Concluding Goal-Setting Insights

Poor Goal Setting Leads to Increased Costs and Low Morale

Salespeople may receive unearned income if their goals are set unrealistically low. Similarly, the sales force will lose motivation if goals are set so high that they are unachievable. ''Management knows that we can't make it; they are just fooling themselves and us'' may be the salespeople's point of view. Neither outcome is beneficial for the firm. It is important to strive to set realistic goals.

Goals with Short Time Frames and Midyear Goal Corrections Are Appropriate in Volatile Business Environments

The business environment can present high levels of uncertainty. Under these circumstances, forecasting a national sales goal accurately is difficult. ...

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