A method for performing shoulder arthroplasty or hemiarthroplasty is provided. The method includes generating navigational reference information relating to position and orientation of a body part forming at least a portion of the shoulder joint. The reference information may be stored in a computer. Navigational references are attached to the body part and an object. Information is received regarding the position and orientation of the object with respect to the body part and the object is navigated according to this information. The body part may be modified using the object and the modification may be displayed on a monitor associated with the computer. The navigational references may be used to track a shoulder arthroplasty trial component. Information is received regarding the position and orientation of the trial component with respect to the body part. This information is used to navigate the trial component to the body part.