For that reason, I believe that management by objectives is not a motivator unless it is linked to a reward system. This will appear contrary to many managers to whom I've told over the years that you cannot motivate an employee. The problem lies with defining achievement and motivation. What is motivating to an individual is, then, determined by the individual. In other words, objectives setting without tangible rewards is MBO in a vacuum.
Motivation depends on how well an individual's needs are met.
If achievement is one of those needs, the employee may be motivated by his own sense of achievement, but if his sense of achievement depends on confirmation by the rewards he receives for meeting objectives, then he will need the rewards, both as a confirmation and as a device to measure how well he has achieved. To put it a little more simply, if an individual has the need to achieve something and he accomplishes that something, he will be motivated. What is needed is a greater incentive for the individual to set and meet objectives, to be fully involved in MBO as a process. MBO is usually thought of as a program, and a program has a beginning and an end. Because motivation is internal, it is difficult to ascertain, but achievement is external to the individual, and achievement can be measured.