Goal setting is a great motivator. In fact, goal setting theory was rated number 1 in importance among 73 management theories. The objectives state what is to be accomplished within a given period of time. Objectives are end results; they do not state how the objective will be accomplished.

How to achieve the objective is the plan. In this course, you will learn the five criteria objectives should meet, how to write objectives, and how to use management by objectives (MBO). To motivate people to high levels of performance, objectives should be.

Difficult but achievable. To have high levels of performance, you need to set high standards. Observable and measurable. You can’t manage what you don’t measure, so measure what matters. If people are to achieve objectives, they must be able to observe and measure their progress regularly. Individuals perform better when their performance is measured and evaluated. Leaders need to be evaluated based on actual measures of results.

Specific, with a target date. To be motivated, employees must know exactly what is expected of them and when they are expected to have the task completed—a deadline. Deadlines help motivate us, but tight deadlines can be stressful. Some objectives do not require or lend themselves to target dates. For example, the objectives in the skill-building exercises do not list a target date.

Participatively set when possible. With the increase use of teams, people need to work together to set collective goals. Using participation helps get employees to accept objectives. Managers should use the appropriate level of participation for the employees’ capabilities. Accepted. For objectives to be met, employees must accept them by taking responsibility to achieve them. Without acceptance, even meeting the above four criteria can lead to failure.

Management by objectives (MBO) is the process in which managers and their employees jointly set objectives for the employees, periodically evaluate the performance, and reward according to the results.