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Explore the meaning of control in organisations, understand different approaches, elements of control systems, and the importance of balancing control and leadership. Learn about behavioural and output control, and the impact of technology on control systems.
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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.
