Management and Organisational Behaviour 7th Edition

Management and Organisational Behaviour 7th Edition PART 8 Improving Organisational Performance

Management and Organisational Behaviour 7th Edition CHAPTER 21 Organisational Control and Power

The meaning of control • An inherent characteristic of the nature of organisations • Process of control is at the centre of the exchange between the benefits that the individual derives from membership of an organisation & the costs of such benefits

The meaning of control Control processes help circumscribe idiosyncratic behaviours & keep them conformant to the rational plan of the organization Tannenbaum

Management control • Primarily a process for motivating & inspiring people to perform organisational activities that will further the organisational goals. • A process for detecting & correcting unintentional performance errors & intentional irregularities, such as theft or misuse of resources. Berry et al. • Monitors the performance of the delegated task so that the expected results are successfully achieved. Payne & Payne

Figure 21.1 The nature of management control

The controversial nature of control • Control often has an emotive connotation & is interpreted in a negative manner to support direction or command by the giving of orders • Control systems regulate behaviour • People can be suspicious of control systems • Control can emphasise punishment • Organisational control exploits employees

Control & the classical approach Control is viewed as an essential feature of formal organisation and a hierarchical structure of authority Taylorism & scientific management can be seen as representing a form of management control over workers & the actual process of work

Control & the traditional view • Assumes the amount of control is fixed • Based on the use of routine procedures & the exercise of rules & regulations in an attempt to create consistency & predictability in behaviour

Control & the human relations approach Control is seen more as a feature of interpersonal influence and takes place within a network of interaction and communications

Control & the contingency approach • Management control is an organisation variable • While the need for control is constant, the extent & manner of control is variable

Messages for today Control must never outweigh leadership • Control is the hallmark of the Old World while leadership is a measure of the New. Obeng • Command and control is out. Consultation & communication is in … Lucas • Many employees have grown up in hierarchical organisations & are accustomed to external authority & the dead weight of organisational history. Cloke & Goldsmith

Elements of an organisational control system There are five elements of a control system – • Planning • Establishing • Monitoring • Comparing • Rectifying

Figure 21.2 Elements of an organisational control system

Planning what is desired Providing the framework against which the process of control takes place Involves – • Clarifying the aims to be achieved • Specifying objectives & targets

Establishing defined standards of performance • Realistic measurements against which success can be measured • Measurements stated where possible in quantitative terms

Monitoring & comparing actual performance • Interpreting & evaluating information in order to detail progress, reveal deviations & identify probable causes • Information feeds back to those concerned to let them know how well they are getting on

Taking corrective action • Considering what can be done to improve performance • Authority takes appropriate action to correct the situation, review the operation of the control system & make any necessary adjustments to objectives & targets

Forms of control • Control systems can focus on the measurement of inputs, outputs, processes or the behaviour of people • Controls can be concerned with general results or with specific actions • Controls can be concerned with an evaluation of overall performance of the organisation as a whole or parts of it • Controls can be concerned with the measurement & performance of day to day operational activities

Behavioural control • Is based on direct supervision • Useful to needs of individual managers in their attempts to control subordinates • Is responsive to the particular needs of the tasks, abilities of the manager & the norms of the organisation

Output control • Based on the measurement of outputs & the results achieved • Serves the needs of the organisation as a whole

Technology & control systems Woodward’s study of 100 manufacturing firms in South Essex • Unit & small batch production firms tended to have unitary & mainly personal control • Process production firms tended to have unitary & mainly impersonal controls • Large batch & mass production firms predominantly had personal controls

Increasing use of IT • With increasing use of IT, control will become more indirect • Information systems will be used to increase control by measuring more things, new things at multiple levels, and at a greater frequency than beforeNordstrom & Ridderstrale

Characteristics of an effective control system • Understood by those involved in its operation • Conforms with the structure of the organisation • Is related to decision centres responsible for performance • Reports deviations from the desired standards of performance as quickly as possible

Characteristics of an effective control system • Draws attention to the critical activities which are important to the success of the organisation • Flexibility • Consistent with the objectivity of the activity to which it relates • Subject to a continual review

Strategies of control in organisations • Personal centralised • Bureaucratic • Output • Cultural Child

Power • A complex & dynamic concept that is difficult to define easily • Broadly – control or influence over the behaviour of other people with or without their consent • More specifically – the medium through which conflicts of interest are ultimately resolved. Influences who gets what, when & how Morgan

Types of power • Coercive • Remunerative • Normative

Involvement The degree of commitment by members to the organisation • Alienative • Calculative • Moral

Perspectives of organisational power • Processual level • Institutional level • Organisational level Fincham

Acquiring power • Providing resources • Coping with uncertainty • Being irreplaceable • Affecting decision processes • By consensus Pfeffer

Pluralistic approaches to power • Reward power • Coercive power • Legitimate power • Referent power • Expert power French & Raven

Three main forms of control • Direct control by orders, direct supervision & rules & regulations • Control through standardisation & specialisation • Control through influencing the way that people think about what they should do Stewart

Manager – subordinate relationship • Authority • Responsibility • Accountability

Figure 21.5 The basis of delegation

Reasons to delegate • Makes best use of manager’s time • Means of training & development • Encourages development of specialist knowledge & skills • Geographical location • Sound economics • Improves strength of the workforce

Figure 21.6 Main stages in the process of delegation

Figure 21.8 Balance between delegation & control

Empowerment Allowing employees greater freedom, autonomy, & self control over their work, & responsibility for decision making Empowerment can be succinctly defined as the authority of subordinates to decide & act Mills & Friesen

Empowering managerial initiatives • Empowerment through participation • Empowerment through involvement • Empowerment through commitment • Empowerment through de-layering Lashley

Resistance to control systemsMost likely to be present when: • Control system measures performance in a new area • Control system replaces a system that people have a high investment in maintaining • Standards are set without participation • Results from the control system are not fedback to the people whose performance is measured

Resistance to control systemsMost likely to be present when: • Results from the control are fed to higher levels in the organisation • People affected by the system are relatively satisfied with things as they are • Those affected by the system are low in self- esteem & authoritarianism Lawler

Overcoming resistance to management control • Consultation & participation • Motivation • Organisation structure • Groups & informal organisation • Leadership style & systems of management

Table 21.2 MBO as a control system Source: Adapted and reproduced with permission from Humble, J.W., Management by Objectives, Management Publications Limited for the British Institute of Management (1972) p.46.

Management and Organisational Behaviour 7th Edition