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Goal setting and plant closure: When bad things turn good

Author

Listed:
  • Lars Häsänen

    (Stockholm University, Sweden, lhs@psychology.su.se)

  • Johnny Hellgren

    (Stockholm University, Sweden)

  • Magnus Hansson

    (Örebro University, Sweden)

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.

Suggested Citation

  • Lars Häsänen & Johnny Hellgren & Magnus Hansson, 2011. "Goal setting and plant closure: When bad things turn good," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 32(1), pages 135-156, February.
    • Handle: RePEc:sae:ecoind:v:32:y:2011:i:1:p:135-156
    DOI: 10.1177/0143831X10376615
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    References listed on IDEAS

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    1. Paavo Bergman & Rune Wigblad, 1999. "Workers' Last Performance: Why Some Factories Show their Best Results during Countdown," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 20(3), pages 343-368, August.
    2. Anthony P. Raia, 1965. "GOAL SETTING AND SELF‐CONTROL: An Empirical Study," Journal of Management Studies, Wiley Blackwell, vol. 2(1), pages 34-53, February.
    3. Erik Berntson & Magnus Sverke & Staffan Marklund, 2006. "Predicting Perceived Employability: Human Capital or Labour Market Opportunities?," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 27(2), pages 223-244, May.
    4. Magnus Sverke & Johnny Hellgren, 2001. "Exit, Voice and Loyalty Reactions to Job Insecurity in Sweden: Do Unionized and Non‐unionized Employees Differ?," British Journal of Industrial Relations, London School of Economics, vol. 39(2), pages 167-182, June.
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