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Essay / Research Paper Abstract
A 4 page paper discussing allocation of general costs and how what is intended to be a reward can instead become a penalty. Creative Consumer Consultants (CCC) is a corporate consulting firm with offices in New York, Chicago, Paris and Little Rock that currently assigns general costs to each office in a degree dependent on the office's contribution to net income. Altering allocation but not total amounts results in more beneficial means of achieving long-term goals. Bibliography lists 2 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSacctCongru2.rtf
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Unformatted sample text from the term paper:
(CCC) is a corporate consulting firm with offices in New York, Chicago, Paris and Little Rock that currently assigns general costs to each office in a degree dependent on the
offices contribution to net income. Managers are free to make decisions they believe to be in the best interests of the company and their specific office, and they receive
bonuses based on (1) net income of the individual office and (2) sharing the profit of the company overall. The purpose here is to assess how changes in how
offices are charged for general costs could positively affect goal congruence within CCC. Moving in a Single Direction Goal congruence is a "condition
where employees, working in their own personal interest, make decisions that help meet the overall goals of the organization" (Noll, n.d.). Where goal congruence is high, employees make decisions
based on the good of the company as well as in their own self-interest. It is in their best interest to make sound decisions on the companys behalf so
that the business continues to grow and prosper, and they continue to receive rewards based on that growth and remain employed with all of the benefits they currently enjoy.
In short, it is not in the employees best interest to make decisions that will be harmful to the company in the long term. Such decisions negatively affect the
employees future. Certainly CCCs senior management wants to see each office do well over time. Offices such as the Little Rock location
cannot be expected to perform as well monetarily as the one in New York, but all should exhibit growth over time. It is
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