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Chapter 5 Control

Chapter 5 Control. Scope of Chapter 5. Control: the concept Foundations for control Strategic and operational control Key variables of control Strategies of control Conventional and newer approaches to control Control strategies and relevant contingencies. Control: The Concept.

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Chapter 5 Control

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  1. Chapter 5Control

  2. Scope of Chapter 5 • Control: the concept • Foundations for control • Strategic and operational control • Key variables of control • Strategies of control • Conventional and newer approaches to control • Control strategies and relevant contingencies

  3. Control: The Concept Control is the process whereby management or other groups are able to maintain or alter the conduct of organized activities so that the results accord with the goals and expectations held by those groups

  4. Foundations for Control • Power • Authority • Expertise • Rewards

  5. Strategic and Operational Control Strategic control • hierarchical: board & CEO decisions • non-hierarchical/participative: codetermination Operational control • hierarchical: “command-and-control” system • non-hierarchical/participative: autonomous teams and self-control (e.g. quality)

  6. Key Variables of Control Extent • the degree to which control is exercised over a particular activity Focus • those activities on which control is particularly focused Mechanisms • negative and positive • formal and informal • content, context and process-oriented • feedback or feedforward

  7. Strategies of Control • personal centralized • bureaucratic • output • electronic surveillance • HRM control • cultural

  8. Conventional and Newer Philosophies of Control OldNew strategy: top-down customer/market-driven standardization customization according to plan continuous innovation keeping things on track adaptation no surprises employee initiative

  9. Conventional and Newer Approaches to Control ConventionalNewer Personal supervision Output control Centralization Devolution Bureaucracy Cultural control Electronic surveillance HRM control

  10. Degree of Control No point in trying to control more than is necessary, because of downsides: • administrative cost • demotivation • inflexibility

  11. Contingencies Relevant to the Choice between Strategies of Control • Competitive strategy: cost leadership or differentiation? • Extent of diversification: high or low? • Environment: how variable? • Task outcomes: measurable or not? • Task characteristics: good or limited knowledge of transformation processes? • Importance of achieving innovation: high or low? • Employee expertise and skills: high or low? • Position of employees in labor market: strong or weak? • Size of organization: large or small?

  12. Control and Hierarchy[Chapters 4 and 5]

  13. Control is Part and Parcel of Hierarchy • the justification for hierarchy lies in control (authority and accountability, according to level of responsibility) • methods of control have a bearing on the spans of control that can be sustained, and hence on number of levels in a hierarchy

  14. Factors Bearing on Appropriate Spans of Control • time a manager has to devote to supervision as opposed to non-managerial duties • interaction between persons being supervised • dissimilarity of activities being supervised • incidence of new problems arising • physical dispersion of activities being supervised • control strategies used • competence and training of managers and subordinates

  15. New Forms of Organization have a Direct Bearing on Spans of Control Moves towards new organization, including ‘high-performance work systems’ enable: • widening of spans of control • reductions in numbers • hence delayering of hierarchies

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