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Six Sources of Tensions in Control Systems

The document summarizes six sources of tensions in control systems: 1) Tensions arise from the need to make strategic choices and from goal divergence among stakeholders. 2) Profit, growth, and controls can sometimes be at odds and must be carefully balanced. Controls should be established before pushing for profits. 3) Evaluating long-term performance is difficult and uncertain compared to measuring short-term goals. 4) Working together, different stakeholders inevitably experience conflicts in interests and risk perceptions that control systems must consider. 5) Employee motivation is complex since employees differ and are motivated by various factors, requiring tailored motivation approaches. 6) Inter-departmental conflicts and politics within control systems arise from varied skill needs

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2K views11 pages

Six Sources of Tensions in Control Systems

The document summarizes six sources of tensions in control systems: 1) Tensions arise from the need to make strategic choices and from goal divergence among stakeholders. 2) Profit, growth, and controls can sometimes be at odds and must be carefully balanced. Controls should be established before pushing for profits. 3) Evaluating long-term performance is difficult and uncertain compared to measuring short-term goals. 4) Working together, different stakeholders inevitably experience conflicts in interests and risk perceptions that control systems must consider. 5) Employee motivation is complex since employees differ and are motivated by various factors, requiring tailored motivation approaches. 6) Inter-departmental conflicts and politics within control systems arise from varied skill needs

Uploaded by

Mahendar Sd
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Six Sources of Tensions in Control Systems

BY MAHENDAR.S.D M.B.A-II

CATEGORIES
Tensions arising due to the need to make strategic choices. Tensions due to goal divergence among stakeholders and the efforts needed to imaginatively establish goal congruence. Tensions due to limitations managerial of cognitive powers

Profit, Growth and Control


In past, companies have focused on growth with little talk about profit. Then there became a huge awakening that resulted in a shift to being profitable. Profit, growth and controls are sometimes poised in opposition to each other and the three have to be balanced carefully. First build a control infrastructure then management can push people hard on profits because the controls are in place

Conflicts Between Long Term and Short Term


Groups of people who are involved in the phase of product conception, product launch, and production would be different. The methods of measurement of performance regarding short term goals are simpler. But evaluation and monitoring of present performance from the point of long term benefits, is an extremely uncertain and difficult task

Conflict Among Stakeholders


Several group of stakeholders work together in order to the success of the organization. working together also inevitably results in conflict on interests between them and a clash of their perceptions during acceptable risk taking. Control systems will have to take all this into consideration

Complexities of Employee motivation


All organizations need highly motivated employees so that they work at their maximum potential. Employee motivation is complex because employees differ in their own personalities and they are motivated by different factors. The managers must be aware that employee motivation theories are only guides and they must use their own information to motivate employees and achieve goals.

Inter-Departmental Conflicts and Politics of Control Systems


Different organizations need varied types of skills and knowledge to work in departments, teams, or task groups. Most companies required geographical spread. This inevitably results in conflicts between different groups. This is a major control problem in most large organizations and gives rise to politics of control systems

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