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waste from its U.S. stores by the year 2009. This goal meets all the conditions of
being SMART if we assume that it is an achievable goal. [48] Even though it seems
like a simple concept, in reality many goals that are set within organizations may not
be SMART. For example, Microsoft recently conducted an audit of its goal-setting

and performance review system and found that only about 40% of the goals were
specific and measurable. [49]
Why Do SMART Goals Motivate?
Figure 14.16

Why do SMART goals motivate?
Based on information contained in Latham, G. P. (2004). The motivational
benefits of goal setting.Academy of Management Executive, 18, 126–129; Seijts, G.
H., & Latham, G. P. (2005). Learning versus performance goals: When should each
be used? Academy of Management Executive, 19, 124–131; Shaw, K. N. (2004).
Changing the goal-setting process at Microsoft.Academy of Management
Executive, 18, 139–142.
There are at least four reasons why goals motivate. [50] First, goals give us
direction; therefore, goals should be set carefully. Giving employees goals that are
not aligned with company goals will be a problem because goals will direct
employee’s energy to a certain end. Second, goals energize people and tell them not
to stop until they reach that point. Third, having a goal provides a challenge. When
people have goals and when they reach them, they feel a sense of accomplishment.
Finally, SMART goals urge people to think outside the box and rethink how they are
working. If a goal is substantially difficult, merely working harder will not get you

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