Q4RQ - Horngren'S Financial And Managerial Accounting

Question

What is goal congruence?

Step-by-Step Solution

Answer

Goal congruence is the stage where the various departments of an organization share common goal.

Step 1: Meaning of Organization

Organization refers to the association of people united mutually to accomplish common goals stated by the management. An organization comprises various divisions such as production, administration, marketing, and many more. 

Step 2: Meaning of goal congruence

The term goal congruence refers to a situation where the multiple levels of an entity, such as lower, middle, and upper levels, perform their activities for the accomplishment of the same goal. Goal congruence leads to the accomplishment of the strategy of the organization.