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Supplementary reading materials for the first semester Text One Practice effective goal setting E mployees have many goals. They strive to reach quotas, win contests, please others, make it through the workday, or outperform their co-workers. Their goals are sometimes difficult and sometimes easy, sometimes specific and sometimes vague. The nature of employee goals and how they are set are critical. Goal setting is a simple and inexpensive, but very powerful, tool in the leader’s arsenal. Why are goals so important? ◆Goals let employees know what is expected of them. ◆Goals can relieve boredom. Consider how boring most games would be if you didn’t keep score. ◆When people reach their goals, they like their jobs more and are more satisfied with their performance. ◆Reaching a goal earns recognition from peers, supervisors, and others. ◆Reaching a goal increases self-confidence, pride in achievement, and willingness to accept future challenges. Here are guidelines for setting effective goals: Be specific. Specific goals lead to higher performance than vague ones. In fact, “do your best” goals have about the same effect as no goal at all. Imagine a runner circling a track, shouting to her coach “How much farther do I have to go?” A reply from the coach of “Just do your best” won’t help much. Similarly, “directional” goals, such as “do better” or “lose weight” aren’t any more useful. Instead, a specific goal such as “increase productivity by 20 percent within six months” or “lose ten pounds in ten months” is needed. Set difficult, but reachable, goals. As long as the goal is seen as reasonable, more difficult goals lead to better performance. However, employees must believe the goal is attainable.Iif not, they will reject it. Also, people pursue many goals at the same time. If they believe one is too difficult, they will focus on other, more attainable goals. Interestingly, when people face difficult goals, they analyze their task more thoroughly and are more creative th