Which of the following is true of goal congruence?
A) The alignment of managerial and organizational goals is often referred to as goal congruence.
B) Goal congruence occurs when a manager takes actions that improve budgetary performance in the short run but bring long-run harm to the firm.
C) Participative budgeting usually results in a lower goal congruence..
D) Goal congruence occurs when top management has total control of the budgeting process, allowing only superficial participation from lower-level managers.
E) An ideal budgetary system fails to achieve complete goal congruence and, simultaneously, leads to negative behavior.

Question

Quizplus · Accepted Answer

Goal congruence refers to the alignment of goals between managers and the organization. Option B is incorrect as it describes a situation where the manager's actions harm the firm in the long-term, which goes against the concept of goal congruence. Option C is incorrect as participative budgeting is shown to increase goal congruence by involving lower-level managers in the budgeting process. Option D is incorrect as it describes a budgeting process where top management has total control, which may not necessarily align with the goals of lower-level managers. Option E is incorrect as an ideal budgetary system should aim to achieve goal congruence, not lead to negative behavior.

Which of the Following Is True of Goal Congruence