Chapter 8

Organizational Control

How managers decide to influence and shape employees’ behavior and performance.

Importance: Can tell a manager how to obtain superior efficiency, quality, responsiveness to customers, and innovation, increase competitive advantage.

To measure the performance of the organization and get feedback, managers may use control systems. Thanks to IT this systems were revolutionized and are useful for all production stages.

1. Input stage: feedforward control.

2.Conversion stage: concurrent control.

3. Output stage: feedback control.

Types of control

Output

Behavior

Organizational culture/clan

- Financial measures of performance.

- Organizational goals

- Operating budgets

- Values

- Norms

- Socialization

Direct supervision

Management by objectives

Rules and standard operating procedures

Goals, targets or output performance standards.

Monitor and observe the behavior, mentor on appropiate actions, intervene when needed.

Shared set of beliefs, expectations, values, norms, and work routines

Assign goals to each level of organization, then based on abilities to each person and evaluate periodically each person.

Establish a comprehensive system of rules and standard operating procedures.