BUSI 4005 Lecture Notes - Lecture 2: Purchase Order, Job Design, Mystery Shopping
26 Feb 2018
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Document Summary
Action controls ensures that employees perform (or do not perform) certain actions known to be beneficial (or harmful) to the organization. They are usable and effective only when managers: Know what actions are desirable difficult in highly complex and uncertain task environments. Have the ability to make sure that the desirable actions occur. Action controls have four basic forms: behavioral constraints these are (cid:862)(cid:374)egative(cid:863) or (cid:862)co(cid:374)strai(cid:374)i(cid:374)g(cid:863) for(cid:373)s of actio(cid:374) co(cid:374)trol. They make it impossible or a least more difficult for employees to do things that they should not do. There are two main types of behavioral constraints physical and administrative. Physical locks on doors, passwords, limited access etc. Administrative restriction of decision-making authority, separation of duties etc: preaction reviews scrutiny of action plans, investment proposals and budgets. Reviewer can approve or disapprove, could ask for modifications. Common form of preaction review takes place during the planning and budgeting process: action accountability holding employees accountable for the actions they take.
