PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition.. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition.. PowerPoint Slides t/a Management: A Paci
Trang 1© 2003 McGraw-Hill Australia Pty Ltd PowerPoint
Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
Meacheam & George Sansbury
1
CHAPTER 16
CONTROLLING THE
ORGANISATION
Trang 2© 2003 McGraw-Hill Australia Pty Ltd PowerPoint
Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
Meacheam & George Sansbury
2
Lecture outline
• Control as a management function
• The control process
• Types of control
• Managerial approaches to control
• Assessing control systems
Trang 3© 2003 McGraw-Hill Australia Pty Ltd PowerPoint
Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
Meacheam & George Sansbury
3
Control as a management
function
Controlling:
Process of regulating organisational activities so that actual performance conforms to expected
organisational standards and goals.
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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4
Control as a management
function
Role of controls:
• Coping with uncertainty
• Detecting irregularities
• Identifying opportunities
• Handling complex situations
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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5
Control as a management
function
Levels of control
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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The control process
Steps in the control process:
Determine areas to control
Determine areas to control
Establish standards
Establish standards
Measure performance Compare performance
Recognise positive performance
Recognise positive performance
Control
process
steps
Control
process
steps
Take corrective action Adjust standards
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
Meacheam & George Sansbury
7
The control process
Deciding what to control:
High dependence on the resource
Chance that expected resource flow will
be unacceptable
Chance that expected resource flow will
be unacceptable
Control-process feasibility Cost acceptability
Determining
strategic
control
points
Determining
strategic
control
points
Alternatives to control
•Change dependence relationships
•Change nature of dependence relationships
Alternatives to control
•Change dependence relationships
•Change nature of dependence relationships
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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8
Types of control
Types of control:
• Major types by timing
• Multiple controls
• Cybernetic & non-cybernetic controls
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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Types of control
Types by timing:
Input Transformation
processes
Transformation
Feed-forward
control.
Anticipating
problems
Feed-forward
control.
Anticipating
problems
Concurrent control.
Attending to problems as they occur
Concurrent control.
Attending to problems as they occur
Feedback control.
Correcting problems after product/ service
is produced
Feedback control.
Correcting problems after product/ service
is produced
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Enhanced Edition Slides prepared by David
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Types of control
• Multiple controls
Systems using two or more of the feedforward, concurrent and feedback control processes and involving several
strategic control points
• Cybernetic
Self-regulating control system which, once operating, can
automatically monitor the situation and take corrective action when necessary
• Non-cybernetic
Control system relying on human discretion as a basic part of its process
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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Managerial approaches
• Bureaucratic control
• Clan control
• Market control
• Control & innovation
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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Managerial approaches
Bureaucratic control:
Managerial approach relying on regulation through rules, policies, supervision, budgets, schedules, reward systems and other administrative
mechanisms aimed at ensuring employees exhibit appropriate behaviours and meet performance
standards.
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Enhanced Edition Slides prepared by David
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Managerial approaches
Clan control:
Managerial approach relying on values, beliefs,
traditions, corporate culture, shared norms and
informal relationships to regulate employee
behaviours and facilitate reaching of organisational goals.
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Managerial approaches
Market control:
Managerial approach relying on market mechanisms
to regulate prices for certain clearly specified goods and services needed by an organisation.
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Managerial approaches
Control & innovation:
Four levers for strategic control/innovation—
• Belief systems
Mission, core values
• Boundary systems
Risk avoidance, policies, rules, procedures
• Performance management systems
Critical goals, evaluation & feedback
• Interactive monitoring systems
Opportunity focus, networking, continuous search & learning
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Enhanced Edition Slides prepared by David
Meacheam & George Sansbury
16
Assessing control systems
Negative attitudes
Induced by excessive &
poorly designed controls
Negative attitudes
Induced by excessive &
poorly designed controls
Operating delays
‘actions needed by
feedforward &
concurrent controls’
Operating delays
‘actions needed by
feedforward &
concurrent controls’
Game playing
‘managers improve their standing …by manipulating resource usage &/or data’
Game playing
‘managers improve their standing …by manipulating resource usage &/or data’
Behavioural displacement
‘behaviour encouraged inconsistent with organisational
goals’
Behavioural displacement
‘behaviour encouraged inconsistent with organisational
goals’
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Enhanced Edition Slides prepared by David
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17
Assessing control systems
Over-control versus under-control:
Over-control
‘limiting individual job autonomy
to the point where it seriously inhibits
job performance’
Over-control
‘limiting individual job autonomy
to the point where it seriously inhibits
job performance’
Under-control
‘ giving autonomy to an employee to where the organisation loses the ability
to direct efforts’
Under-control
‘ giving autonomy to an employee to where the organisation loses the ability
to direct efforts’
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
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18
Assessing control systems
Characteristics of effective control systems • Future oriented
• Multi-dimensional
• Cost-effective
• Accurate
• Realistic
• Timely
• Monitorable
• Acceptable to organisational
members
• Flexible
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Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
Meacheam & George Sansbury
19
Lecture summary
• Control as a management function
– Significance of the control process
– Role of controls
– levels of control
• The control process
– Steps in the process
– Strategic control points
• Types of control
– Types by timing, multiple, cybernetic, non-cybernetic
Trang 20© 2003 McGraw-Hill Australia Pty Ltd PowerPoint
Slides t/a Management: A Pacific Rim Focus
Enhanced Edition Slides prepared by David
Meacheam & George Sansbury
20
Lecture summary
• Managerial approaches to control
– Bureaucratic, clan, market
– Control & innovation
• Assessing control systems
– Dysfunctions
– Over-control/under-control
– Characteristics of effective control systems