Implementing Goal-Setting
How do managers Some managers set aggressive make goalsetting theory operational? That's often left up to the individual. performance General Electric called"stretch goals." Some CEOs, targets--what such as Procter& Gamble's Robert McDonald and Best Buy's Hubert Joly, are known for demanding performance goals. But many managers don't set goals. when asked whether their job had clearly defined goals, only a minority of employees in a survey said yes.
A more systematic way to utilize goal-setting is with management by obijective(MBO),which emphasizes participatively set goals that are tangible, verifiable, and measurable. As in Exhibit 7-4, the organization's overall objectives are translated into specific objectives for each level(divisional, departmental, indi- managers jointly participate in setting their own vidual). But because lower-unit 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. And for the performance employee, MBO provides specific personal objectives. individual
Four ingredients are common to MBO programs :goal specifici Participation in decision making(including the setting of goals or objectives), an explicit time-