Types of Control in an Organization

1101 Words Jan 23rd, 2013 5 Pages
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
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• Goals should be set appropriately so that managers are motivated to accomplish them
Organization-Wide Goal Setting Output Control
• Operating Budgets
– Blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently.
Effective Output Control
1. Objective financial measures
2. Challenging goals and performance standards
3. Appropriate operating budgets
Problems with Output Control
• Managers must create output standards that motivate at all levels
• Should not cause managers to behave in inappropriate ways to achieve organizational goals
Behavior Control
• Direct supervision
– managers who actively monitor and observe the behavior of their subordinates
– Teach subordinates appropriate behaviors
– Intervene to take corrective action
– Most immediate and potent form of behavioral control
– Can be an effective way of motivating employees
Problems with Direct Supervision
• Very expensive because a manager can personally manage only a relatively small number
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