Goal-Setting Theory

As a result of researches it was determined that more difficult goals require more effective working then more easily attained goals. But to get such effect an individual must share and accept this goal. So it would be useful if management of an organization takes into consideration the theory and to improve employee motivation level generate such kind of tasks for them that would be difficult but attainable. The feedback on the work performed is also important factor for motivation.It allows the individual to compare what should be done to what is really done, analyze the difference and take into consideration the faults.

It should be mentioned that some individuals have so called self-generated feedback; this means he/she analyzes the work done by him/her himself/herself. Such types of individuals are more productive, effective and motivated. As many other traits, this trait (self-critic, “self-feedback”) can also be developed and improved by the individual. Self-Efficacy Theory This theory is in close relationship with the goal-setting theory.Giving difficultly achieved goals increases self-efficacy, as when the manager gives the employee a difficult task, the employee feels the confidence and support from the manager, what increases self-estimation. Also it should be mentioned that the cause of the feeling of inequity is not only salary/wage, but other nonmaterial stimulus are important too. What is meant under equity and justice? As a result of researches the meaning of this term for the employees was determined.

Generally the perception of the equity goes to the organizational justice, which requires the unity of the following components.All the three aspects of justice are to be taken into consideration when interacting with employees. Managers should publicly discuss and share the information about why some employee is given some stimulus (reward), should take objective decision of rewarding an employee. For this a respective motivational system is needed, which takes into consideration public systems of employee appraisal.

Expectancy Theory The activity of the individual is determined by a logical sequence, which can be perceived with three connections: effort – results; results – rewards; rewards – personal goals.The main idea of expectancy theory is exactly in determining and understanding these connections. Based on an individual’s personal goals, an organization (management) should generate a desirable reward for the employee, which will be in connection with the results and the corresponding effort. Of course every individual is driven by different personal goal and desire, but yet it should be at least partially recognized.

Best services for writing your paper according to Trustpilot

Premium Partner
From $18.00 per page
4,8 / 5
4,80
Writers Experience
4,80
Delivery
4,90
Support
4,70
Price
Recommended Service
From $13.90 per page
4,6 / 5
4,70
Writers Experience
4,70
Delivery
4,60
Support
4,60
Price
From $20.00 per page
4,5 / 5
4,80
Writers Experience
4,50
Delivery
4,40
Support
4,10
Price
* All Partners were chosen among 50+ writing services by our Customer Satisfaction Team

Recommendations Despite the approaches of the methods and theories discussed are quite different, they have the same goal – to motivate an individual and respectively to increase his/her effectiveness and quality.Each of them taken separately cannot give such an effect as their complexity. These methods fill up each others and generate the effect of synergy; accordingly they should be implemented coordinated. The starting point of implementation for every company would be to take an individualistic approach to each employee. Personal goals of an employee should be determined, what he desires, by what he is driven, what he wants to achieve. There are several ways to determine this: direct observation on an employee during the working process, surveying employees using the relevant questioners.

After determining personal goals rewards, stimulus motivating the employee may be defined. According to McClelland’s theory of needs three types of motivators can an individual have at the workplace: achievement, power, and affiliation. These needs can be presented in an individual equally, or can be presented with big differences (e.

g. : high level of need for achievement and almost zero level of need for power). Besides these motivators other motivators should also be taken into consideration if presented for an individual. An employee should be given the reward, stimulus motivating for him/her.Herewith it is necessary to distribute rewards equally (depending on performance) and the performance should be estimated objectively and fairly. As a result to follow this sequence will give desired effort, effect and quality from the employee.

Feedback on the work performed and the experience gained by successfully achieving a goal (enactive mastery) will increase the employee self-efficacy. And also successful performance and effort given by one employee will generate a precedence of imitation by another employee (vicarious modeling).The effort may also be increased by giving difficultly achieved goals (which themselves will increase employee self-efficacy) and sometimes by irritation. Again these become a part of the sequence. Objective, fair and respective approach to every employee is also important (to avoid demotivation).

Implementation of these recommendations is not easy. Of course it is not an ideal model of motivation system of an organization, but using its modified model (tailored to the specific company) will sharply increase motivation level among employees and respectively will increase company effectiveness, work quality and accordingly financial gain.It should be mentioned that this model is mainly focused on nonmaterial motivators which will not be a cost for an organization and which can be implemented any time despite the scarcity of financial or other resources. Conclusion The present motivation level and methods used in banking sector for employees are not so enviable. The ongoing social-economical crisis can be considered as a reason of this situation, but it should be mentioned that the crisis just played the part of catalyst.

The real reason is quite different. Demotivated employee is a result of incorrectly implemented motivation system. If going deeper, the incorrect motivation system is a result of incorrect HR policy and management, and the latter is caused by incorrectly planned strategy. Actually the problem has begun earlier – when these companies (banks) entered Georgian market.

Accordingly, correction of the sole problem – low level of motivation, just making changes in this field will be quite difficult and nearly impossible.Checking strategy and main objectives should be made frequently during existence of a company and this issue is more actual during the crisis period. In my opinion, if the present approach is kept unchanged the situation will deteriorate which will directly expose financial and not only financial loss generated by demotivated employees (which also seriously acts on company image). Of course the loss in the banking sector is considerable for the present, but this result is more, and even entirely is connected to the financial problem.It should be mentioned that the importance of motivation and demotivation connecting this issue is not considered yet. Finally, we can conclude that the way out the present situation is to check and change company strategy and the whole business, also to find out the mistakes which are apparently seen and “lay on the surface” and the most important is to correct or radically change them. Not taking into consideration all the issues and the present environment will procrastinate the way out of the crisis and the improvement of the situation for the banking sector.Also, we can conclude that not taking these steps will lead the companies to the position where they will be quite weakened (and may even go bankrupt) or will have to take action hastily which will be ineffective, low quality and will require huge spending.

The reason for this may become as lasting the crisis period so the improvement of the overall situation and increasing competition. Despite the present situation there are fairly serous resources which are a guarantee of positively arranging the problems.

x

Hi!
I'm Dora!

Would you like to get a custom essay? How about receiving a customized one?

Click here