2 learning Objectives define organizational control and also explain exactly how it increases organizational effectiveness. Describe the 4 steps in the control process and the method it operates end time. Recognize the key output controls, and discuss their advantages and defect as way of coordinating and also motivating employees. Determine the main habits controls, and also discuss their benefits and disadvantages as means of coordinating and motivating employees. Talk about the relationship in between organizational control and change, and explain why managing change is a critical management task

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

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4 Control Systems manage SystemsFormal, target-setting, monitoring, evaluation and feedback systems that administer managers through information around whether the organization’s strategy and structure are working efficiently and also effectively. A great control system should: be functional so managers can respond together needed. Administer accurate information around the organization. Carry out information in a stylish manner. 4

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5 Three types of control Figure 11.1 feeding forward ControlsUsed come anticipate problems prior to they arise so that problems do not take place later throughout the conversion procedure Giving stringent product specifications to suppliers in breakthrough IT can be used to save in call with suppliers and to monitor their progression Concurrent Controls give managers immediate feedback ~ above how effectively inputs room being transformed into outputs allows managers come correct troubles as castle arise Feedback Controls used to administer information in ~ the calculation stage about customers’ reaction to goods and services so the corrective action can it is in taken if important Figure 11.1 5

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6 Control Systems and also IT Feedforward controlControl that enables managers to anticipate problems before they arise. Providing stringent product specifications to companies in breakthrough

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7 Example – university of Alabama Game-dayThe university of Alabama offers information because that fans come be ready for football video game day parking and events This is an instance of feedforward regulate 7

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8 Control Systems and IT Concurrent controlControl that gives managers instant feedback on how effectively inputs room being transformed right into outputs therefore managers can correct problems as castle arise.

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9 Control Systems and IT Feedback controlControl that gives managers information about customers’ reaction to goods and also services for this reason corrective action can be taken if necessary.

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10 Control process Steps number 11.2

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11 The Control procedure Establish standards of performance, goals, or targets against which performance is to be evaluated. Supervisors at each business level need to set their own standards. 11

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12 The Control procedure Measure actual performanceManagers have the right to measure outputs result from worker behavior or they have the right to measure the behavior themselves. The an ext non-routine the task, the harder the is come measure behavior or outputs 12

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13 The Control procedure Compare yes, really performance versus chosen criter of performance supervisors evaluate whether – and also to what level – power deviates indigenous the criter of performance chosen in action 1 13

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14 The Control process Evaluate an outcome and start corrective activity if the standard is not being completed If supervisors decide that the level of performance is unacceptable, castle must shot to adjust the method work activities are carry out to deal with the problem

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15 Three Organizational control SystemsFigure 11.3

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16 Financial procedures of PerformanceProfit Ratios – measure up how properly managers are using the organization’s resources to generate revenues Return on investment (ROI) – organization’s network income prior to taxes split by its full assets most typically used jae won performance measure 16

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17 Financial steps of PerformanceOperating margin calculation by separating a providers operating profit by sales revenue offers managers through information around how properly an company is utilizing its sources

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18 Financial procedures of PerformanceLiquidity ratios measure just how well supervisors have safeguarded organizational sources to be able to meet short-term responsibilities Leverage ratios measure up the level to which supervisors use debt or same to finance continuous operations 18

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19 Financial measures of PerformanceActivity ratios present how well managers are developing value from business assets Inventory turnover Days sales exceptional 19

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20 Organization-Wide score SettingOrganizational goals Each department within the firm is given particular goals that must be met in order come attain in its entirety organizational goals. Goals need to be collection appropriately for this reason that managers are encouraged to attain them number 11.4 20

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21 Output control Operating BudgetsBlueprint that states just how managers intended to use business resources to achieve organizational goals efficiently. Each department is evaluated on its very own budgets for cost, revenue or profit. Supervisors are evaluate by how well they satisfy goals for regulating costs, generating revenues, or maximizing revenues while continuing to be within their budgets. 21

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22 Effective calculation ControlObjective jae won measures daunting goals and also performance standards appropriate operating budgets

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23 Problems through Output ControlManagers must produce output standards that motivate at all levels must not reason managers come behave in inappropriate ways to achieve organizational purposes 23

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24 Behavior control Direct supervisionManagers who actively monitor and also observe the actions of their subordinates Teach subordinates appropriate behaviors interference to take it corrective activity Most immediate and also potent type of behavioral control deserve to be an effective way of inspiring employees 24

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25 Problems with straight SupervisionVery expensive since a manager deserve to personally control only a fairly small variety of subordinates effectively Can demotivate subordinates if castle feel the they room under together close scrutiny that they room not totally free to do their very own decisions

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26 Management through ObjectivesManagement by missions (MBO) formal device of analyzing subordinates because that their ability to achieve certain organizational objectives or power standards and to satisfy operating budgets 26

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27 Management through ObjectivesSpecific goals and also objectives are established at every level that the organization Managers and also their subordinates together recognize the subordinates’ goals Managers and also their subordinates periodically testimonial the subordinates’ progress toward meeting objectives

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

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29 Problems with bureaucratic ControlRules easier to make than discarding them, top to bureaucratic “red tape” and also slowing organizational reaction times to problems. Human being might become so supplied to immediately following rules that they stop thinking for themselves 29

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

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31 Organizational ChangeMovement the an company away indigenous its existing state and toward some wanted future state to rise its efficiency and effectiveness

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32 Organizational ChangeFigure 11.5

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33 Lewin’s Force-Field theory of ChangeThere space a wide variety of forces developing from the method an organization operates, indigenous its structure, culture, and control systems that make institutions resistant to adjust To gain an company to change, managers must discover a way to increase the forces for change, minimize resistance to change, or carry out both simultaneously figure 11.6 33

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34 Evolutionary and Revolutionary Changegradual, incremental, and narrowly focused continuous attempt to improve, adapt, and adjust strategy and structure incrementally to accommodate transforms in the atmosphere

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35 Evolutionary and also Revolutionary ChangeRapid, dramatic, and broadly focused entails a bold attempt to quickly uncover ways to be efficient Likely to result in a radical shift in ways of doing things, brand-new goals, and also a brand-new structure because that the company

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36 Steps in the Organizational change ProcessFigure 11.7

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37 Implementing the ChangeTop Down adjust A fast, revolutionary method to readjust in which optimal managers identify what demands to be adjusted and then move conveniently to carry out the changes throughout the organization.

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38 Implementing the ChangeBottom-up change A gradual or evolutionary technique to adjust in which managers at all levels work together to construct a detailed arrangement for change.

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39 Evaluating the change BenchmarkingThe procedure of to compare one company’s power on particular dimensions through the power of other, high-performing organizations.

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40 Video Case: making use of Facebook at WorkWhy can output manage be preferable to habits control because that a manager who employees usage Facebook at work? execute you think labor should have policies to ban or limit making use of Facebook and similar Web sites purely because that entertainment in ~ work? using Facebook at occupational Teaching Objective: To discover workplace use of society networking sites in regards to organizational regulate Summary: Facebook and also other social networking sites are hugely popular not just with teens and those in your 20s but also by larger people. Your popularity carries end to the workplace, distracts employees, reasons lost productivity, and also worse. While countless employers pardon Facebook usage in the office as lengthy as employees complete their work, others have actually banned its use. Questions: Why could output control be preferable to habits control because that a manager who employees usage Facebook in ~ work? Output control evaluates performance fairly than behavior and measures what is yes, really important. A manager offers clear purposes or targets the will best measure each employee’s efficiency, quality, innovation, and responsiveness come customers. If employees space achieving performance goals, the manager might wish to allow leeway for employees occasionally to usage Facebook and comparable sites. Habits control through straight or strict supervision that all activities can demotivate subordinates. Banning facebook or other web sites might make employee feel that they room under such close scrutiny the they are not totally free to do their own decisions or trusted enough to get their job-related done. How can clan control affect employee usage of Facebook and also other society networking sites? Clan manage takes advantage of the power of organizational society to store employees focused on what is best for the organization and also how come use resources to develop value. When employees are motivated to accomplish goals, they would be more likely come limit their purely an individual distractions choose Facebook and other web sites. A strong, positive culture would additionally make it much less likely that employees would certainly post an unfavorable messages about their employee on their on facebook pages. Execute you think job should have policies to half or limit using Facebook and similar Web sites purely because that entertainment at work? There might supporters because that both sides of the issue. Some students will most likely say the employees have to be responsible for their time as lengthy as they finish their work. Part students are likely to suggest out the banning Facebook would not remove time wasting and also would reason resentment.


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A ban would certainly be impossible to bring out unless the this firm server might prevent accessibility to the website or can keep track of how much time separation, personal, instance employees usage it. 40

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