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Socialization Mechanisms and Goal Congruence

Fri, October 24, 3:45 to 5:15pm, TBA

Abstract

This study examines how goal congruence is achieved when there is minimal reliance on formal performance measures. In a research setting where the firm does not use performance measures to motivate and direct employee behavior, we examine how socialization mechanisms (i.e., beliefs, mentoring, and peer pressure) influence employees’ perceptions of their work environment and goal congruence. Using survey data from 354 employees to estimate a structural equation model, we find that all three socialization practices are positively correlated with one another and thus work together to achieve control. Our results show that a working environment employees believe offers them security and long-term stability is important to ensuring that their goals are aligned with the firm’s. Moreover, the extent to which top management communicates core values, supervisors engage in mentoring, and peers encourage and monitor one another, are important management controls since they help create a secure and stable work environment.

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