Improved management control

• Flexible, responsive to management needs

• Displays data relationships

• Helps audit / comply with legislative requirement

• Simplifies communication of strategic goals scenario planning

• Provides well documented and communicated process documentation

Exhibit 2 shows the relationship between motivation and perform­ance

Exhibit 2 shows the relationship between motivation and perform­ance. It can also be expressed by the equation P = M × A, where P refers to performance, M to motivation, and A to ability. Note that skill and technology contribute to ability.

29. Explain how goal setting is used to motivate people.

Motivation is the expenditure of effort to accomplish results.Many people believe the statements “You can accomplish anything you want” and “Think positively and you will achieve all your goals.” In truth, motivation is only one important contributor to productivity and perform­ance. Abilities, skills, and the right equipment are also indispensable. An office supervisor at a bank desperately wanted to become chairman of the board within three years. Despite the intensity of his motivation, he did not reach his goal. The factors against him included his lack of formal business education, limited conceptual skills, underdeveloped political skills, and inadequate knowledge of high finance. Furthermore, the current chairman had no intention of leaving the post. The simplest explanation of motivation is one of the most powerful: People are willing to expend effort toward achieving a goal because it satisfies one of their important needs. Goal setting plays an important role in most formal motivational programs and managerial methods of motivating employees. The premise underlying goal theory is that behavior is regulated by values and goals. A value is a strongly held personal standard or conviction. It is a belief about something important to the individual, such as dignity of work or honesty.

What goals have to be?

• Specific goals lead to higher performance than do generalized goals.

• Performance generally increases in direct proportion to goal difficulty.

• For goals to improve performance, the employee must accept them.

• Goals are more effective when they are used to evaluate performance.

• Goals should be linked to feedback and rewards.

• Group goal setting is as important as individual goal setting.

Goal Setting:Good managers are able to determine what needs to be done and to set goals to get there. Don't just drift through the day dealing with what lands on your plate. Prioritize. Figure out what needs to be done and set specific goals for yourself and for your team.

Motivate via goals in this scheme:

Goal setting theory has limitations. In an organization, a goal of a manager may not align with the goals of the organization as a whole. In such cases, the goals of an individual may come into direct conflict with the employing organization. Without aligning goals between the organization and the individual, performance may suffer.For complex tasks, goal-setting may actually impair performance. In these situations, an individual may become preoccupied with meeting the goals, rather than performing tasks.Some evidence suggests that goal-setting can foster unethical behavior when people do not achieve specified goals.Goal setting may have the drawback of inhibiting implicit learning: goal setting may encourage simple focus on an outcome without openness to exploration, understanding, or growth. Closely related to goal theory is the Pygmalion effect - the idea that people live up to the expectations set for them.

Many employees with a low work ethic will change their attitude and behaviors if management expects these employees to perform well.