Standard Setting Some managers may tend to set the budget either too loose or too tight. Since budgets goals tend to become the manager's goal when participation is allowed, making this mistake in setting the budget can result in decreased performance levels. If goals are too easily achieved, a manager may lose interest, and performance may actually drop. Feeling challenged is important to aggressive and creative individuals. Similarly, setting the budget too tight ensures failure to achieve the standards and frustrates the manager. This frustration, too, can lead to poorer performance. The trick is to get managers in a participative setting to set high but achievable goals.