This document discusses organizational control and culture. It covers three main types of control systems - input, output, and behavior control. It also discusses the goal-setting process and how goals are established at different organizational levels. Additionally, it outlines different control methods like financial measures, operating budgets, direct supervision, management by objectives, rules and standard operating procedures, and organizational culture/clan control. It explains how culture is created through a founder's values, socialization of new employees, ceremonies and stories within an organization.

1. Organizational Control and Culture 9

4. Three Types of Control Inputs Outputs Conversion Process Feedforward Control (anticipate problems) Concurrent Control (manage problems as they occur) Feedback Control (manage problems after they occur) Figure 9.1

6. Control Process Steps Establish standards of performance, goals, or targets against which performance is evaluated. Measure actual performance Compare actual performance against chosen standards Evaluate results and take corrective action when the standard is not being achieved. 1. 2. 3. 4. Figure 9.2

9. The Goal-Setting Process Corporate level managers set goals for individual decisions to allow organization to achieve corporate goals. Divisional managers set goals for each function to allow the division to achieve its goals. Functional managers set goals for each worker to allow the function to achieve its goals. Figure 9.4

10. 3 Organizational Control Systems Figure 9.3 Output Control Behavior Control Culture or Clan Control Financial Measures or performance Goals Operating budgets Direct supervision Management by Objective (MBO) Rules & Standard Operating Procedures Values Norms Socialization

19. Creating Strong Organizational Culture Values of Founder Socialization Process Ceremonies & Rites Stories & Language Organizational Culture Figure 9.5