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Components of MBO MBO involves the employee in participative goal setting.Increased levels of participation lead to satisfaction improvements, although this relationship appears to depend on the needs of the employee (Steers, 1976).Knowledge of results tends to increase performance levels, but the results are more apparent when it is tied to goal setting (Locke and Bryan, 1969; Nemeroff & Consantio, 1979; Conlon, 1980) and the individual values (Braunstein, Klein, and Pachla, 1973; Latham and Baldes, 1975).Consistent and signifi cant improvements in performance as a result of goal setting have been found in studies by Locke and others (Bryan & Locke, 1967; Locke & Bryan, 1969; Locke, Cartledge & Knerr, 1970; Locke, 1975; and Umstot, Bell & Mitchell, 1976; and Iv ancevich, 1977).Effectiveness seems to de pend on the amount and type of participation (Latham & Saari, 1979; and Euske & McFillen, 1979) and the individual (Steers, 1975 & 1976; Ivancevich, 1979; and French, Israel, & As, 1960).Latham and Yukl (1975) indicate these components in the process of goal setting.(See Arvey, Dewhirst & Brown, 1978, for a review).
Components of MBO MBO involves the employee in participative goal setting. The goals become a form of feedback or knowledge of results. Latham and Yukl (1975) indicate these components in the process of goal setting. They are: (a) goal setting itself, (b) par ticipation in goal setting, and (c) knowledge of results. Goal setting itself is positively related to performance. Consistent and signifi cant improvements in performance as a result of goal setting have been found in studies by Locke and others (Bryan & Locke, 1967; Locke & Bryan, 1969; Locke, Cartledge & Knerr, 1970; Locke, 1975; and Umstot, Bell & Mitchell, 1976; and Iv ancevich, 1977). Setting goals improves performance and the more difficult it is to reach the goals the better the performance, up to the point where goals are per ceived as impossible (Stedry & Kay, 1966; and Zander & Newcomb, 1967). The re lationship between goal setting and satisfaction is less clear. (See Arvey, Dewhirst & Brown, 1978, for a review). Other variables seem to moderate the effects of goal setting on satisfaction. Participation has mixed effects on performance. Effectiveness seems to de pend on the amount and type of participation (Latham & Saari, 1979; and Euske & McFillen, 1979) and the individual (Steers, 1975 & 1976; Ivancevich, 1979; and French, Israel, & As, 1960). Increased levels of participation lead to satisfaction improvements, although this relationship appears to depend on the needs of the employee (Steers, 1976). Knowledge of results tends to increase performance levels, but the results are more apparent when it is tied to goal setting (Locke and Bryan, 1969; Nemeroff & Consantio, 1979; Conlon, 1980) and the individual values (Braunstein, Klein, and Pachla, 1973; Latham and Baldes, 1975). Knowledge of results also improves sat isfaction (Cook, 1968; Locke, 1965; Hackman & Lawler, 1971; and Ilgen, 1971) al though this relationship seems to be moderated by attributes of the individual. In summary, goal setting aids performance and, to some degree, satisfaction. Participation and knowledge of results can aid performance and satisfaction but there are moderating variables that affect the results.
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