Goal Congruence

Individuals work in different hierarchies and handles different responsibilities & may have different goals.
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But they must come together as far as Companys Goal is concerned,(there action must speak Cos language.)
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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 Companys current financial position may not let to lose the strings
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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 organizations score card too??, if it is so then only one can say the organization is marching towards a common goal.
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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 Cos 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.
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Goal Congruence
Scope of Strategy execution Control Efforts
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Strategic Goal

MCS sees that how actions of individuals are put/led to achieve the Cos goal?
Management control process helps in brining the consistency, as far as possible, in these diverse goals.
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Significance of Goal Congruence

Ensures frictionless working. Ensures achievement of organizations 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.

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Factors those influence the Goal Congruence

I. Informal Factors A. B. 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) A strict profit control plan Budget A tentative guiding profit plan
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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.

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MCS - A Formal process Relating MCS to Organizational Goal

Cos Goals & Strategies Prepare Strategic Plans for Implementation Prepare Annual Programs/ Budgets Measure Responsibility Centers Performance

Revise

Revise the Goals /Policies (Interactive MCS)

Revise

Everything percolates from the Companys strategic goal. Anything loosing the sight of goal will be immediately taken note of and a corrective action is initiated to bring back the activity on the track.

Reward Feedback

Report Actual & Budgeted

Compare A V/s B Corrective Action

Satisfactory

Non-Satisfactory

Feedback

April 25, 2014