ACCA Financial Management (F9) Certification Practice Exam

What is described by goal congruence within an organization?

1. Conflict among departments

2. Alignment of agents' objectives with organizational objectives

3. Inefficiencies in resource usage

4. Competition between teams

The correct answer is: Alignment of agents' objectives with organizational objectives

Goal congruence refers to the alignment of the objectives of individual stakeholders, specifically agents within an organization, with the overall objectives of the organization itself. This concept is critical because when individual goals align with that of the organization, it leads to more effective decision-making and better performance. When employees or departments work towards goals that support the broader objectives of the organization, it fosters teamwork and collaboration, ensuring that efforts are not duplicated or wasted. This alignment can improve efficiency, resource utilization, and ultimately support the organization's growth and success. In contrast, conflict among departments, inefficiencies in resource usage, and competition between teams can lead to misalignment of goals, which can hinder organizational performance. Therefore, the core idea of goal congruence is about creating a unified direction where all efforts contribute toward shared success.