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Classical Management Decision Theory Behavioral View Systems Theory View

4 Views on Organizational Goals. Classical Management Decision Theory Behavioral View Systems Theory View. Classical View of Goals. Goals as “ends” (targets) Hierarchy of Objectives (Means-End Chain) Goal Displacement (Means-End Reversal). Effective Transportation.

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Classical Management Decision Theory Behavioral View Systems Theory View

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  1. 4 Views on Organizational Goals Classical Management Decision Theory Behavioral View Systems Theory View

  2. Classical View of Goals Goals as “ends” (targets) Hierarchy of Objectives (Means-End Chain) Goal Displacement (Means-End Reversal)

  3. Effective Transportation Safety Comfort Economy Appearance Low Low Low High Purchase Financing Operating Resale Price Cost Cost Value Warranty Fuel Depend- Adequate Coverage Effic. ability Service Adapted from Juran, J.M. 1992 Juran on Quality by Design. The Free Press, p. 37.

  4. Increase Market Share 5% Produc- Finance Marketing tion Rev. 8.7% Sales Sales Sales A 9.2% B 6.2% C 4% NW SE NE SW District A District B District C Mike Susan Joan Etc

  5. Decision Theory View of Goals Goals as Constraints

  6. Behavioral View of Goals MBO: Joint Goal Setting Specified Time Period Performance Compared to Stds. Variances are Discussed New Goals Jointly Set Repeat the Process

  7. Characteristics of Goals Set 1. Specific, Measurable 2. Cover Key Results Areas 3. Challenging but Realistic 4. Defined Time Period 5. Linked to Rewards

  8. Benefits of MBO 1. Directs work activity 2. Forces & aids in planning 3. Provides clear stds. for controlling 4. Provides more objective performance evaluation criteria 5. Provides increased motivation 6. Decreases role conflict & ambiguity 7. Increased employee development 8. Increased openness & communication

  9. Problems with using goals to motivate* • Problems with Goals that are too specific • Narrows one’s focus • Quantity gets emphasized over quality • Short term gets priority over long term • Creates a performance ceiling • Problems with goals that are too challenging • Lead to riskier behavior • Can lead to unethical behavior • Other side effects • Setting goals can inhibit learning • Can promote competition over cooperation • Can reduce intrinsic motivation • From Ordonez, L.D., Schweitzer, M.E., Galinsky, A.D. & Bazerman, M.H. 2009. • Goals gone wild: The systematic side effects of overprescribing goals. • Academy of Management Perspectives, 23, 6-16.

  10. Systems Theory View of Goals Official Goals vs. Operative Goals What they say What they actually they do do Mission Individual/Dept Goals

  11. Characteristics of Mission Statements Purpose of the organization (What business it is in.) Scope of operations Statement against which to measure progress Org.’s philosophy, beliefs, values

  12. How to handle multiple goals? • Satisfice rather than optimize • Incremental Progress • Prioritize • Sequential attention

  13. Summary: Functions of Goals Goals Provide: Source: Guidelines for Action classical view decision theory Source of Legitimacy systems view Stds. for Performance classical view behavioral Source of Motivation behavioral Rationale for classical view Decision Making systems

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