Businesses which are organized into divisions may encounter challenges in achieving desired results if they are involved in interdivisional transfer of inputs/outputs. A key consideration however, is the issue of goal congruence.

According to Denison and Mishra (2005), to achieve goal congruence the following ideas are important:

• The firm should be viewed as a pluralist entity where coalitions of individuals seek to express their own aspirations within the structure of the firm.

• Personnel cannot be viewed as people sharing the same goal, but also as people striving for such rewards such as power, security, survival, and autonomy.

Required:

Explain the relevance of goal congruence in a divisional zed entity and highlight the possible mechanisms for achieving it.

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Organization managers may encourage goal congruence by establishing specific shared objectives or se... View the full answer