13.5 The nature of management control Flashcards
Which key word in stratgy is derived from the Latin word “audire”, meaning to hear, listen or understand?
Audit
What is the difference between a “single loop” and “double loop”when discussing system control?
A double loop system has a sense-check built into to it to ensure that strategy is on the right track.
e.g. a single loop system might have a target production, and when this is met, production stops. In a double-loop system, once that target is met, the management will consider whether to stop production or to continue to reach a new goal.
In “Creative Problem Solving”, Robert Flood (1991) suggests the use of 5 metaphors to understand types of control and behaviour within organisational systems.
The MACHINE metaphor describes a single-loop, closed system, in which “a button is pushed and the machine operates in a continuous, repetitive manner”.
Give some examples of organisations that fit this metaphor.
The armed forces
Fast food chains
In “Creative Problem Solving”, Robert Flood (1991) suggests the use of 5 metaphors to understand types of control and behaviour within organisational systems.
The ORGANIC metaphor describes a double-loop, open system, in which “the inputs can be determined, but the outputs will evolve”.
Give some examples of organisations that fit this metaphor.
Most industrial businesses.
In “Creative Problem Solving”, Robert Flood (1991) suggests the use of 5 metaphors to understand types of control and behaviour within organisational systems.
The Brain metaphor describes a “particular category of open system with a keen focus on viability”.
Give some examples of organisations that fit this metaphor.
Innovative industrial firms
Consultancy firms
In “Creative Problem Solving”, Robert Flood (1991) suggests the use of 5 metaphors to understand types of control and behaviour within organisational systems.
The CULTURE metaphor describes the “familiar, unspoken ways of thinking in all organisations” - firms in identical markets will work very differently depending on culture.
Give some examples of organisations that fit this metaphor.
High-tech firms
Machine-like military structures
In “Creative Problem Solving”, Robert Flood (1991) suggests the use of 5 metaphors to understand types of control and behaviour within organisational systems.
The POLITICAL metaphor describes the “pursuit of power by individuals and the impact this has on organisational relationships.”
Give some examples of organisations that fit this metaphor.
All organisations show examples of political activity!
An organisation requires a challenging balance of differing leadership skills:
- experienced p_____ - who understand what they are dealing with
- l______ thinkers - people who have the ability to think beyond the obvious
- intelligent l______ - people who will audit the views of others
- independent leaders with specific relevant knowledge (usually NEDs)
- leaders prepared to lead the process (Chairs)
players
lateral
listeners
Simons (1994) argues that a number of generic concepts can be applied to understand the levels of control within an organisation:
- B____ - the core values of the organisation
- B_______ - the pre-defined limits and parameters
- P_____ interaction - how the organisation actually works
- F________ monitoring - the need to understand what is happening when a system alarm is activated
Beliefs
Boundaries
People
Feedback
What is the benefit of an “enterprise resource planning (ERP)” system over a more traditional system for organisational planning?
Historic systems tend to deliver data at the end of an operational cycle, meaning that errors etc are only discovered once its too late. An ERP system allows real time control so errors can be corrected as they arise.
ERP systems can help employees to work more safely and efficiently (e.g. wristbands on Amazon workers calculate optimal routes for shifting packages). However, what are some downsides to these systems?
Excessive control can lead to abuse of workers. E.g. encouraging workers to overwork.
What 5 metaphors did Flood (1991) provide to help understand the difeferent types of control systems in organisations?
MACHINE ORGANIC BRAIN CULTURE POLITICAL
