Chapter Seventeen Foundations of Controlling
Chapter Seventeen Foundations of Controlling
Learning Objectives Define control Describe the three approaches to control Explain why control is important Describe the control process Distinguish between the three types of control Describe the qualities of an efective control system Explain how controls can become dysfunctional Identify three current ethical issues in control
Learning Objectives Define control Describe the three approaches to control Explain why control is important Describe the control process Distinguish between the three types of control Describe the qualities of an effective control system Explain how controls can become dysfunctional Identify three current ethical issues in control
Characteristics of three Approaches to Control Systems Type of Control Characteristics Market Uses external market mechanisms, such as price com petition and relative market share, to establish stan dards used in system. Typically used by organizations whose products of services are clearly specified and distinct and how face considerable marketplace com petition Bureaucratic Emphasizes organizational authority. Relies on admin istrative and hierarchical mechanisms such as rules regulations, procedures, policies, standardization or activities, well-defined job descriptions, and budgets, to ensure that em ployees exhibit appropriate behaviors and meet performance standards Clan Regulates em ployee behavior by the shared values, norms, traditions, rituals, beliefs, and other aspects of the organization s culture. Often used by organizations where teams are common and where technology is changing rapidly
Characteristics of Three Approaches to Control Systems Type of Control Characteristics Market Uses external market mechanisms, such as price competition and relative market share, to establish standards used in system. Typically used by organizations whose products of services are clearly specified and distinct and how face considerable marketplace competition. Bureaucratic Emphasizes organizational authority. Relies on administrative and hierarchical mechanisms, such as rules, regulations, procedures, policies, standardization of activities, well-defined job descriptions, and budgets, to ensure that employees exhibit appropriate behaviors and meet performance standards. Clan Regulates employee behavior by the shared values, norms, traditions, rituals, beliefs, and other aspects of the organization’s culture. Often used by organizations where teams are common and where technology is changing rapidly. Figure 18-1
The Planning-Controlling Link Planning Goals Objectives Strategies Plans Controlling OrganIzing Standards Structure Measurements Human Comparisons resources Action management Leading Motivation Leadership Communication Individual and group behavior Figure 18-2
The Planning-Controlling Link Goals Objectives Strategies Plans Planning Structure Human resources management Organizing Motivation Leadership Communication Individual and group behavior Leading Standards Measurements Comparisons Action Controlling Figure 18-2
Defining the Acceptable Range of variation Acceptable o upper limit Acceptable Standard range of variation 5 Acceptable● E lower limit t2t+3t+4t+5 Fiqure 18-3
Defining the Acceptable Range of Variation Standard Acceptable upper limit Acceptable lower limit Measurement of Performance t t+1 t+2 t+3 t+4 t+5 Acceptable range of variation Figure 18-3