Setting standards can lead to de-motivation when:

Setting standards can indeed lead to de-motivation when the wrong type of standard is used because it can lead to misalignment between employee capabilities and expectations. If the standards set are unrealistic, irrelevant, or not aligned with the team’s goals, employees may feel frustrated and demotivated. For example, if a standard focuses on outcomes that are beyond the employees' control or does not relate to their specific roles, it can create a sense of helplessness. Employees may feel they are being judged on factors that do not accurately reflect their performance or contributions, leading to disengagement and diminished motivation.

In contrast, easily achievable standards might not challenge employees enough to promote growth, and no standards at all can create a lack of direction. Additionally, when all employees meet their standards consistently, the focus shifts towards setting more ambitious benchmarks rather than demotivation, assuming those benchmarks are perceived as achievable and fair.