Chapter 8 - Behavioral aspects of control

Question 1

Types (approaches) of organizational control

Answer 1

Personal centralised control: small comp’s, owner
Bureaucratic control: rules and procedures
Output control: output measure
Clan or Cultural control: strong identification with management goals

Question 2

Trust and Control

Answer 2

With no trust - the following problems might arise:

• motivation
• quality
• little understanding of people

Requirement for trust based control:

• manager is confident of employees
• clear objectives
• employee must be motivated to work hard

Question 3

Employee performance appraisal

Answer 3

benefits for individual

• assessment of competence
• identifies work of merit during period
• basis for remuneration
• basis for future prospects and ambitions
• identifies training needs

Benefits for Org

• provides system to asses competence
• fair rewards
• ident. training needs
• improves communication
• clear targets
• basis for HR planning
• monitors recruitement

Question 4

Process steps for performance appraisal

Answer 4

set targets
monitor
review
action plan

Question 5

Approaches to performance appraisal

Answer 5

ranking system (for tasks, workflows, etc)
unstructured format (any variables)
self rating (individual rates themselves)
360 approach (both ways)

Question 6

Effective performance appraisal

Answer 6

applied fairly
commitment and support from senior managers
carried out with serious intent
related to the main objectives of the organisation
Clearly understood by all parties
Cost effective

=> overcome barriers to effective appraisals by:
A. commitment of everyone involved
B. a follow-up system
C. recorded training agreement

Question 7

Reward systems

Answer 7

Intrinsic: from performance, satisfaction

Extrinsic: pay, working conditions, etc

Question 8

Possible incentives

Answer 8

Performance Related Pay
Piecework (physical reward)
Management by objective
Points system
Commission
Bonus scheme
Profit sharing

Question 9

Target setting

Answer 9

Volume of work
Knowledge of work
Quality of work
Management skills
Personal skills

Question 10

MbO (Drucker’s)

Answer 10

Management by objectives

• agree on own departmental targets with their superiors
• discuss and agree SMART targets
• balance between goals and needs (individual and department)
• apply control system
• ensure continual review

Question 11

Key objectives of MbO by Drucker

to be set for the Org

Answer 11

Profitability
Innovation
Market standing (which products to sell where)
Productivity
Resources (financial and physical)
Managerial performance and development
Performance and attitude
Public responsibility

Question 12

Balanced Scorecard (Kaplan and Norton)

Answer 12

Financial Perspective
out of Vision & Strategy
out of Learning & growth 
Customer Perspective
Internal process

Question 13

Other performance enhancing techniques

Answer 13

mentoring
- faster career progress
- excellent value for money
- company image improves
- improves morale, trust and motivation
usually same function

Coaching

• specific objectives
• 1:1 about everyday work
• gently encouraging people to improve