GOAL CONGRUENCE

 J.K.OKE
WHAT IS A GOAL?
“A GOAL IS A PROJECTED STATE OF
AFFAIRS THAT A PERSON, A SYSTEM OR
AN ORGANISATION, PLANS OR INTENDS
TO ACHIEVE – IT IS BASICALLY A
PERSONAL OR ORGANISATIONAL
DESIRED END-POINT ”.
THE GOAL COULD BE FINANCIAL OR
NON-FINANCIAL.
GOALS COULD BE STATED AS REGARDS
THE PROPOSED / DESIRED
ACCOMPLISHMENTS IN MULTIPLE
AREAS.
MULTIPLE AREAS OF GOALS
MARKETING –SHARE / LEADERSHIP
FINANCE- PROFITS / EPS
HUMAN RESOURCES-PREFERRED EMPLOYER
OPERATIONS-MOST COMPETITIVE
PRODUCTION / PRODUCTIVITY
QUALITY - BENCHMARKING
SERVICE EXCELLENCE
RESEARCH & DEVELOPMENT
CORPORATE GOVERNANCE
CORPORATE SOCIAL RESPONSIBILITY
INNOVATION ............ETC.
WHY GOAL CONGRUENCE?
HOWEVER, THESE GOALS BEING SBU-WISE
OR FUNCTIONAL OR DEPARTMENTAL,
MAY NOT LEAD TO SYNERGY, BUT, “TTMM”.
INDEED, THEY MAY LEAD TO
INTER-SBU,
INTER-FUNCTIONAL,
INTER-DEPARTMENTAL, AND EVEN,
INTER-PERSONAL CONFLICTS.
THERE IS, THEREFORE,
A NEED FOR “GOAL CONGRUENCE”.
WHAT IS GOAL CONGRUENCE?
CONGRUENCE CAN BE VIEWED /
DEFINED IN MORE WAYS THAN ONE.
CONGRUENCE IS THE STATE ACHIEVED
BY COMING TOGETHER, THE STATE OF
AGREEMENT.
CONGRUENCE IS THE INTEGRATION OF
MULTIPLE GOALS,
EITHER WITHIN AN ORGANISATION,
OR,
BETWEEN MULTIPLE GROUPS.
WHAT IS GOAL CONGRUENCE?
CONGRUENCE CAN ALSO BE SEEN AS A
PROCESS, WHERE THE ACTIONS PEOPLE
ARE LED TO TAKE, IN ACCORDANCE
WITH THEIR PERCEIVED SELF-INTEREST,
ARE ALSO IN THE BEST INTEREST OF
THE ORGANISATION.
CONGRUENCE IS THE REASON FOR AND
RESULT OF THE ALIGNMENT OF GOALS
TO ACHIEVE AN OVER-REACHING
MISSION AS SAME GOALS ARE SHARED
BY THE TOP, MIDDLE AND OPERATIONAL
MANAGERS AND THEIR SUB-ORDINATES.
WHY GOAL CONGRUENCE?
IF EVERY SBU OR FUNCTION OR
DEPARTMENT ADAMANTLY AND
AGGRESSIVELY STICKS TO ITS
INDIVIDUAL GOAL / S,
IT IS BOUND TO LEAD TO CONFLICTS,
AND,
ULTIMATELY LOSS TO THE BUSINESS
ORGANISATION.
GOAL CONGRUENCE, THEREFORE, HAS TO
BE ENSURED / ACHIEVED AND SUSTAINED.
TO ILLUSTRATE
GOAL CONGRUENCE…
THE ORGANISATION CAN ACHIEVE ITS
GOALS MORE EFFECTIVELY AND
PERFORM BETTER
WHEN ORGANISATIONAL GOALS CAN
BE, INDEED ARE, WELL-ALIGNED WITH
THE GOALS OF THE SBU, FUNCTIONAL,
DEPARTMENTAL, PERSONAL AND GROUP
GOALS OF SUPERIORS AND SUB-
ORDINATES.
WHY GOAL CONGRUENCE?
GOAL CONGRUENCE CAN BE ACHIEVED
WHEN EMPLOYEES, WORKING IN THEIR
OWN PERCEIVED BEST INTERESTS, MAKE
DECISIONS THAT HELP MEET THE
OVERALL GOALS OF THE ORGANISATION.
INDEED,
GOAL CONGRUENCE ENSURES THAT THE
GOALS OF THE ORGANISATION ARE THE
SAME AS THE GOALS OF THE INDIVIDUAL
BUSINESS UNIT / SEGMENT / FUNCTION /
DEPARTMENT. (REMEMBER “PMS”?)
TO ILLUSTRATE
GOAL CONGRUENCE…
WHILE THE HR DEPARTMENT
WOULD LOVE TO EXTEND MAXIMUM
BENEFITS TO THE EMPLOYEES,
(EXAMPLES OF MICRO-SOFT-HYD
LOCATION
GOOGLE- TEAM TOUR TO HAWAII
ISLAND AFTER COMPLETING PROJECT
EARLIER)
FINANCIAL ASPECTS / MARGINS
CANNOT BE OVERLOOKED.
TO ILLUSTRATE
GOAL CONGRUENCE…
 IF THEMARKETING PERSONNEL
AGGRESSIVELY BOOK ORDERS, AND OFFER
LIBERAL CREDIT TERMS, WITHOUT
REFERENCE TO THE PRODUCTION AND
FINANCE DEPARTMENT, RESPECTIVELY,
THE COMPANY MIGHT BE ABLE TO BOOK
HUGE ORDERS , ONLY TO REALISE THAT IT
IS STUCK UP WITH PROBLEMS OF DELAYED
DELIVERIES AND ORDER BACK-LOGS.
 LIBERAL CREDIT TERMS MIGHT HAVE
ADVERSE IMPACT ON THE CASH / FUNDS
FLOW, WORKING CAPITAL AVAILABILITY,
LIQUIDITY &, ULTIMATELY ON
TO ILLUSTRATE
GOAL CONGRUENCE…
 LIBERAL CREDIT TERMS MIGHT HAVE
ADVERSE IMPACT ON
 THE CASH / FUNDS FLOW,
 WORKING CAPITAL AVAILABILITY,
 LIQUIDITY,
 &, ULTIMATELY ON
 PROFITABILITY / COMPETITIVENESS.
TO ILLUSTRATE
GOAL CONGRUENCE…
HENCE,
THERE HAS TO BE CLEAR
UNDERSTANDING AND COMMUNICATION
TO ENSURE THAT THE GOALS ARE NOT
DECIDED IN A SKEWED MANNER
AND THE ORGANISATION DOES NOT
SUFFER,
 AND , ULTIMATELY,
THE STAKEHOLDERS, INCLUDING THE
EMPLOYEES, DO NOT SUFFER.
FACTORS IMPACTING
GOAL CONGRUENCE
GOAL CONGRUENCE CAN BE IMPACTED /
INFLUENCED BY TWO TYPES OF
FACTORS VIZ. :
THE INTERNAL FACTORS, AND,
THE EXTERNAL FACTORS.
FACTORS IMPACTING
GOAL CONGRUENCE
INTERNAL FACTORS REFER TO:
ORGANISATIONAL SYSTEMS,
ORGANISATIONAL PROCEDURES,
THE ORGANISATIONAL CULTURE-THE
COMMON BELIEFS, SHARED VALUES,
NORMS OF BEHAVIOUR AND
ASSUMPTIONS THAT ARE IMPLICITLY
ACCEPTED AND EXPLICITLY
MANIFESTED IN THE ORGANISATION.
FACTORS IMPACTING
GOAL CONGRUENCE
EXTERNAL FACTORS ARE LIKE:
GLOBALISATION
GOVT. POLICY
THE EXTERNAL ENVIRONMENT,
THE NORMS OF DESIRABLE BEHAVIOUR
THAT EXIST IN THE SOCIETY, OF WHICH
THE ORGANISATION IS A PART (SUCH AS
ATTITUDES, WORK ETHICS, ETC.).
(WIPRO - DATING ALLOWANCE)
TO CONCLUDE…
GOAL CONGRUENCE EXISTS WHEN
INDIVIDUALS AND GROUPS WORK
TOGETHER TOWARDS ACHIEVING THE
ORGANISATION’S GOALS –
MANAGERS, AT ALL LEVELS AND
FUNCTIONS, WORKING IN THEIR OWN
BEST INTERESTS AND TAKING ACTIONS
THAT ALIGN WITH THE OVERALL GOALS
OF THE ORGANISATION AND THE TOP,
MIDDLE AND OPERATIONAL MANAGERS
WORKING IN SYNC AND WITH SYNERGY.
TO CONCLUDE…
IT IS
IMPERATIVE TO REMEMBER THAT
MANAGERIAL EFFORTS / EXERTIONS
INCLUDING BOTH PHYSICAL AND
MENTAL ACTIONS,
TOWARD REACHING THE GOALS,
MUST ACCOMPANY GOAL CONGRUENCE.
TO CONCLUDE…
LET US ALSO NOT FORGET THAT GOAL
CONGRUENCE IS ONE OF THE MAJOR
CRITERION USED TO JUDGE THE
PERFORMANCE OF THE ORGANISATION.
INDEED,
THE EXISTENCE OR ABSENCE OF GOAL
CONGRUENCE IS THE DIFFERENTIATOR
BETWEEN ORGANISATIONS THAT LOSE
OR WIN, INDEED OUT-PERFORM
AGAINST THEIR COMPETITORS.
LET US DISCUSS
A CASE FOR
GOAL CONGRUENCE
CASE FOR DISCUSSION
THE BoD OF ABC LTD. HAVE
CONCLUDED THAT ABC LTD, HAS
MULTIPLE GOALS.
THEY ALSO CONCLUDED THAT THE
PERFORMANCE OF SENIOR
MANAGERS SHOULD BE JUDGED IN
TERMS OF THOSE GOALS.
THE GOALS IDENTIFIED WERE:
1. TO GENERATE A HIGHER RETURN
FOR SHARE-HOLDERS.
2. TO MAINTAIN A HIGH MARKET
SHARE.
3. TO INCREASE PRODUCTIVITY
ANNUALLY.
4. TO OFFER EXCELLENT AFTER-
SALES SERVICE
THE GOALS IDENTIFIED WERE:
5. TO OFFER AN UP-TO-DATE
PRODUCT RANGE OF HIGH
QUALITY
6. TO BE KNOWN AS CARING
EMPLOYERS
7. TO ACKNOWLEDGE SOCIAL
RESPONSIBILITIES.
YOU,
AS THECONTROLLER OF ABC LTD.,
ARE REQUIRED TO
SET OUT BRIEFLY,
AND WITH REASONS,
SUITABLE MEASURES OF
PERFORMANCE FOR EACH OF
THE STATED GOALS.