how goal-setting theory works.
What will be an ideal response?
Goals that are specific and difficult lead to higher performance than general goals like "do your best" or "improve performance." Certain conditions are necessary for goal setting to work. Performance feedback and participation in deciding how to achieve goals are necessary but not sufficient for goal setting to work. Goal achievement leads to job satisfaction, which in turn reinforces employees to set and commit to even higher levels of performance. There are four mechanisms that fuel the power of goal setting.
1. Goals direct attention.
2. Goals regulate effort.
3. Goals increase persistence.
4. Goals foster the development and application of task strategies and action plans.
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