goal divergence

Quick Reference

The situation in which there is a disparity or conflict between the goals of those who should ideally be working together to achieve mutually beneficial outcomes. In business, goal divergence may arise between shareholders and managers, managers and workers, or between a manufacturer or service provider and its marketing channels. The creation of goal convergence, rather than divergence, is a major concern of agency theory (see Agency Relationship.)

Subjects: Business and Management.

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