Goal Congruence


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Mar 20, 2007
Toronto, Canada
What do you understand by Goal Congruence? What are the informal factors that influence goal congruence?
This term is used when the same goals are shared by top managers and their subordinates. This is one of the many criteria used to judge the performance of an accounting system. The system can achieve its goal more effectively and perform better when organizational goals can be well aligned with the personal and group goals of subordinates and superiors. The goals of the company should be the same as the goals of the individual business segments. Corporate goals can be communicated by budgets, organization charts, and job descriptions.

Goal Congruence- Meaning
Individuals work in different hierarchies and handle different responsibilities & may have different goals. But they must come together as far as Company’s Goal is concerned (there action must speak Co’s language.)

Goal Congruence
Example 1
– The HR manager has devised a HR training program to enhance the skills of its sales personnel,with an objective to enhance their productivity But if company is in strategic need of attaining a certain sales volume in a given quarter, it can not do so on account of non availability of personnel.

Example 2–
The marketing department has planned an impressive advertising campaign, which promises good returns, But say due to cash crunch Company’s current financial position may not let to lose the strings

Example 3
– Production Manager may get a good applause for reducing cycle time; But at what cost? Building up the high inventory i.e. higher investment in current assets. While doing so he just overlooked the financial interest of the company. • After completing the given activity in more efficient manner the concerned manager scores the point/s on his score card. • Whether his actions are leading to scoring of points on the organization’s score card too? if it is so then only one can say the organization is marching towards a common goal.

Every individual working in an organization has got his own motive to do the work. Individuals act in their owninterest, based on their own motivations. And it is always not necessarily consistent with the Co’s goal. In a goalcongruence process, the actions the people are led to take in accordance with their perceived self interest are alsoin the best interest of the organization i.e. Goal congruence ensures that the action of manager taken in their bestinterest is also in the best interest of the organization.Informal factors that influence goal congruence:External factors – set of attitudes of the society, work ethics of the society

Internal factors – (Factors within the organization)
•Culture-Common beliefs, shared values, norms of behavior & assumptions
•Implicitly accepted and explicitly built into.
•Mgt. Style – Informal/Formal
•The Communication Channels
•Perception and Communication – e.g. Budget (meaning) strict profit.
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