The Art and Science of Target Setting Harvard Case Solution & Analysis

The recent economic crisis and also the collapse of many financial institutions stand as living proof of the dangers of excessively challenging objectives coupled with fat bonuses. Objectives, at their best, can motivate people to triumph; at their worst, they get employees to participate in dysfunctional behaviour, leading to detrimental outcomes like those lately observed. How can companies get it right?

The writers studied objective-setting practices involving sales managers, account managers and business development professionals in the U.K. over a two-year period. Their research turned up a litany of failures: unrealistic goals, overemphasis on financials, dearth of coordination, bad communication, all adding up to discontent and poor performance.

Based on these findings, the authors identify the crucial moderators that affect people's behaviour and state advantageous outcomes when it comes to formulating targets, incentive schemes and performance measures. Then they propose a 10-step procedure to enhance the whole way in which performance goals are set. It requires some work, they say, but if well designed, goals can resume their original purpose: to drive superior performance.

The Art and Science of Target Setting case study solution

PUBLICATION DATE: December 15, 2010 PRODUCT #: IIR040-HCB-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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