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CSEAR What they are… …Reference points, benchmarks of expected performance against which the manager’s / unit’s actual performance is evaluated further in the performance-measurement-evaluation sequence. What they do… …they define the organisationally desirable level of performance in all the essential areas identified by the MCS’s performance measures, and thereby distinguish between deficient, acceptable and superlative performance. …what constitutes an appropriate target of performance (“what type of targets ?”) …what is the most effective way to establish a target of performance (“how to set targets ?”) (Otley, 1987) Imagine that you are a salesman / saleswoman working in the local Ford car dealer, selling cars. You are paid strictly on a commission basis. Which of the two statements below do you think would motivate you more to sell cars ? (1) “You need to be selling no less than three (3) cars per week to make £1000 at the end of the month.” (2) ”Sell as many cars as possible.” Specific Targets : “…open-ended goals of ‘do you best’ type are not usually motivational. Individuals seem to respond better to clearly stated, specific targets” (Meyer et al., 1965 ; Tosi, 1965) “…goals must be boldly stated and clearly defined to influence the individual’s behaviour” (Donaldson, 1984) “…specific goals result in greater effort [motivation]” (Locke, 1968) “…Goal-Setting Theory (Locke, 1968 ; Locke Latham, 1990) Demanding Targets : “…moderately difficult targets, i.e., challenging but not impossible to attain, are seen to maximise the effect on people’s motivation” (Stedry, 1960 ; Stedry Kay, 1966) “…optimum motivation occurs when targets are perceived to be moderately difficult ; when goals are deemed to be either too easy or too difficult, motivation tends to reduce” (Atkinson, 1964) “…to motivate the best possible level of actual performance, the (budget or other) performance target must be set at the highest level
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