Management Chapter 15

clan control

(sometimes called decentralized control) seeks to regulate overall organizational functioning through reliance on informal, organic structural arrangements goal: employee commitment degree of formality: group norms, culture, self-control performance expectations: enhanced performance above and beyond minimum reward: directed at group performance participation: extended and informal

bureaucratic control

(sometimes called hierarchical control) attempts to control the firms overall functioning through formal, mechanistic structural arrangements goal: employee compliance degree of formality: strict rules, formal controls, rigid hierarchy performance expectations: minimum levels of acceptable performance reward: directed at individual performance with either an implied or formal written code of participation: limited employee input and formal ex: IBM

management control system

a planned, ordered scheme of management control allows managers to readily assess where the firm actually is at a point in time relative to where it wants or expects to be

organizational control

broad-based form of control that guides all organizational activities and oversees the overall functioning of the whole firm two dominant forms of this control are bureaucratic and clan control

importance/purpose of control information card

control is an essential part of effective organizational management. control helps: (pg. 441-443) an organization adapt to changing conditions limits the magnification of efforts assists in dealing with increased complexity helps minimize costs

strategic control

ensures that the organization effectively understands and responds to the realities of its environment effective _________ control should tell managers if their strategies are appropriate

evaluating performance/taking corrective action

final step of the control process; managers evaluate ______________ relative to standards and then take _____________ action can choose three basic options as the appropriate response: (pg. 446-447) maintain status quo, change standards, or correct the deviation

performance standards

first step in the control process; targets set by management against which actual performance is compared at a future date should be stated in very clear, easily measurable terms, and they should be realistic given both the internal and competitive environment in which the organization operates should also reflect organizational strategy and therefore be expected to vary widely among organizations and even internally within a particular organization with respect to different products or markets

management control

includes all activities an organization undertakes to ensure that its actions lead to achievement of its objectives

levels of control

strategic, organizational, operational, and financial

measuring performance

the second step in the control process; these assessments occur continually and it is sometimes difficult to do this accurately

comparing performance against standards

third step in the control process; actual performance may match the performance standard exactly, or it may be higher or lower than the target management must decide how much deviation from standards will be tolerated before considering corrective action

control process

this process consists of 4 basic steps: establishing performance standards, measuring performance, comparing performance against standards, and evaluation/corrective action