Goal Setting “When you set a goal, you create something and it becomes real. You write it down You focus on it. You aspire to it, and that’s your motivation.” (Scott Grocki: 167)

Effective Goal Setting Techniques Consider the level of difficulty “More difficult” goals increase energy level Consider the level of specificity Specific goals increase your ability to focus and to measure your progress Employee participation in the goal setting process Increases the level of acceptance and commitment Long-term and short-term goals Yearly, monthly, weekly, & daily

MBO: Cascading of Objectives Organizational Objectives The XYZ Company Divisional Objectives Consumer Products Industrial Products Departmental Objectives Production Sales Customer Service Marketing Research Development Management by objectives (MBO) emphasizes participation to set goals that are tangible, verifiable, and measurable. MBO’s appeal lies in its emphasis on converting overall organizational objectives into specific objectives for units and members of the organization. As the figure above shows, the organization’s overall objectives are translated into specific objectives for each succeeding level (divisional, departmental, or individual) in the organization. But because lower-unit managers jointly participate in setting their own goals, MBO works from the “bottom-up” as well as from the “top down.” The result is a hierarchy that links objectives at one level to those at the next level. And for the individual worker, MBO provides specific personal performance objectives. So each person has an identified specific contribution to make to his or her unit’s performance. If all individuals achieve their goals, then their unit’s goals will be attained and the overall objectives of the organization will become a reality. Individual Objectives Prentice Hall, 2001 Chapter 7

Sears Auto Repair What went wrong? What lessons should be learned? Why? What lessons should be learned?