Goal congruence is said to exist when members of the management team (or more broadly the work. force) share the same goals; and in this perspective goal congruence is seen as an essential objective of organization design. The stylized model presented in the chapter offers a subtly different perspective. Goal congruence is a constraint, manifest in the [IC] restriction requiring the selfinterested manager find it personally desirable (or incentive compatible) to behave in the organization' s best interest. Carefully discuss this notion of goal congruence as a constraint.

AppendixLO1