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The level of difficulty should be challenging but within the capabilities of the employee. Standards set too low are usually accomplished but not exceeded, while standards set too high usually do not motivate the employee to expend much effort to reach the goal.

It is important that standards be complete; however, it is difficult to develop a single standard or goal that will indicate the effective overall performance...

For example, consider the automobile dealer who decided to measure sales peoples performance on the basis of the number of automobiles sold. Sales increased impressively, but it was later learned that many sales had been made to poor credit risks, and too high prices had been allowed on trade-ins.

Too many managers are looking for that one magic number that will tell them how well the company is doing or how their employees are performing...

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