© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible...
Chapter Objectives
Identify three types of control and the components
common to all control systems.
Learn the two appro...
Fundamentals of Organizational Control
Control
 Comparing desired results with actual results and taking
corrective actio...
Types of Controls
Feedforward Control
 The active anticipation and prevention of problems,
rather than passive reaction
...
Figure 16.1: Three Types of Control
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated...
1. Bureaucratic Control - extensive rules and
regulations, top-down authority, tightly written job
descriptions and other ...
BUREAUCRATIC CONTROL CLAN CONTROL
Use of detailed rules and
procedures whenever possible.
Use of detailed rules and regula...
Organizational Control Subsystems
Strategic plans
Long-range plans
Annual operating budgets
Statistical reports
Perfo...
Components of
Organizational Control Systems
Objectives
 Measurable reference points (targets) for corrective
action
St...
Evaluation-Reward Systems
Goals of System
 To measure and reward individual and team
contributions to attaining organiza...
Identifying Control Problems
Executive Reality Checks
 Top managers periodically work at lower-level jobs to
become more...
Identifying Control Problems (cont’d)
Symptoms of Inadequate Control
 An unexplained decline in revenues or profits
 A ...
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible...
Define
Vision
Identify
Mission
Set Goals &
Objectives
Develop & Implement
Strategic Plans
Develop & Implement
Intermediate...
Upcoming SlideShare
Loading in...5
×

Final 2 controlling

127

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
127
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Final 2 controlling

  1. 1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
  2. 2. Chapter Objectives Identify three types of control and the components common to all control systems. Learn the two approaches to control system Discuss organizational control from a strategic perspective. Learn the components of organizational control system. Understand why Planning and Controlling are called he Siamese twin of Management Understand and discuss the Planning/Control Cycle © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2
  3. 3. Fundamentals of Organizational Control Control  Comparing desired results with actual results and taking corrective action as needed to keep things on track.  Checking, testing, regulating, verifying, or adjusting  Objectives are yardsticks for measuring actual performance.  Purpose of the control function: To get the job done despite environmental, organizational, and behavioral obstacles and uncertainties © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3
  4. 4. Types of Controls Feedforward Control  The active anticipation and prevention of problems, rather than passive reaction Concurrent Control  Monitoring and adjusting ongoing activities and processes Feedback Control  Checking a completed activity and learning from mistakes © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4
  5. 5. Figure 16.1: Three Types of Control © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5
  6. 6. 1. Bureaucratic Control - extensive rules and regulations, top-down authority, tightly written job descriptions and other formal methods for preventing and correcting deviations from desired behaviors and results. 2. Clan or Organic Control - flexible authority, loose job descriptions, individual self-controls and other informal methods of preventing and correcting deviations from desired behaviors and results. Approaches to Control System
  7. 7. BUREAUCRATIC CONTROL CLAN CONTROL Use of detailed rules and procedures whenever possible. Use of detailed rules and regulations only when necessary. Top-down authority with emphasis on positional power. Flexible authority with emphasis on expert power and networks of control. Activity-based job descriptions that prescribe day-to-day behavior Results-based job description that emphasize goals to be achieved. Emphasis on extrinsic rewards (wages, pensions, status symbols) for controlling performance. Emphasis on both extrinsic and intrinsic rewards (meaningful work) for controlling performance. Org. culture not recognized as source of control Org culture seen as a way of integrating org, group and individual goals for greater overall control.
  8. 8. Organizational Control Subsystems Strategic plans Long-range plans Annual operating budgets Statistical reports Performance appraisals Policies and procedures The organization’s culture © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8
  9. 9. Components of Organizational Control Systems Objectives  Measurable reference points (targets) for corrective action Standards  Guideposts on the way to achieving objectives  Benchmarking: Identifying, studying, and building upon the best practices of organizational role models © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9
  10. 10. Evaluation-Reward Systems Goals of System  To measure and reward individual and team contributions to attaining organizational objectives  To shape effort-reward expectancies in order to motivate better performance © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10
  11. 11. Identifying Control Problems Executive Reality Checks  Top managers periodically work at lower-level jobs to become more aware of operations. Internal Audits  Independent appraisals of organizational operations and systems are conducted to assess effectiveness and efficiency. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11
  12. 12. Identifying Control Problems (cont’d) Symptoms of Inadequate Control  An unexplained decline in revenues or profits  A degradation of service (customer complaints)  Employee dissatisfaction  Cash shortages caused by bloated inventories or delinquent accounts receivable  Idle facilities or personnel  Disorganized operations  Excess costs  Evidence of waste and inefficiency (scrap, rework) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12
  13. 13. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 PLANNING AND CONTROLLING: . . . “ THE SIAMESE TWIN OF MANAGEMENT” •Planning is the formal process of developing goals, strategies, standards and allocating resources while controls are the measures that help ensure that decisions, actions and results are consistent with those plans. Thus, planning and controlling go hand in hand. •Planning prescribes desired behavior and results while controls help maintain or redirect actual behavior and results. •Managers cannot effectively plan without accurate and timely information, controls provide some of this essential information. •Managers need plans to indicate the purposes to be solved by controls. Thus, planning and controls complement and support each other. •To conclude, without planning, there would be no way to control.
  14. 14. Define Vision Identify Mission Set Goals & Objectives Develop & Implement Strategic Plans Develop & Implement Intermediate Plans Develop & Implement Operational Plans Determine Areas to Control Establish Standards Measure Performance Compare Performance Against Standards Standards met? Recognize Performance Take Corrective Action as necessary Adjust Standards & Measures as necessary YES NO The Planning/Control Cycle
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×