Final answer:
The SkyBlue incentive plan encourages setting challenging and specific goals based on goal-setting theory.
Step-by-step explanation:
Based on the information provided, the SkyBlue incentive plan encourages setting challenging and specific goals. This aligns with the principles of goal-setting theory, which emphasizes the importance of setting goals that are specific, measurable, achievable, relevant, and time-bound (SMART goals). By encouraging employees to set challenging and specific goals, the SkyBlue incentive plan aims to motivate them towards higher performance and achievement.