CHapter 5 alternatives To Incentive Controls Flashcards

1
Q

Types of Controls

A

Results Control
Action Controls
Personnel Controls
Cultural Controls

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2
Q

Types of Action controls

A
  • Behavioral constraints
  • Preaction reviews
  • Action accountability
  • Redundancy
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3
Q

Behavioral constraints (action control)

A

Negative form of action control.
- Make it impossible for employees to do things that should be done.
- Physical constraints. Ex.:
- Administrative constraints: limits on an employee’s abilities to perform all or a portion of specific acts. Ex.:
- Separation of duties: divide up tasks so that it is impossible for one person to complete the task alone Ex.:

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4
Q

Preaction reviews

A

Action plans of the employees are controlled.
- Actions can be approved or disapproved by reviewers. - Ex.: Budgeting preview

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5
Q

Action accountability

A

Accountable actions can be communicated administratively or socially

  • Administratively: work rules, procedures, company codes of conduct
  • Rules in writing, training to reinforce rules (e.g., McDonalds, retailers)
  • Socially: actions that involve professional judgment.
  • Post audits in capital budgeting, peer reviews of auditors, lawyers etc.
    Prof. Dr. Markus C. Arnold ・ Performance Measurement, Evaluation an
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6
Q

Redundancy (action control)

A

Usually expensive

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7
Q

Basic purpose of personnel controls

A
  • Help ensure that each employee understands what the organization wants.
  • Help ensure that employees are able to do a good job.
  • Increase the likelihood that employees will engage in self-monitoring (self-control, intrinsic motivation, ethics, etc.)
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8
Q

Methods of personnel controls

A

Selection and placement of employees
Training
Job design and provision of necessary resources

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9
Q

Ways of cultural controls

A

-Written or unwritten rules
Norm and values
shared values, ideologies, attitudes
Codes of conduct
Group rewards

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10
Q

Advantages of personnel and cultural controls

A

usable in almost every setting, produce fewer harmful
side effects, can be economically beneficial.

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11
Q

Rotten Egg

A

Individual employees can infect others if they don’t follow the culture

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