Control Mechanisms in Management
Control Mechanisms
MGT/330
November 12, 2012
Control Mechanisms
The four control standards the team chose to explore in regard to McDonald’s are performance, performance vs. standards, corrective action, and reinforce successes. The team will compare and contrast these control mechanisms, and determine the effectiveness of each. The team will also examine the positive and negative reactions to the use of these controls.
Performance Standards
“A standard is an expected performance for a given goal or target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed” (Bateman, 2009, p. 576). Performance standards relate directly to the success of the company. McDonald’s has set standards for customer service, and customer satisfaction. The standards are communicated to the employees by the store manager and training manager. Management sets attainable goals to motivate employee performance; he or she communicates these goals clearly, and revaluates these goals.
Evaluating Performance
Companies should evaluate the performance of employees and management to ensure the goals of the company are achieved. In the past McDonald’s evaluated their own-operators on a regular basis until the mid-1990s. McDonald’s discontinued evaluation that resulted in lower customer satisfaction. McDonald’s reinstated performance evaluations in 2001 to improve customer satisfaction. Today regional managers inspect and evaluate franchises on a regular basis. Forms with standard operation procedures enhance the evaluation process, and this information is input in McDonald’s database for further review. Today’s managers can input the evaluation from his or her company PDA.
Performance vs. Standards “The managerial principle of exception states, which control is enhanced by concentrating on the exceptions to, or significant deviation from, the expected result or standard (Bateman, 2009, p.
MGT/330
November 12, 2012
Control Mechanisms
The four control standards the team chose to explore in regard to McDonald’s are performance, performance vs. standards, corrective action, and reinforce successes. The team will compare and contrast these control mechanisms, and determine the effectiveness of each. The team will also examine the positive and negative reactions to the use of these controls.
Performance Standards
“A standard is an expected performance for a given goal or target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed” (Bateman, 2009, p. 576). Performance standards relate directly to the success of the company. McDonald’s has set standards for customer service, and customer satisfaction. The standards are communicated to the employees by the store manager and training manager. Management sets attainable goals to motivate employee performance; he or she communicates these goals clearly, and revaluates these goals.
Evaluating Performance
Companies should evaluate the performance of employees and management to ensure the goals of the company are achieved. In the past McDonald’s evaluated their own-operators on a regular basis until the mid-1990s. McDonald’s discontinued evaluation that resulted in lower customer satisfaction. McDonald’s reinstated performance evaluations in 2001 to improve customer satisfaction. Today regional managers inspect and evaluate franchises on a regular basis. Forms with standard operation procedures enhance the evaluation process, and this information is input in McDonald’s database for further review. Today’s managers can input the evaluation from his or her company PDA.
Performance vs. Standards “The managerial principle of exception states, which control is enhanced by concentrating on the exceptions to, or significant deviation from, the expected result or standard (Bateman, 2009, p.
References: McDonalds. (2011). 2011 Annual Report. Retrieved from http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/Investors%202012/2011%20Annual%20Report%20Final.pdf McDonalds. (2012). Awards and Recognition. Retrieved from http://www.aboutmcdonalds.com/mcd/our_company/awards_and_recognition.html McDonalds. (2012). Our Company. Retrieved from http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_system.html McDonalds. (2009). Worldwide Corporate Responsibility Online Report: The values we bring to the table. Retrieved from http://www.mcdonalds.at/presse/maps/McDCSR.pdf Pakhare, J. (2011). Management Concepts - The Four Functions of Management. Retrieved from http://www.buzzle.com/articles/management-concepts-the-four-functions-of-management.html Zuber, A. (2001). McD restructures to beef up performance. Retrieved from https://classroom.phoenix.edu/afm212/secure/view-attachment.jspa?ID=24579013&messageID=165509229&name=McDonald 's Jeremy.pdf&view=inline