Goal Congruence

What is Goal congruence?

• The goals of the organization's individual
members should be in alignment with the
goals of the organization.
• In a goal congruence process, the actions
people are led to take in accordance with their
perceived self-interest are also in the best
interest of the organization.
 Informal Factors that influence Goal
Congruence
External Factors Internal Factors
• Norms of desirable behaviour that exist
Culture
in the society of which the organisation
is a part .
• Referred to as work ethic-loyalty to the Management style
organization, their diligence, spirit, their
pride in doing a good job. Informal organisation
Region-specific
Eg- Silicon Valley ( entrepreneurial spirit, a Perception and
zest for hard work, high ambition, a communication
preference for informal work settings.)

Industry-specific
Eg- Defence People.
 Formal factors
• Organisation structure
– Functional structure
– Business unit structure
– Matrix Structure
Functional Structure
 Functional Structure
• In which each manager is responsible for
separate function

• Advantages
– Specialisation
– Efficiency
– Better supervision
• Dis-Advantages
– No way of determining effectiveness of individual
manager
– Dispute resolution only at top level
– Inadequate for diversified products
– Prevents cross-functional coordination
 BUSINESS UNITS
• A Business Unit is responsible for all the functions involved in producing
and marketing a specified product line.

• Business Unit managers act almost as if their units were separate

companies.

• It is suitable for medium sized to big companies, expanding geographically

or on customer base.

• Business Units may be divided based on :

– Markets served
– Product Lines
– Geography
Strengths
• High customer satisfaction
• High task coordination
• Clear performance responsibility
• General management training.

Weaknesses
• Resources may not be utilized properly
• Focus on division’s objectives
• Coordination between headquarter and the division
• Loss of control
 MATRIX STRUCTURE
• Matrix structure is a hybrid of divisional and functional structure.

• This Hybrid design has divisional units as well as functional departments

specialized and centralized in the headquarter.

• Typically used in large multinational companies, the matrix structure

allows for the benefits of functional and divisional structures to exist in
one organization
 Strengths
• Better Utilization of resources
• Enhances skill development
• Communication
• Provides flexibility

Weaknesses
• Dual line of command
• Is time consuming
• Implementation is difficult
Thank You!