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Controlling and Organizational Change (Principles of Management)


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Controlling and Organizational Change (Principles of Management)

  1. 1. controlling Controlling Functions: SourceL Samuel Certo
  2. 2.  – the first element of the operating system which is to be measured. We select a specific characteristic because a correlation exists between it and how the system is performing. The characteristic can be the output of the system during any stage of processing or it may be a condition that is the result of the system.  - is a means for measuring the characteristic or condition. Determines the need for correction by comparing what is occurring with what has been planned. Some deviation from plan is usual and expected, but when variations are beyond those considered acceptable, corrective action is required. It involves a sort of preventative action which indicates that good control is being achieved.  - is the corrective action taken to return the
  3. 3. • - Corrective properties may sometimes be built into the controller (for example, to modify the time the lights are turned on as the days grow shorter or longer), but this would not close the loop. In another instance, the sensing, comparison, or adjustment may be made through action taken by an individual who is not part of the system. • If control is exercised as a result of the operation rather than because of outside or predetermined
  4. 4. Most organized systems are some combination of man and machine; some elements of control may be performed by machine whereas others are accomplished by man. systems can be complex because of the sophisticated technology, whereas control of people is complex because the elements of control are difficult to determine. Man must as the controller when measurement is subjective and judgment is required.
  5. 5. In , the approach used in the program of review and evaluation depends on the reason for the evaluation serves to regulate the day-to-day output relative to schedules, specifications, and costs.
  7. 7. Fundamentals of Changing an Organization Defining Changing an Organization Change Versus Stability
  8. 8. Changing an Organization Is the process of modifying an existing organization to increase organizational effectiveness.
  9. 9. The study of organizational change is extremely important because managers at all organizational levels are faced throughout their careers with the task of changing their organization.
  10. 10. Change Versus Stability (1) High death probability (slow) (2) High survival probability (3) High survival and growth probability (4) Certainty of death (slow) (5) Certainty of death (quick) (1) (2) (3) (4) (5) High HighLow Low STABILITY ADAPTATION
  11. 11. Factors to consider when changing an organization The change agent Determining what should be changed The kind of change to make Individuals affected by the change Evaluation of the change
  12. 12. The change agent Is the individual inside or outside the organization who tries to modify the existing organizational situation.
  13. 13.  As the most important factor managers need to consider when changing an organization, Special Skills are necessary for success as a change agent. Among them are the ability to determine how a change should be made, the skill to solve change-related problems, and facility in using behavioral science tools to influence people appropriately during the change process. The most overlooked skill of successful change agents, however, is the ability to determine how much change employees can withstand.
  14. 14. Determining what should be changed Another major factor managers need to consider is exactly what should be changed within the organization. In general, managers should make only those changes that will increase organizational effectiveness.
  15. 15. Three classes of factors Organizational effectiveness depends primarily on activities entering around three classes of factors. 1.People 2.Structure 3.Technology
  16. 16. TECHNOLOGICAL FACTORS Are any types of equipment or processes that assist organization members in the performance of their jobs.
  17. 17. The kind of change to make  Is the third major factor that managers need to consider when they set out to change an organization.
  18. 18. Changes can be categorized as TECHNOLOGICAL STRUCTURAL PEOPLE
  20. 20. TECHNOLOGICAL CHANGE Emphasizes modifying the level of technology in the management system.
  21. 21. STRUCTURAL CHANGE It emphasizes increasing organizational effectiveness by changing controls that influence members during the performance of their jobs. Structural change is change aimed at increasing effectiveness through modifications to the existing organizational structure.
  22. 22. Modifications to the existing organizational structure 1. Clarifying and defining jobs 2. Modifying organizational structure fit the communication needs of the organization 3. Decentralizing the organization to reduce the cost of coordination, increase the control ability of subunits, increase motivation, and gain greater flexibility.
  23. 23. PEOPLE CHANGE People change emphasizes increasing organizational effectiveness by changing certain aspects of organization members. The focus of this kind of change is on such factors as employees attitudes and leadership skills.
  24. 24. Examine the Organization Development Organization Development (OD) – is the process of people change. It focuses mainly on changing certain aspects of people, these changes are based on an overview of structure, technology, and all other organizational ingredients.
  25. 25. The Status of the OD If the entire OD area is taken into consideration, changes that emphasize both people and the organization as a whole seem to have inherent strength. However, several commonly voiced weaknesses in OD efforts include the following:
  26. 26. Managers can improve the quality of OD efforts by doing the following:  1. Systematically tailoring OD programs to meet the specific needs of the organization.  2. Continually demonstrating exactly how people should change their behavior.  3. Conscientiously changing organizational reward systems so organization members who change their behavior in ways suggested by the OD program are rewarded.
  27. 27. Individuals affected By the change A fourth major factor to be considered by managers when changing an organization is the people who will be affected by the change.
  28. 28. Resistance to change Resistance to change within an organization is as common as the need for change.
  29. 29. Why people resist change? Resistance to the change itself. Resistance to the change strategy. Resistance to the change agent.
  30. 30. REDUCING RESISTANCE TO CHANGE To ensure the success of needed modifications, managers must be able to reduce the effects of the resistance that typically accompanies proposed change.
  31. 31. Resistance can usually be lowered by following these guidelines:
  32. 32. Avoid surprises  Highest priority and first strategy for change  Improves urgency to change  Reduces uncertainty (fear of unknown)  Problems - time consuming and costly
  33. 33. understanding Provides new knowledge and skills Includes coaching and action learning Helps break old routines and adopt new roles Problems potentially time consuming and costly
  34. 34. change Increases ownership of change Helps saving face and reducing fear of unknown Includes task forces, future search events Problems - time-consuming, potential conflict
  35. 35. change When communication, training, and involvement do not resolve stress Potential benefits More motivation to change Less fear of unknown Fewer direct costs Problems - time-consuming, expensive, doesn’t help everyone. Make tentative change
  36. 36. EVALUATION OF CHANGE  PURPOSE - The purpose of this evaluation is not only to gain insight into how the change itself might be modified to further increase its organizational effectiveness, but also to determine whether the steps taken to make the change should be modified to increase organizational effectiveness the next time they are used.
  37. 37. According to Margulies and Wallace Making this evaluation may be difficult because the data from individual change programs may be unreliable.
  38. 38. CHANGE AND STRESS What is STRESS? It is the bodily strain that an individual experiences as a result of coping with some environmental factor.
  39. 39. According to Hans Selye.. “Stress constitutes the factors affecting wear and tear on the body. In organizations, this wear and tear is caused primarily by the body’s unconscious mobilization of energy when an individual is confronted with organizational or work demands”
  40. 40. THE IMPORTANCE OF STUDYING STRESSStress can have damaging psychological and physiological effects on employees health and on their contribution to organizational effectiveness. It can cause heart disease, and it can prevent employees from concentrating or making decisions. Increased levels of stress have also been associated with adverse effects on family relationships, decreased productivity in the workplace, and
  41. 41.  Stress is a major cause of employee absenteeism and turnover. Certainly, such factors severely limit the potential success of an organization.  A stressed employee can affect the safety of other workers or even the public.  Stress represents a significant cost to organizations.
  42. 42. MANAGING STRESS IN ORGANIZATION This section, is built on the assumption that in order to appropriately manage stress in organizations. managers must understand how stress influences worker performance.  identify where unhealthy stress exists in organization.
  43. 43. Managers must understand the relationship between the amount of stress felt by a worker and the worker’s performance. Once managers understand the impact of stress on performance, they must identify where stress exists within the organization. Because most stress- related organizational problems involve too much stress rather than too little, the remainder of this section focuses on how to relieve undesirably high
  44. 44. A is an environmental demand that causes people to feel stress. Stressors are common in situations where individuals are confronted by circumstances for which their usual behaviors are inappropriate or insufficient and where negative consequences are associated with
  45. 45. Management can also adopt several strategies to help prevent the initial development of unwanted stressors in organizations . Four such strategies follow: 1.) - Organizations commonly evolve into large bureaucracies with formal, inflexible, impersonal climates. This setup leads to considerable job stress. 2. - Recent research has demonstrated that employees who participated in a stress management course were less depressed than employees who did not participate in a stress management course. The stress management course involved a group session in which educational materials about coping strategies and stress prevention presented.
  46. 46. 3.) - Routine jobs that do not allow employees some degree of freedom often result in undesirable employee stress. 4.) - Employees often experience considerable stress when they do not know what their next career step might
  47. 47. is defined as a struggle that results from opposing needs or feelings between two or more people. In case of organizational change, conflict generally results from managers making changes that threaten others or create competing views between others and managers concerning when.
  48. 48. One conflict management strategy a manager can use is to , which means the parties to the conflict settle on a solution that gives both of them part of what they wanted. Some managers adopt the avoiding technique as means to manage conflicts. is conflict management technique whereby managers simply ignore the conflicts.
  49. 49. is a technique for managing conflict in which managers use authority to declare that conflict is ended. The most direct and most difficult way to manage conflict is to work out the difference between mangers and employees. This conflict management strategy is called .
  50. 50. a has the essences of a traditional organization, but without some aspect of tradition al boundaries and structure. Virtual organization are also referred to as . In essence manager go beyond traditional boundaries or organization by using recent developments in information technology.
  51. 51. The most extensive degree; an organization that goes significantly beyond the boundaries and structure of a traditional organization by comprehensively “trying together” a company’s stakeholders– employees, suppliers and customers via an elaborate system of e- mail, World Wide Web, and other internet related vehicles such as videoconferencing. Groups of employees formed by managers that go beyond the boundaries and structure of traditional teams by having members in geographically dispersed locations meeting via real-time messaging on an internet. A training process that goes beyond the boundaries and structure of traditional training , such training can go beyond traditional training limits.
  52. 52. is a work arrangement that extends beyond the structure and boundaries of the traditional office arrangement. Specifics of the arrangements vary from organization to organization but can be conceptualized using the alternative work arrangements continuum.
  53. 53. Have fixed, traditional offices and work schedules but occasionally work at home. Come into the traditional office frequently, but because they are not always physically present, they are not allocated permanent office space. “Tethered” workers have some mobility but are expected to report to the office on a regular basis. A home-based worker has no traditional office. The work space of this type worker could be a kitchen table or a bedroom desk. A worker who is fully mobile works out of a car.
  54. 54. Managers design and implement virtual offices for many different reasons. – is the most commonly cited reason and or are the most commonly cited costs to be reduced.
  55. 55. Managers face many new and different challenges when using the virtual office concept.
  56. 56. Presented by: GROUP V Adrao, Sheena E. Abion, Sherry Kate Adoyo, Herjanh Arago, Lorenzo Arevalo, Joseph