Chapter 16

The four control process steps are

(1) establish standards; (2) measure performance; (3) compare performance to standards; and (4) take corrective action, if necessary.

Keys to your managerial success

-Find your passion and follow it. -Encourage self-discovery, and be realistic. -Every situation is different, so be flexible -Fine-tune your people skills -Learn how to develop leadership skills -Treat people as if they matter, because they do -Draw employees and peers into your management process -Be flexible, keep your cool, and take yourself lightly

Possible disadvantages of bureaucracy

1. Excessive paperwork or "red tape" 2. Slowness in handling problems 3. Rigidity in the face of shifting needs 4. Resistance to change 5. Employee apathy

Levels of control

1. Strategic control 2. Tactical control 3. Operational control

Key to successful control systems

1. They are strategic & results oriented 2. They are timely, accurate, & objective 3. They are realistic, positive, & understandable & encourage self-control 4. They are flexible

Steps in the Control Process

1. establish standards 2. measure performance 3. compare performance to standards 4. take corrective action, if necessary

Why do we need control measures?

1.To adapt to change and uncertainty e.g. self driving cars 2.To discover irregularities and errors e.g. Tesla car crash in auto-pilot mode 3.To reduce costs, increase productivity, or add value e.g. employee satisfaction surveys 4. To detect opportunities e.g. Uniqlo uses measures to detect new markets, opportunities 5. To provide performance feedback e.g. restaurant survey after dining 6.To decentralize decision making and facilitate teamwork e.g. shortage of doctors may lead to more group work, rise in boutique practices and increased delegation to nurses.

Barriers to control success

1.Too much control 2.Too little employee participation 3.Overemphasis on means instead of ends 4.Overemphasis on paperwork 5.Overemphasis on one instead of multiple approaches

Which of the following is a way that AI can be used to increase productivity?

AI is superior to humans when it comes to analyzing big data and identifying patterns.

____ control is top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

Bureaucratic

What are the risks associated with clan-control systems?

Clan control does not assume that the interests of the organization and individuals naturally diverge.

Clan control

Clan control represents cultural values and is the opposite of bureaucracy. Clan control relies on beliefs and informal relationships to regulate employee behaviors. Organizations using this require trust in their employees.

________ is the process of instituting ongoing small, incremental improvements in all parts of an organization. Multiple Choice

Continuous improvement

What are some of the downsides of tight control systems?

Control is making something happen the way it was planned to happen. Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. Controlling is the fourth management function and its purpose is to make sure that performance meets objectives. Control is needed in organizations for 6 reasons: To adapt to change and uncertainty To discover irregularities & errors To reduce costs, increase productivity, or add value To detect opportunities To deal with complexity To decentralize decision making & facilitate teamwork Some of the downsides of tight control systems is employee frustration, this frustration can lead them to ignore or try to sabotage the control process. Relation to Best Laid Incentives Case: Hiram tried to take control of everyone in the company, to the point where he was firing people if they did not live up to his specific expectations, and this negatively impacted the company.

List the steps in the control process. Relate each step to your service learning project experience thus far.

Establishment standards, Measure performance, Compare performance, Take corrective action if necessary

Which of the following may be done as a corrective action in the control process?

Evaluate performance and take action.

Anchor Resort and Casino surveils its customers and employees through a complex network of recorded video; undercover security agents; and weighing chips, cards, and coins for key transactions. What potential disadvantage of monitoring employees should Anchor managers consider?

Extensive monitoring may cause employees to feel that Anchor Resort does not trust them

Are financial measures the most important to measure?

Managers want a balanced presentation of both financial and operational measures.The balanced scorecard includes financial measures that tell the results of actions already taken. And it complements the financial measures with operational measures on customer satisfaction, internal processes, and the organization's innovation and improvement activities—operational measures that are the drivers of future financial performance.

operational control

Monitoring performance to ensure that operational plans —day-to-day goals—are being implemented and then taking corrective action as needed

Strategic control

Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed

Tatical Control

Monitoring performance to ensure that tactical plans— those at the divisional or departmental level—are being implemented

Explain the six areas of organizational control

The six areas of organizational control are physical, human, informational, financial, structural, and cultural. The physical area includes buildings, equipment, and tangible products. The human resources controls are those used to monitor employees and include personality tests and drug testing for hiring, performance tests during training, performance evaluations to measure work productivity, and employee surveys to assess job satisfaction and leadership. The informational area includes production schedules, sales forecasts, environmental impact statements, analyses of competition, public relations briefings that are controls on an organization's various information resources. The financial area looks at the financial controls of the organization. The structural area refers to how the organization is arranged from a hierarchical or structural standpoint such as bureaucratic and decentralized control. The cultural area is an informal method of control. It influences the work process and levels of performance through the set of norms that develop as a result of the values and beliefs that constitute an organization's culture.

The control process begins with establishing standards. True or false?

True

Feedback control-

Used by supervisors and managers. Collect info about project when done. E.g. Receiving test scores a week after the test.

Strategy map

Visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization

Concurrent control-

collect performance information in real time e.g. track vehicles with GPS to discover best routes

________ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

controlling

employee monitoring programs may make it difficult to retain employees because they

create an intrusive environment that signals a lack of trust.

Controlling

defined as monitoring performance, comparing it with goals, and taking corrective action as needed

A control standard, or performance standard, or simply standard, is the

desired performance level for a given goal.

Control helps organizations to

discover irregularities and errors

characteristics of bureaucracy

division of labor, hierarchy of authority, written rules and regulations, impersonality, employment based on technical qualifications

Types of Control

feedforward, concurrent, feedback

Feedforward control-

focus is on preventing future problems e.g. Nestle and farmers

Balanced scoreboard

gives top managers a fast but comprehensive view of the organization via four indicators: (1) customer satisfaction, (2) internal processes, (3) innovation and improvement activities, and (4) financial measures

Enright Industrial Leasing has effective control processes, allowing its managers to discover ________ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

irregularities and errors

Controlling is defined as

monitoring performance, comparing it with goals, and taking corrective action as needed.

Continuous improvement is defined as

ongoing small, incremental improvements in all parts of an organization, including all products, services, functional areas, and work processes.

AI can increase productivity by accessing real-time big data and creating actionable insights. AI can understand

patterns in big data that humans cannot. It can then recommend actions to capitalize on these opportunities.

areas of control

physical=buildings, equipment and tangible products human resources= personality tests, drugs tests informational=Production schedules, sales forecasts financial=budgets, cash flow info structural=decentralized, bureaucratic cultural=informal method of control. E.g. Does the organizations culture foster innovation?

Standards are best measured when they are

quantifiable.

There are three possibilities for corrective action when modifying the control process: make no changes

recognize and reinforce positive performance, and take action to correct negative performance.

Six Sigma is a

rigorous statistical analysis process that reduces defects in manufacturing and service-related processes.

The supply chain is the

sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers.

Companies that put each newly developed product or process through rigorous analysis and testing, with the goal of eliminating errors to reduce wasted time and money, are practicing

six sigma

The sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers, is known as the

supply chain