BUSI 4005 Lecture Notes - Lecture 1: Controllability
Document Summary
Management control focuses on encouraging, enabling, or, sometimes, forcing employees to act in the orga(cid:374)izatio(cid:374)"s (cid:271)est i(cid:374)terest. If desig(cid:374)ed properly, it (cid:449)ill i(cid:374)flue(cid:374)(cid:272)e e(cid:373)ployee"s (cid:271)eha(cid:448)iors i(cid:374) a (cid:449)ay that will increase the probability the org will achieve its goals. More or better mcss should only be implemented if the benefits would exceed the costs. Function of mc is to influence behaviors in desirable ways. Benefit of mc is the increased probability that the org"s o(cid:271)je(cid:272)ti(cid:448)es (cid:449)ill (cid:271)e a(cid:272)hie(cid:448)ed. Management the process of organizing resources and directing activities for the purpose of achieving organizational objectives. Control back end of the management process (execution and strategy implementation). Management & control: objective setting strategy formulation management control. Objectives are necessary prerequisites for any purposeful activity. Without o(cid:271)je(cid:272)ti(cid:448)es, it"s i(cid:373)possi(cid:271)le to: assess (cid:449)hether e(cid:373)ployee"s a(cid:272)tio(cid:374)s are purposeful & to (cid:373)ake (cid:272)lai(cid:373)s a(cid:271)out org"s su(cid:272)(cid:272)ess. Define how orgs should use their resources to meet their objectives.