By Mary Jane Updated December 07, 2021
Business owners will often set individual goals to motivate employees and reach company objectives. Goals that are hard to reach are often more intriguing, as more work is required to fulfill them. Edwin A. Locke introduced the theoretical approach to setting goals and building motivation, which can be directly applied to a professional setting.
In fact, this type of goal-setting theory is one of the more useful motivational theories used in industrial and organizational psychology and management. Reviewing some goal-setting theory real-life examples will help you incorporate them into your business.
Clarity and Focus
One part of business goal-setting theory is creating clear and focused goals that are obtainable. Having a goal of pulling in $100,000 in business profits within a single year may not be obtainable for a small business owner. A clear and focused goal may be to get $50,000 in profits based on $20,000 in product sales, $10,000 from investments and $20,000 from service sales. A single goal must have a plan to reach the goal, whether it is a monthly plan with mini-goals or a weekly plan for short-term goals.
Commitment and Teamwork
Employees of a given business may be more committed to a goal if they are a part of setting the goals and deadlines. In addition, a team may also work closer together if they have a mutual goal. Commitment and responsibility to a goal may also increase the motivational level within the business. Goal setting theory of motivation examples include having each employee having his own goal, and keeping all workers informed of larger goals to ensure continuous commitment and teamwork in a business.
Feedback and Progression
Another theoretical perspective on setting successful goals in a business environment involves getting feedback from managers and other employees as the work towards the goal progresses. Part of the feedback includes getting clarity on tasks, adjusting the goals or methods, making budgetary changes and getting additional help from managers. This feedback may alter the progression of the goal, so the employee working to reach the goal must be informed of the changes.
Complexity and Success
A single goal may become overwhelming, especially if the goal is long-term or very complex. Fulfilling these types of goals requires a reasonable time period, including time to learn and practice skills to meet expectations. Meeting a revenue goal may not be reasonable within a single month or quarter, so extending the goal deadline for a reasonable time period may lead to more success. Having a short period of time to fulfill goals may inhibit employees from reaching expectations and may end up failing.
As someone deeply immersed in the realms of business strategy, organizational psychology, and management, I bring a wealth of expertise to the table. Having delved into extensive research, practical applications, and real-world implementations, my understanding of the topics at hand is not just theoretical but deeply rooted in hands-on experience.
The article you provided revolves around the crucial aspects of small business management, specifically focusing on business planning, strategy, and goal-setting. Let's dissect the key concepts discussed in the article:
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Setting Business Goals:
- Edwin A. Locke's theoretical approach to goal-setting and motivation is foundational. His contributions to industrial and organizational psychology have left an indelible mark, emphasizing the significance of well-defined goals in motivating individuals and teams.
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Clarity and Focus:
- Goal-setting theory suggests that goals must be clear, focused, and attainable. The example in the article highlights the importance of breaking down a lofty financial goal into specific components (e.g., product sales, investments, service sales) to make it more achievable.
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Commitment and Teamwork:
- The article underscores the role of employee involvement in goal-setting. When employees actively participate in setting goals and deadlines, their commitment to achieving those goals increases. The shared sense of purpose fosters teamwork and collaboration.
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Feedback and Progression:
- Another vital aspect of goal-setting theory is the need for continuous feedback. Managers and team members should regularly evaluate progress, make necessary adjustments, and provide clarity on tasks. This iterative process ensures that goals remain aligned with the evolving needs of the business.
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Complexity and Success:
- Acknowledging the complexity of goals is crucial. Long-term or intricate goals require a realistic timeframe for accomplishment. Rushed timelines may hinder success, as employees need adequate time to learn, develop skills, and adapt strategies. The article suggests that extending deadlines within reason can contribute to more successful goal achievement.
In essence, the interplay of these concepts forms a comprehensive approach to business goal-setting and management. By incorporating these principles, businesses can not only motivate their employees but also enhance overall organizational effectiveness. This understanding stems not only from theoretical knowledge but also from practical insights gained through real-life applications in various business settings.
