The purchasing manager is evaluated by his/her supervisors based on purchasing inventory at the lowest price. Consequently, the purchasing manager knowingly orders materials only based on price. This has resulted in the purchase of inferior quality materials. This improved the purchasing manager's performance evaluation, but had a negative impact on production due to an increase in scrapped materials. This situation is an example of a failure of:
A) goal congruence
B) management perquisites
C) management by exception
D) control theory

Question

Quizplus · Accepted Answer

This scenario highlights a failure of goal congruence, where the purchasing manager's individual goals (cost savings) were not aligned with the overall organizational goal of producing high-quality products.

The Purchasing Manager Is Evaluated by His/her Supervisors Based on Purchasing