Goal Congruence

Individuals work in different But they must come together as

hierarchies and handles far as Company’s Goal is
different responsibilities & concerned,(there action must
may have different goals. speak Co’s language.)

October 17, 2008 hmahesh45@yahoo.com, VIM Pune 1

 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
October 17, 2008 hmahesh45@yahoo.com, VIM Pune 2
 Goal Congruence
•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.
October 17, 2008 hmahesh45@yahoo.com, VIM Pune 3
 Goal Congruence
• Every individual working in an organization
has got his own motive to do the work.
Individuals act in their own interest, based on
their own motivations. And it is always not
necessarily consistent with the Co’s goal.
• In a goal congruence process, the actions
the people are led to take in accordance
with their perceived self interest are also in
the best interest of the organization i.e.
• Goal congruence ensures that the action
of manager taken in their best interest is
also in the best interest of the
organization. hmahesh45@yahoo.com, VIM Pune
October 17, 2008 4
 Scope of Strategy
execution Goal Congruence

Strategic
Goal

Control Efforts

• MCS sees that how actions of individuals are put/led to

achieve the Co’s goal?
• Management control process helps in brining the
consistency, as far as possible, in these diverse goals.
October 17, 2008 hmahesh45@yahoo.com, VIM Pune 5
 Significance of Goal Congruence
• Ensures frictionless working.

• Ensures achievement of organization’s goal/strategic

objective
• Ensures coordination & motivation of all
concerned.
• Ensures consistency in the working of all concerned.
• Gives fair chance to its employees to achieve their
personal
goals.
• Enhances the loyalty towards the company.
• Satisfies prime requirement of MCS.

October 17, 2008 hmahesh45@yahoo.com, VIM Pune 6

 Factors those influence the Goal Congruence
I. Informal Factors –
A.     External factors – set of attitudes of the
society, work ethics of
the society
B.     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)  A strict profit
October 17, control
2008 plan hmahesh45@yahoo.com, VIM Pune 7
 Factors those influence the Goal Congruence

II Formal Factors –
A. MCS strategy itself
B. Rules – Instructions, manuals and
circulars
Physical controls,
system safeguards,
task control system.

October 17, 2008 hmahesh45@yahoo.com, VIM Pune 8

 MCS - A Formal process Relating MCS to Organizational Goal
Co’s Goals & Strategies

Prepare Strategic
Revise Plans for
Implementation
Everything
Prepare Annual
Revise the
Revise
Programs/ Budgets percolates from
Goals
/Policies
the Company’s
Measure
(Interactive Responsibility Center’s strategic goal.
MCS) Performance
Anything loosing
Report Actual & the sight of goal
Reward
Feedback
Budgeted will be
immediately taken
Compare A V/s B
note of and a
Corrective Action corrective action is
initiated to bring
Satisfactory Non-Satisfactory
back the activity
on the track.
Feedback

October 17, 2008 hmahesh45@yahoo.com, VIM Pune 9

 Thanks

October 17, 2008 hmahesh45@yahoo.com, VIM Pune 10