Motivation and Goal Setting Theory

Motivation & Goal Setting Theory

by Jennn Fusion

The motivation and goal-setting theory research of Dr. Edwin A. Locke is widely regarded among the top management theories. Small businesses can learn a lot from his principles of motivation and goal-setting theory. Without the most basic goals, employees wouldn't show up for work or see a purpose in holding a job. The management team that helps employees set more complex and effective goals could boost performance and profits beyond their wildest expectations.

History of Goal Setting Theory

American psychologist Edwin Locke from the University of Maryland at College Park has studied the power of goal setting since the late 1960s. He first posited that employees were motivated by goals and feedback in his 1968 article "Toward a Theory of Task Motivation and Incentives." He later fine-tuned his perspective to include that the difficulty and specificity of the task also was a good predictor of performance. In other words, if the goal was too easy, the motivation wasn't as compelling. Along with Dr. Gary Latham, Dr. Locke published his groundbreaking work in 1990 in a book called "A Theory of Goal Setting and Task Performance," which frequently is cited by business administrators, Ph.D. students, lecturers and associate professors around the globe.

Basic Principles

The key points that Locke and Latham made were that motivational goals needed to have the following dimensions: clarity, challenge, commitment, feedback and complexity. Goals need to be clear and measurable such as: My goal is to reduce maintenance downtime by 15 percent. Secondly, goals must be challenging, with achievement as the final payoff. Thirdly, employees must feel like part of the goal-setting process to be committed to a clearly relevant goal. Next, there must be a program that involves feedback, recognition and progress reports. Lastly, the task must be complex but not overwhelming, with sufficient time and resources available.

Practical Application

Theories are nice, but what does all this mean to you, small business owner or manager? Consider how a company such as Moog, a manufacturer of precision air control components, has built its corporate culture around motivation and goal-setting theory. Moog credits its success with a "culture that unites and motivates" its workers. During their first days with the company, new interns sit down with management to discuss job expectations, skills and aspirations. All employees receive one-on-one time with managers for regular progress reports. Their performance is assessed and they are asked for suggestions regarding process improvement. They go over upcoming job openings that might suit the company and the individual's agenda. Employees are frequently trained in other divisions and offered different positions or promotions. In other words, employees are always being challenged with complex tasks and encouraged with clear feedback.

Source: http://smallbusiness.chron.com/motivation-goal-setting-theory-1187.html