Transcript Document
Organizational Control
• Organizational Control
– Managers monitor and regulate how
efficiently and effectively an organization
and its members are performing the
activities necessary to achieve
organizational goals
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Organizational Control
Managers must monitor and evaluate:
– Is the firm efficiently converting inputs into outputs?
• Are units of inputs and outputs measured
accurately?
– Is product quality improving?
• Is the firm’s quality competitive with other firms?
– Are employees responsive to customers?
• Are customers satisfied with the services
offered?
– Are our managers innovative in outlook?
• Does the control system encourage risk-taking?
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Control Systems
• Control Systems
– Formal, target-setting, monitoring,
evaluation and feedback systems that
provide managers with information about
whether the organization’s strategy and
structure are working efficiently and
effectively.
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Three Types of Control
Figure 11.1
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Control Process Steps
Figure 11.2
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Three Organizational Control Systems
Figure 11.3
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Output Control
• Operating Budgets
– Blueprint that states how managers intend to
use organizational resources to achieve
organizational goals efficiently.
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Behavior Control
• Direct supervision
– managers who actively monitor and observe
the behavior of their subordinates
– Teach subordinates appropriate behaviors
– Intervene to take corrective action
– Most immediate and potent form of
behavioral control
– Can be an effective way of motivating
employees
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Management by Objectives
• Management by Objectives (MBO)
– formal system of evaluating subordinates for
their ability to achieve specific
organizational goals or performance
standards and to
meet operating
budgets
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Management by Objectives
1. Specific goals and objectives are
established at each level of the
organization
2. Managers and their subordinates
together determine the subordinates’
goals
3. Managers and their subordinates
periodically review the subordinates’
progress toward meeting goals
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Bureaucratic Control
• Bureaucratic Control
– Control through a system of rules and
standard operating procedures (SOPs) that
shapes and regulates the behavior of
divisions, functions, and individuals.
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Organization Change
Movement of an organization away from its
present state and toward some desired
future state to increase its efficiency and
effectiveness
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Organizational Change
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Lewin’s Force-Field Theory of Change
• There are a wide variety of forces arising
from the way an organization operates,
from its structure, culture, and control
systems that make organizations
resistant to change
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Lewin’s Force-Field Theory of Change
• To get an organization to change,
managers must find a way to increase
the forces for change, reduce resistance
to change, or do both simultaneously
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Steps in the Organizational Change
Process
Figure 11.7
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Evaluating the Change
• Benchmarking
– The process of comparing one company’s
performance on specific dimensions with
the performance of other, high-performing
organizations.
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Strategic Human Resource
Management
• Human Resource Management (HRM)
–Activities that managers engage in to attract
and retain employees and to ensure that they
perform at a high
level and contribute
to the accomplishment
of organizational goals.
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Strategic Human Resource
Management
• HRM activities
– Recruitment and selection
– Training and development
– Performance appraisal and feedback
– Pay and benefits
– Labor relations
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Component
s of a
Human
Resource
Managemen
t System
Figure 12.1
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HRM Components
• Recruitment and Selection
– Used to attract and hire new employees
who have the abilities, skills, and
experiences that will help an organization
achieve its goals.
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HRM Components
• Training and Development
– Ensures that organizational members
develop the skills and abilities that will
enable them to perform their jobs effectively
in the present and the future
– Changes in technology and the environment
require that organizational members learn
new techniques and ways of working
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HRM Components
• Performance Appraisal and Feedback
– Provides managers with the information
they need to make good human resources
decisions about how to train, motivate, and
reward organizational members
– Feedback from performance appraisal
serves a developmental purpose for
members of an organization
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HRM Components
• Pay and Benefits
– Rewarding high performing organizational
members with raises, bonuses and
recognition.
• Increased pay provides additional
incentive.
• Benefits, such as health insurance,
reward membership in firm.
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HRM Components
• Labor relations
– Steps that managers take to develop and
maintain good working relationships with the
labor unions that may represent their
employees’ interests
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The Legal Environment of HRM
• Equal Employment Opportunity (EEO)
– The equal right of all citizens to the
opportunity to obtain employment
regardless of their gender, age, race,
country of origin, religion, or disabilities.
– Equal Employment Opportunity Commission
(EEOC) enforces employment laws.
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Who Appraises Performance?
Figure 12.6
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Effective Performance Feedback
• Formal appraisals
– An appraisal conducted at a set time during
the year and based on performance
dimensions that were specified in advance
• Informal appraisals
– An unscheduled appraisal of ongoing
progress and areas for improvement
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Pay and Benefits
• Pay level
– The relative position of an organization’s
incentives in comparison with those of other
firms in the same industry employing similar
kinds of workers
• Managers can decide to offer low, average or
high relative wages.
• High wages attract and retain high performers
but raise costs; low wages can cause turnover
and lack of motivation but provide lower costs.
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Labor Relations
• Laws regulating areas of employment.
– Fair Labor Standards Act (1938) prohibits
child labor, sets a minimum wage and
maximum working hours.
– Equal Pay Act (1963) men and women
doing equal work will get equal pay.
– Work Place Safety (1970) OSHA mandates
procedures for safe working conditions.
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Unions
• Unions
– Represent worker’s interests to management in
organizations.
– The power that a manager has over an individual
worker causes workers to join together in unions to
try to prevent this.
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Unions
• Collective bargaining
– Negotiation between labor and
management to resolve conflicts and
disputes about issues such as working
hours, wages, benefits, working conditions,
and job security.
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