“Goal setting is the process of developing, negotiating, and formalizing the goals that a person is responsible for achieving.” It is important that sales incentives are challenging but also achievable. This is a complicated solution. If a goal is too difficult, it could be demotivating in itself, but if the goal is easily achievable it can have the same effect. Employees need to be close enough to achieving their goals, to feel the need to push themselves. Therefore, a manager must evaluate his employee's capabilities more frequently, rather than annually, in order to establish and review short- and long-term goals and objectives. This would allow managers to review their employees' perception of goals and determine their level of motivation to achieve them