This refers to a situation where the objectives of an organisation’s shareholders and its senior managers are aligned.
Goal congruence occurs when the incentives of the management team, for example salaries and bonuses, match the objectives of shareholders, for example increasing dividends or rising stock prices. Similarly, goal congruence occurs in hierarchical organisations when the goals or targets of staff at one level directly feed in to those of the level above. More generally the term is used when the objectives or actions of any two parties are aligned.
Goal congruence is a term normally found in performance management and financial management.
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