Types of Control in an Organization
TYPES OF CONTROL IN AN ORGANIZATION
Learning Objectives
• Define organizational control, and describe the four steps of the control process.
• Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
• Identify the main behavior controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
• Discuss the relationship between organizational control and change, and explain why managing change is a vital management task
• Organizational Control
• Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals
Managers must monitor and evaluate:
– Is the firm efficiently converting inputs into outputs?
• Are units of inputs and outputs measured accurately?
– Is product quality improving?
• Is the firm’s quality competitive with other firms?
– Are employees responsive to customers?
• Are customers satisfied with the services offered?
– Are our managers innovative in outlook?
• Does the control system encourage risk-taking?
Control Systems
– Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively.
• A good control system should:
– be flexible so managers can respond as needed.
– provide accurate information about the organization.
– provide information in a timely manner.
Discussion Question?
Which is the most important type of control?
A. Feedforward
B. Feedback
C. Concurrent
D. Accounting
Three Types of Control
TYPES OF CONTROL
• Feedforward Controls
– Used to anticipate problems before they arise so that problems do not occur later during the conversion process
– Giving stringent product specifications to suppliers in advance
– IT can be used to keep in contact
Learning Objectives
• Define organizational control, and describe the four steps of the control process.
• Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
• Identify the main behavior controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
• Discuss the relationship between organizational control and change, and explain why managing change is a vital management task
• Organizational Control
• Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals
Managers must monitor and evaluate:
– Is the firm efficiently converting inputs into outputs?
• Are units of inputs and outputs measured accurately?
– Is product quality improving?
• Is the firm’s quality competitive with other firms?
– Are employees responsive to customers?
• Are customers satisfied with the services offered?
– Are our managers innovative in outlook?
• Does the control system encourage risk-taking?
Control Systems
– Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively.
• A good control system should:
– be flexible so managers can respond as needed.
– provide accurate information about the organization.
– provide information in a timely manner.
Discussion Question?
Which is the most important type of control?
A. Feedforward
B. Feedback
C. Concurrent
D. Accounting
Three Types of Control
TYPES OF CONTROL
• Feedforward Controls
– Used to anticipate problems before they arise so that problems do not occur later during the conversion process
– Giving stringent product specifications to suppliers in advance
– IT can be used to keep in contact