The Impact of Goal Setting on Employee Performance
CHAPTER ONE
Objectives Of The Study
The research is aimed at making theoretical and practical contributions to the effective utilization of goal setting in the work place so as to increase workers performance and organization productivity.
However, the study intends to address those areas that are presently neglected or not adequately covered with a view to alerting the authorities concerned on the implications of such omissions.
The study will also hopefully serve as a practical reference point and an empirical base for further researches.
CHAPTER TWO
LITERATURE REVIEW
Overview
This chapter reviews the literature and is centered on employees’ participation in goal setting and its correlation to performance. The literature review focuses on team goal setting, joint goal setting, employee involvement in goal setting and the strategies to enhance employee participation in goal setting. This section also looks at the research gaps.
Concept of Goal Setting
In the late 1960’s Locke (1996) proposed that intentions to work toward a goal are a major source of work motivation. Locke suggested that goals tell an employee what needs to be done and how much effort will need to be expended (Robbins, 1997). Locke, (1996) proposed goal setting theory, which suggests that specific goals increase performance and that difficult goals, when accepted, result in higher performance. Locke developed his theory after results from laboratory experiments, involving such tasks as brainstorming, addition, and assembling toys, which revealed that those individuals who were assigned challenging goals performed better than those individuals assigned only moderately challenging or easy goals (Latham & Locke, 2002). Locke also found that those participants who were given specific, challenging goals out-performed those who were given vague goals such as “do your best” (Latham & Locke, 1984). He further suggested that difficult goals require greater commitment than easy goals (Locke, 1996).
Goal setting has been explored in terms of both its motivational impact toward improving performance (Locke, 2003; Latham and Yukl, 2005; Knight et al., 2001) and as being an integral part of management systems or processes designed to improve performance (Odiorne, 2004; Ivancevich, et al., 2004). Though fewer studies exist concerning optimism in the workplace, evidence certainly exists linking the concept of goal-setting to improvement in worker performance (Jensen et al., 2007; Dixon and Schertzer, 2005; Green et al., 2004; Chemers, et al., 2000).
Since 1990, many researchers and practitioners have explored how to set goals effectively in different fields. Locke and Latham (1990) contended that demanding goals would only facilitate performance if employees were committed to those goals. Goal commitment is higher when individuals fully understand their goals, feel pressure from peers to perform well, perceive that they can attain their goals, and believe that they will be recognized for their accomplishments. The relationship between organizational work settings and behavior was explored by Robbins, (1997). Three work setting features were examined regarding their relationships with a set of employee behaviors relevant to planned organizational change and potential, organizational performance. From the company’s perspective, a career goal can promote effective job performance and can help in human-resource planning (Greenhaus et al., 1997 & 1998). Employees should be informed about the firm’s mission, structure and culture. Merritt and Berger (1998) established a system of goals in their study to enable managers to manage themselves and others. They emphasized that managers must know how to perform a multitude of functions to produce desired goals effectively.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
A descriptive survey design was used in this study. The survey design is well suited to studies in which individuals are used as a unit of analysis in order to measure generalizations (Borg and Gall, 2005). The survey design was best suited for this study because the data required for analysis was to be collected from a large population, in which it could be hard to observe the features of each individual. According to Mugenda and Mugenda (2003) a descriptive research determines and reports the way things are, and attempts to describe possible behaviour, attitude, values and characteristics of such things. Schindler and Cooper (2003) observed that descriptive studies are structured with clearly stated questions to be investigated. This made it possible for the researcher to produce statistical information on the effects of participative goal setting on employees’ performance.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Introduction
This chapter presents the results obtained from the study. It includes the general information of the respondents that were under the study. The data was analyzed and presented in frequencies and converted into percentages and thereafter presented into tabular forms.
CHAPTER FIVE
DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS
Summary of the Findings
The findings of this study have been derived from the objectives of the study which were:
- a) To determine the effects of team goals on employees’ performance
- b) To assess the influence of joint goal setting on employees’ performance.
- c) To establish the effects of employee involvement in goal setting on employees’ performance at Unilever Nigeria PLC.
- d) To examine the strategies for enhancing goal setting and their likely effect on employees’ performance.
Effects of Team Goals on Employees Performance
The first objective of the study was to determine the effects of team goals on employees’ performance. The study found that employees of unilever agreed that team goals improved employees’ performance. This was supported by over 70% of the respondents.
Conclusions
Based on the above findings and discussions the study concluded that participative goal setting of specific, difficult and accepted goals affects performance. Team goals affect performance through creation of teamwork and collaboration. Effective team goals can better achieve a goal by pooling, capitalizing and utilizing experience and expertise. A well set team goal facilitates focusing their efforts in a specified direction to achieve desired performance. Having employees work as teams with specific team goal rather than as individuals with only individual goals, increases employee performance.
Joint goals improve performance through engagement and conducive work environment. The employees need to have unlimited input into their work and to be fully involved in the designing of performance measurements and the uses of performance measurements.
Involvement of employees in goal setting also enhances employee performance. The employees need to have unlimited input into their work and to be fully involved in the designing of performance measurements and the uses of performance measurements. Finally based on the findings of the study, there are four ways of effective employee participation in goal setting which includes; understanding the strategy the organization is trying to implement, timely communication of performance targets, timely feedback on progress towards set goals and employee full participation in setting goals.
Recommendations of the Study
Arising from the foregoing conclusions the study makes the following recommendations for improving goal setting and employees’ performance at the Unilever Nigeria PLC.
- The use of teams in problem solving and decision making should be encouraged. This will create shared understanding and promote high levels of employee collaboration which have the potential to raise performance.
- Through joint goal setting at the work place employees should be involved in setting strategies designing performance measurements and the uses of performance appraisal.
- Employee involvement has the effect of improving timely service delivery, morale and achievement of goals. The company should make use of this aspect of goal setting in order to enhance employee’s performance though reduction of resource wastage in organizations.
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