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Organizational Control. What is control? The process of taking the necessary preventive and corrective actions to ensure that the organization’s mission and objectives are accomplish as effectively and efficiently as possible (Kreitner, 2000).
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Organizational Control What is control? • The process of taking the necessary preventive and corrective actions to ensure that the organization’s mission and objectives are accomplish as effectively and efficiently as possible (Kreitner, 2000). • A systematic process through which managers regulate organizational activities to make them consistent with the expectations established in plans and to help the achieve all predetermined standards of performance(Lewis, 2000).
Organizational Control What is control? • The process of monitoring activities to ensure that goals are being accomplished as planned and correcting any significant deviations. (Robbins,2000)
Organizational Control • Controlling • It helps maintain compliance with essential organizational rules and policies. What do managers Control? Quantity Quality Time use Cost
The Control Process • Establish objectives and standards. • Measure actual performance. • Compare results with objectives and standards. • Take necessary action.
Establish Objectives and Standards • The control process begins with planning and the establishment of performance objectives. • Performance objectives are defined and the standards for measuring them are set.
Establish Objectives and Standards • There are three types of standards: • Output Standards- measures performance results in terms of quantity, quality, cost, or time. • Input Standards- measures work efforts that go into a performance task. • Standards of conduct – moral and ethical criteria that shape the behavioural climate at the work place
Examples of Statandards • Profitability standards • Market position standards • Productivity standards • Product leadership standards • Personnel development standards • Employee attitude standards • Social responsibility standards
When measuring standards … …managers must ask questions. For example … • Is the firm efficiently converting inputs into outputs? • Are units of inputs and outputs measured accurately? • Is product quality improving? • Is the firm’s quality competitive with other firms? • Are employees responsive to customers? • Are customers satisfied with the services offered? • Are our managers innovative in outlook? • Does the control system encourage risk-taking?
Measuring Actual Performance • Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired. • Without measurement, effective control is not possible.
Comparing Performance to Standards The comparison of actual performance with desired performance establishes the need for action.
Taking Corrective Action • Managers can choose among three courses of action • Do nothing • Correct actual performance • Modify standard
Taking Corrective Action Checklist may suggest some general areas for corrective action • Revise the standard • Revise the objective • Revise the strategies
Types of Control • Feed-forward Sometimes called preliminary control, pre-control or preventive control. They are accomplished before a work activity begins. They make sure that proper directions are set and that the right resources are available to accomplish them.
Types of Control • Concurrent Focus on what happens during the work process. Sometimes called steering controls, they monitor ongoing operations and activities to make sure that things are being done correctly.
Types of Control • Feedback Sometimes called post-action controls, they take place after an action is completed. They focus on end results, as opposed to inputs and activities.
Methods of Control • Personal Control • Involves direct personal contact and supervision of employees Disadvantages • Subjective • Lacks objectivity • De-motivate employees • Costly • Breaks down as organizations expand
Methods of Control • Bureaucratic Control Aim at ensuring that employees exhibit appropriate behaviours that meet performance standards Relies on • Rules • Policies • Supervision • Reward systems
Methods of Control • Control through incentives Incentives are a means of encouraging and rewarding employee behaviour. They are tied to employee behaviour.
Methods of Control • Clan Control This represents cultural values, beliefs, corporate culture, shared norms and informal relationships to regulate employee behaviours and facilitate reaching organizational goals.
Requirements of an Effective Control System • Targets must be realistic • Performance standards • Linking activity to objectives • Employees must understand • Measurement • System must be acceptable to the entire workforce • Feedback and reporting
Information and Control Sources of information • Observation • Oral reports • Written reports • Statistical data
