Goal setting and plant closure: When bad things turn good

Abstract

Research has shown that closedowns seem to result in increased productivity even though all productivity targets have been abandoned. The closedown case analysed in this article is different from previous research since management came to employ high goals for productivity and efficiency throughout the entire closedown process (29 months). The article argues that individuals gradually accept the demise and detach themselves from the dying organization by adopting new career goals which they can start pursuing after the actual closure, thus the closure becomes a subgoal. This study examines change in the dependent variables’ mean values, and the relationships between goal setting, job performance, goal commitment, organizational citizenship behaviour, job satisfaction and job-induced tension. A longitudinal design ( N = 151) based on two data points (T1: February 2006, T2: February 2007) were tapped into the annual goal setting process. The results support that goal setting was effective in this specific closedown scenario.