Purchase Solution

Reduce goal incongruence caused by return on investment?

Not what you're looking for?

Ask Custom Question

a) What is goal incongruence?
b) How can using the metric "return on investment" for performance evaluation lead to goal
incongruence?
c) What can a firm do to reduce goal incongruence caused by using "return on investment" for
performance evaluation?

Purchase this Solution
Solution Summary

Your tutorial is 547 words plus a reference and gives some real world examples to illustrate.

Solution Preview

(a) Goal incongruence results from differences in goals of the organization and what the workers are going. Often the worker is doing something (or failing to do something) that won't meet the firm's goals because they don't know the firms goals or the firm has many goals and they don't know which to honor when. So, in this case, the "confusion" or "ignorance" leads the workers to do whatever they think is a good idea, having little understanding if the activity is effective in meeting the firm goals. The other kinds of goal congruence is when the workers have different goals than the firm and so there is a clash between organization goals and personal goals. When the incongruence is causes by ignorance or confusion from multiple goals, good communication can often help. When the incongruence is caused by ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • Profit maximization, maximization of shareholder wealth?

    However, in a volatile or penny stock, people are looking for a higher degree of return on their investment since their initial investments are not safe. Good luck! Why is profit maximization, by itself, an inappropriate goal?

  • Managerial Accounting of Original Works on Commission

    return on investment (ROI)?

  • Description of two different personality theories.

    A therapy goal would involve the use of "psychoanalysis" to reduce negative symptoms. 2. Carl Roger's Personality Theory Carl Roger's developed the person-centered theory which is a "humanistic approach".

  • Overheads, Return on Investment

    2) Sebastian, an investment center manager in RKH Corporation, is trying to boost the current period's return on investment. Which of the following actions will achieve that goal? 3.

  • 10 Finance Questions

    Diversifiable risk is caused by events unique to a single business. b. Portfolio risk is caused by events unique to a single business. c. Adding similar investments to a portfolio reduces risk more than adding randomly chosen investments does.

  • Credit policy for a company

    Increase sales by offering customers competitive extended credit terms. 4. Avoid cash flow problems caused by customers with long payment cycles 5.

  • Components of financial risk

    How do companies employ diversification to reduce risk? Fianacial risk The variability of Earning per share caused by use of finnacial leverage is called financial risk.

  • International capital movements

    On the other hand, the capital outflow allows the domestic firms and citizens to earn a higher rate of return from the other market by making arbitrage profits.

  • Financial Management

    But the specific goal for the investment will help to create the 'win-win' situation for the individual investors. To reduce risk and increase in return, the individual investor should select the securities after the market research.

View More Related Solutions