When we speak of goal and its motivational potential, the concept of management by objectives, immediately comes to mind. management by objectives is a process of joint goal setting between a supervisor and a subordinate.The process involves managers working with their team members to establish performance goals and to make plans that are consistent with higher-level work unit and organizational objectives. This unlocks the motivational power of goal setting as just discussed. And when done throughout an organization, management by objectives also helps clarify the hierarchy of objectives as a series of well-defined means-ends chains.