Performance Management: Changing Behavior That Drives Organizational Effectiveness (part 26)

Setting and Attaining Goals

by

Charles Lamson

Once you have established the correct pinpoint, selected relevant measures, and set up a feedback graph, you should determine the level of performance you need. Defining a specified, or preset, level of performance to be attained is called goal setting. When the goal is far from the present performance, you will probably want to set sub-goals.

An almost universal misconception is that goals alone improve performance, but the research does not support this belief. In an article on the behavioral analysis of goal setting. Fellner and Sulzer-Azaroff (1984) state, "Goal setting alone may be ineffective because the behavior of concern has been inadequately, differentially reinforced in the presence of the goal." In a study comparing financial reinforcers and goal setting, Huber (1985/1986) concluded that "...the setting of goals, regardless of the method, does not evoke greater learning than that achieved when trainees are offered only a base salary." The fact that goals alone do not automatically improve performance can be validated by almost everyone's personal experience. We have all set goals we didn't reach and some we didn't even try to reach. This is not to suggest that goal setting is a waste of time. Quite the contrary, goals can be a very valuable tool in improving performance. However, it is naive to think that just setting a goal will consistently improve performance.

When goal setting is understood and used properly, the results can be substantial. Let's look at how to make goals effective.

The Proper Use of Goals in Performance Management

The most important reason for setting goals is to create additional opportunities for reinforcement. Goal attainment should, of course, be the occasion for reinforcement. You can celebrate progress toward the goal, the maintenance of performance at or above goal, and the achievement of levels of performance above the goal. Having a common goal gives a team a common purpose, something to rally around, something to talk about. Since added reinforcement increases performance, goals are a valuable performance tool.

Goals are antecedents for performance. Therefore they do not consistently produce improvement unless they are paired with reinforcement. Goals provide the opportunity for reinforcement, but are not necessarily the source of it. People who set goals without planning how they will celebrate success are often disappointed in the results.

When goal attainment has been consistently paired with reinforcement for a period of time, the goal takes on secondary reinforcing characteristics. This means, under some conditions, reaching a goal can be reinforcing in and of itself. For this to happen, however, you must first create a history of celebrating goal achievement. Eisenberger (1992) states, "The individual's decision concerning the amount of effort to exert in goal-directed behavior is influenced in no small part by the generalized effects of prior reward...."

The number of pairings needed to create goals as a reinforcer is highly variable as there are a number of factors to consider. As a general rule, you should always plan reinforcement, either social or a combination of social and tangible, for all goal and sub-goal attainment. For an extensive analysis of the resaerch on goal setting, refer to Fellner and Sulzer-Azaroff (1984).

Additional Benefits of Goal Setting

Increased reinforcement is the primary benefit of goal setting for individuals. Improved performance is the primary benefit of effective goal setting for organizations. However, there are other benefits.

Goals improve communications because they tell the performers exactly what and how much performance is desired. If their pinpoint is weight loss and the goal is to lose 25 pounds in six months, they know what to work on and when to celebrate. If the pinpoint is error-free documents and the goal is to increase the number of error-free documents processed per month, the employees know exactly what to do and when to celebrate.

How to Set Good Goals

A very important consideration in setting goals is the degree to which the goal is both challenging and attainable. These two elements play a large role in the ultimate success of goal setting. The criterion of challenging refers to how high to set a goal. The criterion of attainable refers to how low a goal should be. The best goals meet both criteria.

Making Goals Challenging

Most people think that high goals are the best goals. But David McClelland, a Harvard psychologist who conducted research on achievement for over 40 years, discovered that taking moderate risks is probably the single most descriptive characteristic of high achievers. For an excellent summary of McClelland's research, particularly that which relates to managers, see Luthans (1981).

No specific guidelines are available to indicate how far above present performance levels the goal should be set. But, most assuredly, the art of setting a challenging goal is related to the ability to set a goal no higher than people can reach before extinction (people not even trying to reach the goal because they think it is impossible to reach) sets in. The best way to ensure that extinction does not occur is to set attainable goals and have frequent celebrations.

Making Goals Attainable

Attainable goals are those for which success is highly probable. The more attainable the goal, the more likely performers will reach it. If goal attainment is paired with positive reinforcement, successful performers will want to set higher goals. It is much better to set many small, highly attainable goals, than one that is overly challenging.

One way of determining an initial goal level is to determine the level of failure you are willing to accept. If you are willing to accept a one percent failure rate, then the first goal, or sub-goal, should be set so that the probability that the performers will be successful is 99 percent. This ensures that participants will receive reinforcement for improvement and thereby accelerate their effort toward future goals.

*SOURCE: PERFORMANCE MANAGEMENT: CHANGING BEHAVIOR THAT DRIVES ORGANIZATIONAL EFFECTIVENESS, 4TH ED., 2004, PGS. 241-244*

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