Test 3 Ch.11 Pt.7

What do output controls do?

guide employee behavior by defining expected results, but leave the means to these results open to individual employees, groups, or SBUs.

What are strategic control & reward systems?

internal governance mechanisms to align the incentives of principals & agents.

What kind of activities are strategy formulation & strategy implementation?

iterative & interdependent activities.

What are input controls?

management designed mechanisms that were to be considered before employees made any business decisions.

What are some examples of strategic control & reward systems?

organizational culture, input controls, & output controls.

What are results-only-work-enviornments (ROWEs)?

output controls that attempt to tap intrinsic employee motivation.

What do firm frequently tie employee compensation & rewards to?

predetermined goals.

Post-It Notes & Scotch Tape were the results of what?

serendipity.

Who are the principals?

shareholders.

What do strategic control & reward systems allow for managers to do?

specify goals, measure progress, & provide performance feedback.

What are the goals of standard operating procedures?

specify the conversion process from beginning to end in great detail to guarantee standardization & minimize deviation.

What is the key to input controls?

the use of budgets. Another thing to help input controls are standard operating procedures.

What sanctions do norms within a firm with an organizational culture do in the face of an undesirable behavior?

they use sarcasm, ostracism, & ridicule.

What framework has 3M relied on?

ROWE framework.

Intrinsic motivation in a task is highest when?

an employee has autonomy, mastery, & purpose.

What do input controls do?

define & direct employee behavior through a set of explicit & codified rules & standardized procedures.

Successful strategy implementation requires managers to do what?

design & shape structure, culture, & control mechanisms.

What do outcome controls do at the corporate level?

discourage collaboration.

Who are the agents?

employees.

When are output controls best applied?

when a firm focuses on a single line of business or pursues unrelated diversification.

When are output control especially effective?

when factors internal to the firm determine the relationship between effort and expected performance.

When do firms use input controls?

when the goal is to define the ways & means to reach a strategic goal & to ensure a predictable outcome.