Question

In: Operations Management

When the performance of a manger is evaluated the type of responsibility center is a factor...

When the performance of a manger is evaluated the type of responsibility center is a factor (cost, profit or investment center). In an effort to ensure a favorable performance evaluation, a manager may behave in a way that is inconsistent with the organization's goals. What can an organization do to help ensure goal congruence, i.e. that a manager is motivated to do what is best for the organization, not just what's best for themselves

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Expert Solution

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Organization can ensure goal congurence and motivate managers to show performance that is best for the organization not self interest by adopting Management by objective approach. This is the approach of performance evaluation in which SMART goals can be set where manager and organization's top management can set goals which aligned best interest of both manager and organization. When both agree on stated goals or objectives then manager will be on board to achieve them and lead to achievement of organization's goal.

Motivation is another way to bring manager consider the interest of organization. When manager are motivated intrinsicly like praises, respect, promotion, recognition like award for manager of the year then they feel motivated and proud from the insider. This will improve thier morale to work for the company.

These are some ways to bring manager on board to align thier goals with organization and leave self interest perspective and consider organization's perspective.


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