ACCA Financial Management (F9) Certification Practice Exam

Why is goal congruence important in an organization?

1. It reduces costs significantly

2. It ensures all actions support the overall objectives

3. It increases competition between employees

4. It minimizes the need for supervision

The correct answer is: It ensures all actions support the overall objectives

Goal congruence is crucial for organizations because it ensures that all employees' actions and decisions align with the overall objectives of the organization. When employees work towards common goals, it fosters collaboration and enhances the effectiveness of the organization's strategies. This alignment aids in creating a cohesive environment where efforts are coordinated, resources are effectively utilized, and the organization can achieve its long-term objectives efficiently. This focus on alignment can lead to improved decision-making at all levels, as employees are more likely to consider how their work contributes to wider goals rather than just their own immediate responsibilities. This not only enhances productivity but also promotes a shared sense of purpose among staff, leading to a more engaged workforce. In contrast, options that imply cost reduction or increased competition may not directly relate to the strategic coherence needed for goal congruence. While reduced costs and minimized supervision can be beneficial outcomes of a well-aligned organization, they are not the primary reasons why goal congruence is important. Additionally, increased competition among employees can potentially undermine teamwork and collaborative efforts, which are essential for achieving shared goals.