Martin, Inc. has a corporate policy that emphasizes high investor returns as a top strategic goal. An employee has identified a potential cost savings change for one of the company's existing product lines, the Unstoppable Vaccum, and this change will increase investor returns by 2%. Unfortunately, the cost savings is a result of lower quality raw materials. The change will likely result in a higher defect rate and some of these defects will make it into the hands of consumers.

If Martin, Inc. awards executive (manager) bonuses based on customer retention and satisfaction, which of the following statements is TRUE?

		Management's goals will be in conflict with investors and the strategic goals of the company.
		Management will suffer from information overload through the use of excessive performance metrics.
		Investors and managers will have goal congruence, but both will have goal conflict with employees.
		The employees will improve their quality of work due to the congruence between corporate strategic goals and managerial discretion.