1. The Control Process
- Standards are a basis of comparison for measuring the extent to which organizational performance is
satisfactory or unsatisfactory
- First criterion for a good standard is that it must enable goal achievement.
- Second, standard can also be determined by benchmarking other companies. Benchmarking is the process of
determining how well other companies perform business functions or tasks. In other words, benchmarking is the
process of determining other companies’ standards
- So the first step in setting standards is to determine what to benchmark
- The next step is to identify the companies against which to benchmark your standard
Comparison to Standards
- The next step in the control process is to compare actual performance to performance standards. ( The better
the system, the easier it is for companies to track their progress and identify problems that need to be fixed
- The next step in the control process is to identify performance deviation, analyze those deviations, and then
develop and implement programs to correct them.
- Control is a continuous, dynamic process. It gins with actual performance and measures of that performance.
Managers then compare performance to the pre-established standards. If they identify deviations from standard
performance, they analyze the deviation and develop corrective programs. Then implementing the programs
achieves the desired performance. To maintain performance levels at standard, managers must repeat the
entire process again and again in an endless feedback loop. So control is not a one-time achievement or result.
Feedback, Concurrent, and feed forward Control
- Feedback control is a mechanism for gathering information about performance deficiencies after they occurs.
This information is then used to correct or prevent performance deficiencies.
- Concurrent control is a mechanism for gathering information about performance deficiencies as they occur.
Thus, it is an improvement over feedback, because it attempts to eliminate or shorten the delay between
performance and feedback about the performance.
- Feed forward control is a mechanism for gathering information about performance deficiencies before they
- Control loss occurs when behavior and work procedures do not conform to standards.
- Maintaining control is important because control loss prevents goal achievement
- When control loss occurs, managers need to find out what, if anything, they could have done to prevent it. In
other words, it means identifying deviation from standard performance, analyzing the causes of those
deviations, and taking corrective action
- To determine whether control is worthwhile, managers need to carefully assess regulation costs - whether the
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costs and unintended consequences of control exceed its benefit.
- An often-overlooked factor in determining the cost of control is the set of unintended consequences that
sometimes accompany increased control.
- Control systems help companies, managers and workers accomplish their goals, but at the same time control
system help solve some problems, they can create others
- Another factor to consider is cybernetic feasibility 可可可, the extent to which it is possible to implement each step
in the control process: clear standards of performance, comparison of performance to standards, and corrective
- If one or more steps implemented, then maintaining effective control may be difficult or impossible
2. Control Methods
- Bureaucratic Control is top-down control, in which managers try to influence employee behavior by rewarding
or punishing employees for compliance or noncompliance with organization polices rules, and procedures.
- By encouraging managers to apply well-thought-out rules, polices, and procedures in impartial, consistent
manner to everyone in the organization, bureaucratic control is supposed to make companies more efficient,
effective, and fair
- Another characteristic of bureaucratically controlled companies is that due to their rule- and policy-driven
decision-making, they are highly resistant to change and slow to respond to customers and competitors.
- Objective control, which is the use of observable measures of employee behavior or outputs to assess
performance and influence behavior.
- Objective control differs from bureaucratic control in that mangers focus on the observation or measurement of
worker behavior or outputs rather than policies and rules.
- Behavior control is the regulation of behaviors and actions that workers perform on the job. The basic
assumption of behavior control is that if you do the right things every day, then those things should lead to goal
- Output control measures the results of their efforts. Output control is often coupled with rewards and
Three things must occurs for output control and rewards to lead to improve business results
1. Output control measures must be reliable, fair, and accurate
2. Employees and managers must believe that they can produce the desired results
3. The rewards or incentives tied to outcome control measures must truly be dependent on achieving
established standards of performance
- A company’s widely shared values and beliefs guide workers’ behavior and decision
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- Normative controls are created in two ways.
1. Companies that use normative control are careful about whom they hire
2. Wit normative controls, managers and employees learn what they should and should not do by observing
experienced employees and by listening to the stories they tell about the company
Concertive 协协协 Control
- Whereas normative controls are based on the strongly held, widely shared beliefs throughout a company,
concertive controls are based on beliefs that are shaped and negotiated by work groups
- While normative controls are driven by strong organizational cultures, concertive control usually arise when
companies give autonomous work groups complete responsibility for task completion
- Autonomous work groups are groups that operate without managers and are completely responsible for
controlling work group processes, outputs, and behavior. These groups do their own hiring, firing, worker
discipline, work schedules, materials ordering, budget making and meeting, and decision-making.
- Autonomous work groups evolve through two phases as they develop concertive control
1. Autonomous work group members learn to work with each other, supervise each other’s work, and develop
the values and beliefs that will guide and control their behavior.
2. The emergency and formalization of objective rules to guide the control behavior. The beliefs and values
developed in phase one usually develops into more objective rules as new members join teams. The clearer
those rules, the easier it becomes for new members to figure out how and how not to behave
- Also called self-management, is a control system in which managers and workers control their own behvaiour.
- In self-control or self-management