Goals in an MBO should be established based on:

In Management by Objectives (MBO), establishing goals involves consideration of difficulty and flexibility.

Creating objectives that are appropriately challenging is essential, as these goals should push employees to excel and maximize their performance. Goals that are too easy may not motivate individuals to fully engage, while overly difficult goals can lead to frustration and disengagement. Thus, an ideal balance of challenge helps in maintaining motivation and engagement.

Flexibility in goal-setting allows for adjustments based on changing circumstances or new information. The business environment can be dynamic, and adapting goals to reflect shifts in strategy, market conditions, or individual performance is crucial for sustained effectiveness and relevance. This ensures that goals remain achievable and aligned with organizational priorities.

Considering both the difficulty of goals and their inherent need for flexibility creates a robust framework for performance management, allowing organizations to foster a productive and adaptive workforce.