Friedman did not apply goal-setting theory to motivate employees.
Goal-setting theory focuses on providing employees with achievable but difficult goals to motivate employees. The theory says that all good performances start with clear goals and setting objectives make employees feel challenging.
Friedman did not provide goals to his employees. He made employees their own bosses by doing the following:
• Employees could work the hours they wanted
• Employees were paid what they thought they were worth
• Employees could take vacation time when they wanted
• Employees could help themselves to petty cash if they were in need of spending money
• New employees would be allowed to set their own wages
Friedman focused on motivation among the three factors of performance formula
Performance formula = ability × motivation × resources
(b) Motivation because Friedman used self-motivation to affect the performance of employees by making them his or her own boss. He provided all incentives required to increase performance and achieve business goals. The following are the incentives and rewards given by him to the employees:
• Open petty cash system
• Employees scheduling their days and hours to work
• Allowed workers to decide their own pay
• Provided pay rise
Motivation is an inner desire to appease an unsatisfied needs or wants. From the organizations perspective it is the employee's willingness to achieve organizations goals or objectives by going above or beyond his/her own duty.
It is important to know how to motivate employees because it affects employee performance. People who are satisfied with their jobs are highly motivated and are more productive and contribute to profits.
Apart from poor skills and lack of experience, a manager's insufficient motivation can also be a cause to poor performance of employees. Motivating employees is not an easy task because different people are motivated by different things. Therefore, managers must find ways to motivate employees individually in ways that will meet their diverse and unique needs.