University at Buffalo School of Management

20 Buffalo Business Autumn 2016 Insights News about faculty and their research Set challenging but realistic goals for your organization When establishing organizational goals, managers should avoid setting overly ambitious goals because they can hurt productivity, mar- ket performance and employee morale, ac- cording to new School of Management research. The study indicated that employees are motivated more by small wins and chal- lenging, incremental goals than by seem- ingly impossible stretch goals. "Some managers attempt to rapidly improve their organization's competitive position by adopting goals for impressive achievements that will excite staff and stakeholders," says lead author Jim Lem- oine, assistant professor of organization and human resources. "But if those goals are unrealistic because of current resourc- es, employees may lose confidence in their performance and the organization." Published in the Journal of Substance Abuse Treatment, the study analyzed 219 substance use disorder treatment centers — a field in which stretch goals are used frequently because of resource uncertainty and fiscal instability. The researchers found stretch goals were most harmful in organizations that had recently experienced success. "In organizations with a strong record of efficiency and growth, employees may become burned out or demotivated by be- ing asked to perform at even higher levels," Lemoine says. "In fact, we found centers with relatively abundant resources became inefficient when managers set unrealistic expectations." Of course, the question of whether a goal is difficult or impossible to achieve is subjective. Lemoine recommends manag- ers consult with employees on what they perceive as realistically attainable. "For those without prior experience in managerial goal-setting, establishing high-reaching goals might seem like a harmless exercise with potentially huge payoffs," Lemoine says. "Our research should serve as a cautionary tale for orga- nizations in all industries and encourage managers to take a thoughtful look at their short- and long-term goals." Lemoine's co-authors were Terry Blum, professor, Georgia Institute of Technology Scheller College of Business, and Paul M. Roman, Distinguished Research Professor of Sociology, University of Georgia. x Double cheeseburger and a diet soda, please While more con- sumers than ever are concerned about eating a healthy diet, they tend to purchase a balance of healthy and less-healthy foods, according to new School of Management research published in the Journal of Retailing. "There is a disconnect between what people say they want to eat and what they actually purchase," says co-author Minak- shi Trivedi, professor of marketing. "Each group we studied made tradeoffs on healthy and unhealthy food to varying degrees." The researchers analyzed two years of scanner data across more than 70 stores of a major U.S. retail chain, along with sur- vey responses from 400 of its shoppers to see if consumers consciously balanced their health concerns with their food purchases. The study grouped consumers using a mathematical model based on their at- titudes and concerns: the first group was health-driven, the second took a more moderate approach and the third was in- different to healthier versions. When faced with healthy choices — which the study based on the level of fat, sugar or salt — the consumer segments Lemoine Trivedi

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