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This document discusses key concepts related to organizational control including: 1) Control involves monitoring, comparing, and correcting performance against standards using market, bureaucratic, or clan approaches. 2) The control process is three steps - measuring actual performance, comparing to standards, and taking corrective action. 3) Organizational performance measures include productivity, effectiveness, and balanced scorecard approaches using financial, customer, process, and learning metrics. 4) Contemporary control issues involve adapting for culture, addressing workplace concerns like privacy and violence, and managing customer interactions.

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47 views23 pages

Group 2

This document discusses key concepts related to organizational control including: 1) Control involves monitoring, comparing, and correcting performance against standards using market, bureaucratic, or clan approaches. 2) The control process is three steps - measuring actual performance, comparing to standards, and taking corrective action. 3) Organizational performance measures include productivity, effectiveness, and balanced scorecard approaches using financial, customer, process, and learning metrics. 4) Contemporary control issues involve adapting for culture, addressing workplace concerns like privacy and violence, and managing customer interactions.

Uploaded by

bad genius
Copyright
© © All Rights Reserved
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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Foundations of

Control
Learning Outcomes:
•Define control
•Describe three approaches to control
•Explain why control is important
•Define the control process
•Analyze the three types of control
•Define the Controlling from organisational
performance
•Identify the Organisational performance measures
•Analyze the three control concepts of Tools for
controlling organisational performances

•Define the balanced scorecard approach

•Describe the 2 ways view information controls

•Identify the Management Information System

•Analyze the Benchmarking of best practices

•Define the Contemporary issues in control


What is control?

Controlling = the process of monitoring, comparing and


correcting work 
performance.
3 approaches to designing
control system:

•Market control = an approach to control that emphasises the use


of external market mechanisms to establish the control standards.

>Usually used by organisation with highly specified and distinct


product with high marketplace competition.

> Market mechanisms include: price competition, relative market


share.
Bureaucratic Control= an approach to control that
emphasises organisational authority and relies on
administrative rules, regulations, procedures and policies.

> Standardised activities, well defined job descriptions and


budgets.

>Based on strict hierarchical structure


Clan Control=an approach to control in which employee behaviour is
regulated by organisational culture.

>Used by organisations in which teams are common and technology is


changing rapidly.

>Depends on the individual and the group to identify appropriate and


expected behaviours and performance measures.
Why is control important?
There needs to be assurance that activities are going as planned and
that goals are being attained.

It is the final in the management functions.

Without control you would have no idea whether the organisation as


on tract to complete goals and what future actions should be.

Protects the organisation and its assets from threats such as natural
disasters, financial scandals, workplace violence, supply-chain
disruptions, security breaches and even terrosist attacks.

> Plans in place to protect employees, infrastructure, facilities


and data.
Control Process

•Controlling is a three-step process


Assumes that performance standards already exis
specific goals are created in the planning process
1. Measuring actual performance
a. Personal observations
i. Get first-hand knowledge, information isn’t
filtered, intensive coverage of work activities.
ii. Subject to personal bias, time consuming,
obtrusive
b. Statistical Reports
iii. Easy to visualise, effective for showing
relationships
iv. Provide limited information, ignored subjective
factors
c. Oral Reports
i. Fast way to get information, allow for
verbal and non verbal feedback.
ii. Information is filtered, information can’t be
documented
d. Written Reports
iii. Comprehensive, formal, easy to file and
retrieve
iv. Take more time to prepare
2. Comparing
•Determine the acceptable range of variation
>Range of variation= the acceptable parameters of
variance between actual performance and the
standard.
3. Taking managerial action
•Correct actual performance
•Changing:
-Structure
-Strategy
-Compensation programs
-Redesigning jobs
-Firing employees
•Needs o make decision between
-Immediate corrective action= corrective action that corrects
problems at once to get performance back on track
-Basic corrective action= corrective action that looks at how and
why performance deviated and then proceeds to correct the source
of deviation
is possible the deviation was a result of an unrealistic goa
-Difficult to revise a standard downwards
employees not meeting standards to blame the standards i
Controlling from
organisational performance

Organisational performance
Performance=is the process or action of performing a
function or task.
Organisational performance = involves analyzing a
company’s performance against its objectives and goals.
rganizational Performance Measur

Organisational productivity= is the capacity of


an organisation, institution, or business to produce
desired results with a minimum expenditure of
energy, time, money, personnel, materiel, etc.
Organisational effectiveness =is the
concept of how effective an organization is
in achieving the outcomes the organization
intends to produce.
Tools for controlling organisational
performances
•Control concepts:

>Feedforward control= a type of control that takes place before a


work activity is done
-anticipates problems

-Allow managers to prevent problems

>Concurrent control=a type of control that takes place whole a


work activity is in progress

-corrects problem as they happen

-correct before they become too costly


>Feedback control

•corrects problem after they occur

•Drawback=leads to waste or damage

•Provides managers with meaningful information on


how effective their planning efforts were
Balanced Scorecard approach

at looks at four areas- financial, customers, internal process and people/i


Information Control

•Management Information System (MIS)


—collects data from many different sources
and then processes and organizes that data to
help businesses make decisions.
Benchmarking of Best
Practices

ark= serves as a standard by which others may be measured or


ing one’s business processes and performance metrics to indus
ovements from learning mean doing things better,faster, and ch
Contemporary issues in
control
•adjusting controls for cross-culture differences
•workplace concerns
>workplace privacy
>employee theft
•=any unauthorised taking of company property by employees for their
personal use.
>Workplace violence
•Controlling customer interactions
>Service profit chain=the service sequence from employees to
customers to profits

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