The effects of goal setting and feedback on manufacturing productivity: a field experiment

Purpose – To describe the conduct and outcomes of a field experiment in a US manufacturing facility using goal setting and feedback as productivity improvement tools. Design/methodology/approach – Initial studies were conducted to determine a baseline of performance. A two‐month field experiment was utilized to test and measure productivity. The field experiment involved the implementation of changes to three manufacturing cells for a six‐week period and the training of supervisors and staff. Researchers performed the collection of data, implementation of changes and training of workers. Findings – Findings suggest that goal setting and timely feedback will lead to improved work performance, greater efficiency, and the establishment of more challenging goals. In addition, findings suggest that information systems which facilitate goal setting and feedback are more effective than traditional supervision systems at improving performance. Research limitations/implications – Several limitations of this study should be noted. First, the time frame for the intervention was limited to two months. A longer data collection period could ensure the longevity of the conclusions of this analysis. Second, all subjects received verbal feedback followed by the addition of graphic feedback. Therefore, sequence effects cannot be ruled out. On an overall basis, though, the findings of this study can clearly be applied to a wide range of manufacturing organizations Practical implications – The study is useful for all managers seeking a competitive advantage through improved productivity. It provides significant insight into ways to improve productivity through the use of goal setting and performance feedback implemented by information systems. Originality/value – This paper fulfills a need for insight into methods for improving productivity, as well as offering practical aid to managers in the manufacturing industry.