Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
4959353 | European Journal of Operational Research | 2017 | 38 Pages |
Abstract
In multi-division organizations, goal congruence between different divisions and top management is critical to the success of management. In this paper, drawing upon a nonparametric framework to model production technology, we derive a necessary and sufficient condition for a firm with multiple divisions to be goal-congruent, and then extend it to a goal congruence testing measure, which coincides with a data envelopment analysis (DEA) model. The goal congruence measure not only shows empirically whether the firm is goal-congruent or not, but also provides a measurement for the degree of goal incongruence. To be goal-congruent, resources shared among divisions are suggested to be allocated so that the conditions for an optimizable operation are satisfied. In addition, goal-congruent firms are verified to be cost efficient. All findings in this research are examined and illustrated with a dataset of 20 bank branches with shared resources for service and sales divisions.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Ding Jingjing, Dong Wei, Liang Liang, Zhu Joe,