The MBO process emphasis as a way of building worker commitment to goal accomplishment

In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation.

This theory states that goal setting is essentially linked to task performance.

It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.

In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in.


The important features of goal-setting theory are as follows:

  • The willingness to work towards attainment of goal is main source of job motivation. Clear, particular and difficult goals are greater motivating factors than easy, general and vague goals.
  • Specific and clear goals lead to greater output and better performance. Unambiguous, measurable and clear goals accompanied by a deadline for completion avoids misunderstanding.
  • Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains them, and sets him up for attainment of next goal. The more challenging the goal, the greater is the reward generally and the more is the passion for achieving it.
  • Better and appropriate feedback of results directs the employee behaviour and contributes to higher performance than absence of feedback. Feedback is a means of gaining reputation, making clarifications and regulating goal difficulties. It helps employees to work with more involvement and leads to greater job satisfaction.
  • Employees’ participation in goal is not always desirable.
  • Participation of setting goal, however, makes goal more acceptable and leads to more involvement.

Goal setting theory has certain eventualities such as:

  1. Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he has potential of performing the task. Higher the level of self-efficiency, greater will be the efforts put in by the individual when they face challenging tasks. While, lower the level of self-efficiency, less will be the efforts put in by the individual or he might even quit while meeting challenges.
  2. Goal commitment- Goal setting theory assumes that the individual is committed to the goal and will not leave the goal. The goal commitment is dependent on the following factors:
    1. Goals are made open, known and broadcasted.
    2. Goals should be set-self by individual rather than designated.
    3. Individual’s set goals should be consistent with the organizational goals and vision.

Advantages of Goal Setting Theory

  • Goal setting theory is a technique used to raise incentives for employees to complete work quickly and effectively.
  • Goal setting leads to better performance by increasing motivation and efforts, but also through increasing and improving the feedback quality.

Limitations of Goal Setting Theory

  • At times, the organizational goals are in conflict with the managerial goals. Goal conflict has a detrimental effect on the performance if it motivates incompatible action drift.
  • Very difficult and complex goals stimulate riskier behaviour.
  • If the employee lacks skills and competencies to perform actions essential for goal, then the goal-setting can fail and lead to undermining of performance.
  • There is no evidence to prove that goal-setting improves job satisfaction.



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journal article

Ordinary MBO appraisal process far from being a constructive technique, raises great psychological issues

The Journal of Nursing Administration

Vol. 10, No. 9 [September 1980]

, pp. 22-30 [9 pages]

Published By: Lippincott Williams & Wilkins

//www.jstor.org/stable/26815376

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​JONA™ is the authoritative source of information on developments and advances in patient care leadership. Content is geared to nurse executives, directors of nursing, and nurse managers in hospital, community health, and ambulatory care environments. Practical, innovative, and solution-oriented articles provide the tools and data needed to excel in executive practice in changing healthcare systems: leadership development; human, material, and financial resource management and relationships; systems, business, and financial strategies. All articles are peer-reviewed, selected and developed with the guidance of a distinguished group of editorial advisors.

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Wolters Kluwer Health is a leading provider of information for professionals and students in medicine, nursing, allied health, pharmacy and the pharmaceutical industry. Major brands include traditional publishers of medical and drug reference tools and textbooks, such as Lippincott Williams & Wilkins and Facts & Comparisons; electronic information providers, such as Ovid Technologies, Medi-Span and ProVation Medical; and pharmaceutical information providers Adis International and Source®. Wolters Kluwer Health is a division of Wolters Kluwer, a leading multi-national publisher and information services company with annual revenues [2005] of €3.4 billion and approximately 18,400 employees worldwide. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its depositary receipts of shares are quoted on the Euronext Amsterdam [WKL] and are included in the AEX and Euronext 100 indices.

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How does MBO help to motivate individuals in an Organisation?

Management by Objectives Management by Objective is a response to the goal-setting theory as a motivator. The goal setting theory has an impressive base of research support, and MBO makes it operational. As a reminder, MBO sets individual goals for employees based on department goals, which are based on company goals.

Is the process of developing negotiating and formalizing the targets or objectives that a person is responsible for accomplishing?

- Goal setting is the process of developing, negotiation, and formalizing performance targets or objectives.

How goals are important to motivation by using the goal setting theory?

Advantages of Goal Setting Theory Goal setting theory is a technique used to raise incentives for employees to complete work quickly and effectively. Goal setting leads to better performance by increasing motivation and efforts, but also through increasing and improving the feedback quality.

Which one of the following is the first step in MBO?

The first step is to either determine or revise organizational objectives for the entire company. This broad overview should be derived from the firm's mission and vision. Step three is stimulating the participation of employees in setting individual objectives.

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