Control Flashcards
Control meaning in the organizational context?
The process of establishing performance standards, monitoring performance, and taking corrective measures when necessary to ensure the achievement of the organization.
Types of control
- Preventive control
- Concurrent control
- Post control
- Preventive control (Inputs)
Mechanisms intended to reduce errors, proactively, thereby minimizing the need to take corrective measures.
Concurrent control (Transformation)
known as steering control which indicates control measures that monitor activities while they are taking place.
Post control( Outputs)
Mechanisms intended to reduce or eliminate unwanted behavior or results to meet the organization’s regulations and standards.
Sources of control
1.Stakeholder control
2. Organizational control
3. Group control
4. Individual self control
Stakeholder control
Pressure from outside sources on the organization to change its behaviors
Organizational control
Formal procedures and regulations for preventing or correcting deviations for achieving desired goals.
Group control
Norms and values that individuals share and maintain through rewards and punishment.
Individual self-control
Guiding mechanisms that operate both consciously and unconsciously within each person.
The control process
- Define subsystem and key characteristics
- Set performance standard
- Collect information and measure the actual performance
- Compare performance against set performance
- Evaluate and correct problems if required
- Define subsystem and identify key characteristics.
A formal subsystem can be created and monitored for an organization, employee, department or the entire organization.
- Set performance standards
Standards are criteria for measuring quantitative (measurable ) and qualitative (subject ) characteristics and should be set foe each characteristics used
- Collect information and measure the actual performance
Information related to each standard can be collected manually or automatically. Measurement should be reliable and have the results for the same circumstances over the long term.
Top Managers can create a special department or rely on regular departments to collect information by monitoring certain activities
4.Compare the performance against the set performance standard
Comparisons are better to determine whether what is happening is what should be happening
Evaluate and correct problems if required
Diagnosis includes assessing the types, numbers, and causes of deviations from set standards. Actions can be taken to eliminate these deviations and correct problems.
Creating effective controls
One way to create and measure the effectiveness of organizational control is to compare their cost and benefits
3 questions to address the cost-benefit analysis
- For what behavior and results should organizational controls be developed?
- What are the costs and benefits of the organizational control required to achieve desired results or behavior
- What are the costs and benefits of utilizing alternative organizational controls to obtain the desired behavior and results
Criteria for effective control
Objective
Timely
Acceptable
Objective
Economical
Performance management
The performance of the organization is a measure of how effectively and efficiently managers use available resources to satisfy the multiple needs of existing customers and thereby achieve organizational goals and objective..
effectiveness
How well does the organization pursue its goals and to what extent it achieve these set goals
Efficiency
How well the resources are used in process of achieving these goals
How can the organization be efficient
By minimizing inputs and maximizing outputs/ Maintaining inputs and increasing outputs
Outcomes of applying controls to measure efficiency and effectiveness
- High efficiency and high effectiveness
- Low efficiency and low effectiveness
- High efficiency, Low effectiveness
- Low efficiency, high effectiveness
High efficiency and high effectiveness
The manager selected appropriate goals to achieve and optimally applied the resources to achieve the chosen goals
Low efficiency and low effectiveness
The manager did not select appropriate goals to pursue and did not optimally apply the resources to achieve the chosen goals
High efficiency, Low effectively
The manager did not select the appropriate goals to pursue but optimally applied resources to achieve the chosen goals
Low efficiency, high effectiveness
The managers selected the appropriate goals to pursue but did not optimally apply the resources to achieve the goals
Performance management allows employees and managers to?
- Develop performance standards
- Conduct observations
- Provide feedback
- Conduct appraisals
