2 learning Objectives define organizational control and also explain just how it rises organizational effectiveness. Describe the four steps in the control procedure and the way it operates end time. Recognize the key output controls, and also discuss their advantages and defect as method of coordinating and also motivating employees. Determine the main behavior controls, and also discuss their advantages and flaw as way of coordinating and also motivating employees. Discuss the relationship in between organizational control and change, and also explain why managing readjust is a critical management task

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3 Organizational ControlManagers monitor and regulate just how efficiently and also effectively one organization and also its members are performing the tasks necessary to attain organizational goals maintaining an organization on track, anticipating events, changing the organization to respond to opportunities and threats managers must monitor and also evaluate: Is the firm properly converting inputs right into outputs? are units the inputs and also outputs measure accurately? Is product top quality improving? Is the firm’s quality competitive with other firms? space employees responsive come customers? are customers satisfied with the solutions offered? room our supervisors innovative in outlook? does the regulate system encourage risk-taking? 3


4 Control Systems manage SystemsFormal, target-setting, monitoring, evaluation and also feedback solution that provide managers through information about whether the organization strategy and also structure space working efficiently and effectively. A great control system should: be functional so managers deserve to respond as needed. Provide accurate information about the organization. Provide information in a stylish manner. 4


5 Three species of control Figure 11.1 feeding forward ControlsUsed come anticipate problems prior to they arise so that troubles do not happen later during the conversion procedure Giving stringent product specifications to providers in advance IT deserve to be supplied to save in contact with suppliers and to screen their progress Concurrent Controls give managers prompt feedback on how effectively inputs room being transformed into outputs permits managers come correct difficulties as castle arise Feedback Controls supplied to carry out information at the output stage around customers’ reaction to goods and also services so that corrective action can be taken if important Figure 11.1 5


6 Control Systems and also IT Feedforward controlControl that allows managers come anticipate problems prior to they arise. Providing stringent product specifications to service providers in advancement


7 Example – university of Alabama Game-dayThe college of Alabama provides information for fans come be all set for football video game day parking and events This is an instance of feedforward control 7

8 Control Systems and IT Concurrent controlControl that offers managers immediate feedback on how effectively inputs space being transformed right into outputs so managers have the right to correct troubles as castle arise.

9 Control Systems and IT Feedback controlControl that gives managers information about customers’ reactions to goods and services so corrective action can it is in taken if necessary.

11 The Control procedure Establish standards of performance, goals, or targets versus which power is to it is in evaluated. Managers at each business level require to set their own standards. 11

12 The Control process Measure yes, really performanceManagers can measure outputs resulting from worker behavior or they deserve to measure the habits themselves. The an ext non-routine the task, the harder the is to measure habits or outputs 12

13 The Control process Compare actual performance against chosen criter of performance supervisors evaluate even if it is – and to what extent – power deviates indigenous the criter of performance chosen in action 1 13

14 The Control process Evaluate an outcome and start corrective action if the traditional is no being achieved If managers decide that the level of power is unacceptable, lock must try to adjust the means work activities are carry out to solve the trouble

16 Financial actions of PerformanceProfit Ratios – measure how properly managers space using the organization’s sources to generate revenues Return on invest (ROI) – organization’s network income prior to taxes divided by its total assets most typically used jae won performance measure up 16

17 Financial measures of PerformanceOperating margin calculate by splitting a suppliers operating profit by sales revenue gives managers v information about how successfully an organization is making use of its resources

18 Financial actions of PerformanceLiquidity ratios measure exactly how well managers have safeguarded organizational resources to have the ability to meet short-term duties Leverage ratios measure up the level to which managers use debt or same to finance ongoing operations 18

19 Financial measures of PerformanceActivity ratios present how well supervisors are producing value from business assets Inventory sales Days sales outstanding 19

20 Organization-Wide score SettingOrganizational goals Each department within the certain is given particular goals that must be met in order come attain overall organizational goals. Goals must be set appropriately so that managers are motivated to accomplish them number 11.4 20

21 Output regulate Operating BudgetsBlueprint the states just how managers intend to use business resources to attain organizational objectives efficiently. Each division is evaluate on its own budgets for cost, revenue or profit. Managers are evaluate by how well they fulfill goals for managing costs, generating revenues, or maximizing revenues while continuing to be within your budgets. 21

22 Effective output ControlObjective gaue won measures complicated goals and performance standards appropriate operating budgets

23 Problems with Output ControlManagers must produce output criter that motivate at all levels need to not cause managers to behave in inappropriate ways to attain organizational objectives 23

24 Behavior regulate Direct supervisionManagers who proactively monitor and also observe the behavior of their subordinates Teach subordinates proper behaviors interference to take corrective action Most immediate and also potent type of behavioral control can be an effective way of inspiring employees 24

25 Problems with straight SupervisionVery expensive since a manager can personally control only a relatively small variety of subordinates efficiently Can demotivate subordinates if they feel the they space under such close scrutiny the they are not complimentary to make their very own decisions

26 Management by ObjectivesManagement by missions (MBO) formal device of evaluating subordinates because that their capacity to achieve particular organizational objectives or performance standards and to meet operating budgets 26

27 Management by ObjectivesSpecific goals and also objectives are developed at every level of the company Managers and also their subordinates together identify the subordinates’ goals Managers and also their subordinates periodically review the subordinates’ progression toward meeting objectives

28 Bureaucratic Control bureaucratic ControlControl through a system of rules and standard operating procedures (SOPs) the shapes and regulates the actions of divisions, functions, and individuals. 28

29 Problems with bureaucratic ControlRules easier to make than discarding them, leading to bureaucratic “red tape” and also slowing organizational reaction time to problems. Civilization might come to be so used to automatically following rules that they stop thinking for themselves 29

30 Clan control Clan ControlThe manage exerted on individuals and also groups in an company by mutual values, norms, criter of behavior, and expectations. 30

31 Organizational ChangeMovement that an organization away indigenous its present state and also toward some wanted future state to rise its efficiency and also effectiveness

33 Lewin’s Force-Field concept of ChangeThere space a wide selection of forces occurring from the means an organization operates, native its structure, culture, and control systems that make organizations resistant to change To obtain an company to change, managers must find a means to increase the pressures for change, alleviate resistance to change, or carry out both simultaneously number 11.6 33

34 Evolutionary and Revolutionary Changegradual, incremental, and also narrowly focused constant attempt to improve, adapt, and change strategy and also structure incrementally come accommodate transforms in the setting

35 Evolutionary and also Revolutionary ChangeRapid, dramatic, and broadly focused entails a bold effort to quickly uncover ways to be effective Likely to result in a radical shift in ways of act things, new goals, and a brand-new structure for the organization

37 Implementing the ChangeTop Down readjust A fast, revolutionary technique to readjust in which optimal managers determine what demands to be adjusted and then move quickly to implement the changes throughout the organization.

38 Implementing the ChangeBottom-up change A gradual or evolutionary strategy to change in which managers at every levels job-related together to develop a detailed setup for change.

39 Evaluating the change BenchmarkingThe process of comparing one company’s power on details dimensions v the power of other, high-performing organizations.

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40 Video Case: using Facebook in ~ WorkWhy can output control be preferable to actions control because that a manager whose employees use Facebook at work? execute you think job should have actually policies to ban or limit using Facebook and similar Web sites purely because that entertainment at work? using Facebook at work-related Teaching Objective: To check out workplace usage of social networking sites in regards to organizational manage Summary: Facebook and other social networking sites are hugely famous not just with teens and those in your 20s but additionally by larger people. Your popularity carries end to the workplace, distracts employees, reasons lost productivity, and worse. While plenty of employers tolerate Facebook use in the office as lengthy as employees complete their work, others have banned that is use. Questions: Why might output manage be preferable to habits control for a manager whose employees usage Facebook at work? Output manage evaluates performance quite than behavior and also measures what is really important. A manager offers clear goals or targets that will ideal measure each employee’s efficiency, quality, innovation, and responsiveness to customers. If employees are achieving power goals, the manager may wish to permit leeway because that employees occasionally to use Facebook and similar sites. Habits control through straight or strict supervision of all tasks can demotivate subordinates. Banning facebook or other net sites might make employees feel that they space under such close scrutiny the they space not free to do their own decisions or trusted sufficient to acquire their work done. How might clan control affect employee usage of Facebook and other society networking sites? Clan regulate takes benefit of the power of organizational society to save employees focused on what is best for the organization and also how to use sources to develop value. When employees are motivated to achieve goals, they would certainly be much more likely come limit your purely personal distractions choose Facebook and also other net sites. A strong, positive culture would likewise make it much less likely the employees would post an adverse messages around their employer on their facebook pages. Do you think employers should have actually policies to half or limit utilizing Facebook and comparable Web website purely because that entertainment at work? There may supporters for both sides of the issue. Part students will probably say that employees must be responsible for their time as long as they complete their work. Part students are most likely to point out the banning Facebook would not remove time wasting and also would reason resentment.You are watching: The many immediate and also potent form of behavior control is:See more: Love Can adjust The world In A Moment, text Cooper Lee ※ Mojim A ban would certainly be difficult to bring out unless the company’s server can prevent access to the site or can keep track of just how much time individual employees usage it. 40