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Where 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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Define organizational control

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Give 3 examples of organizational control

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Keeping an organization on track, anticipating events, changing the organization to respond to opportunities and threats

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With regards to organizational control, what are 4 things managers must ask themselves ?

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Is the firm efficiently converting inputs into outputs? Is product quality improving? Are employees responsive to customers? Are our managers innovative in outlook?

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What are control systems?

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Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about how well the organizations strategy and structure are working

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Give 3 examples of what a good control system should have?

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Flexibility, so managers can respond when needed. Provide accurate information about the organization. Provide information in a timely manner.

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Who created the balanced scorecard control system?

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Kaplan & Norton

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Balanced scorecard: what are the 4 "perspectives"?

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Financial perspective, customer perspective, internal business processes/operations perspective, learning and growth perspective

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Balanced scorecard (for HR department): for the financial perspective give three objectives

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Maximizing firm value, maximizing human capital performance, minimizing HR costs

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Balanced scorecard (for HR department): give some examples of HR measurement of the financial perspective

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HC Value added. Labor cost/employee, Capability index, HR ROI, budget variance, revenue per employee

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Balanced scorecard (for HR department): for the customer perspective give 2 objective

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Strategic support for business. High quality

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Balanced scorecard (for HR department): what are some HR measurements for the customer perspective?

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Employer satisfaction index, employee engagement index, fidelity percent resolved 1st call.

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Balanced scorecard (for HR department): for the operations perspective, state 3 objectives

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HR planning alignment with business priorities. Optimize HR service through various delivery channels. World class program for training.

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Balanced scorecard (for HR department): Give some examples of HR measurements for the operations perspective

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% of HR strategic plan implanted HR tech ROI. Fraud index. Cycle time to fill positions. Number of vacant positions

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Balanced scorecard (for HR department): for the learning and growth perspective, state some objectives

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Enhancing employee capability. Performance based culture. Organization integration. Nurturing leadership skills.

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Balanced scorecard (for HR department): give some examples of HR measurement for the learning perspective

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Skill enhancement. Organization health index. Employee diversity. Number of coaching activities implemented. % new hires retention. Potential retention.

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What are the 3 stages of control (sequential of each other) and what kind of control is need at each stage?

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Input stage. Conversion stage. Output stage. feedforward control (anticipate problems before they occur). Concurrent control (manage problems as they occur). Feedback control (manage problems after they have arisen).

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What are the four control process steps?

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1. Establish the standards of performance, goals, or targets against which performance is to be evaluated. 2. measure actual performance. 3. Compare actual performance against chosen standards of performance. 4. Evaluate the result and initiate corrective action if the standard is not being achieved.

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The control process: for the 1st step (target phase) what are two things managers should consider?

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-managers at each organizational level need to set their own standards. -standards must be consistent with the organizations strategy (i.e. for a low cost strategy, standards should be focused closely one reducing costs);

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The control process: for the 2nd step (measurement phase) what is something managers should consider?

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Managers can measure outputs resulting from worker behavior or they can measure the behavior themselves. However, the more non-routine the task, the harder it is to measure performance or output. Causing managers to measure an employee's behavior (e.g. that an employee comes to work on time) rather than the employees output.

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The control process: for the 3rd step (comparison phase) what is something managers should consider?

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Managers must decide if performance actually deviates; often, several problems combine creating low performance.

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The control process: for the 4th step (evaluation and correction phase) what are two things managers should consider?

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-standards have been set too high or too low -workers may need additional training or equipment. (this step is often hard since the environment is constantly changing)

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3 organizational control systems: what are the 3 major types of control?

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Output control, behavior control, organizational culture/ clan control.

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Output control: state the 3 mechanisms of output control

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Financial measures of performance, organizational goals. operating budgets

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Output control: what are some examples of financial measures of performance as a mechanism of output control?

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Ratios. Such as profit, liquidity, leverage, and activity ratios.

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Output control: define organizational goals as a mechanism for output control

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Each division within the firm is given specific goals that must be met in order to attain overall organizational goals.

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Output control: for organizational goals Explain how to create high quality goals

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Goals should be specific and challenging, but not impossible to achieve. (stretch goals). goal setting is a management skill that is developed over time.

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Output control: explain how goal setting is trickled down the organizational. It is called organizational-wide goal setting.

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1. Corporate-level managers set goals for individual divisions that will allow the organization to achieve corporate goals. 2. Divisional manages set goals for each function that will allow the division to achieve its goals. 3. Functional managers set goals for each individual worker that will allow the function to achieve its goals.

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Output control: define operating budgets as a mechanism for output control

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Blueprints state how managers intend to allocate and use the resources they control to attain organizational goals effectively and efficiently.

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Output control: what are some problems with output controls?

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Managers must create output standards that motivate at all levels. -they must be careful to not create short-term goals theta motivate managers to ignore the future -if standards are set too high, workers may engage unethical behaviors to attain them.

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Output control:: recall the GAP Inc. example. Example how they changed their organizational control system and the results.

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-shift from process-driven to outcome-driven culture -"results only work environment (ROWE)" employees only evaluated on performance not presence. Value not effort; -employees had complete autonomy on how they approach their work. -increased employee engagement -increased productivity -reduced employee turnover

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Behavior control: what are the 3 mechanisms of behavior control?

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Direct supervision. Management by objectives. Rules and standard operating procedures (bureaucratic control)

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Behavior control: Define direct supervision as mechanism of behavior congrol

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Managers who directly manage can teach, reward, lead by example and take corrective action as needed

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Behavior control: give three examples of the challenges of using direct supervision as a mechanism of behavior control

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-can be expensive since only a few workers can be personally managed by one manager and many managers are needed -close supervision demotivates workers who desire les scrutiny and more autonomy, causing them to avoid responsibility (think micromanaging) -direct supervision is difficult to do effectively in complex job settings.

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Behavior control: define management by objectives (MBO)

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A goal-setting process in which managers and subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate their attainment of those goals.

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Behavior control: What makes a goal "smart"?

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S-specific M-measurable A-attainable R-relevant T-time-bound

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Behavior control: define bureaucratic control

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Control though a system of rules and standard operating procedures (SOPs) that shape the behaviors of divisions, functions and individuals.

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Behavior control: provide the pros and cons of standard operating procedures (bureaucratic control)

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pro- rules and SOPs tell the worker what to do (standardized actions) so outcomes are predictable; Con-there is still a need for output control to correct mistakes Con- rules easier to make than discard, leading to bureaucratic red tape and slowing organizational reaction times to problems Con- firms beckon too standardized and lose flexibility to learn, to create new ideas and to solve new problems Conclusion - SOP is best used fort routine problems in stable emvironments

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Organization culture control: What are thec3 mechanisms of organizational culture control?

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Values, norms, socialization

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Behavior control: define organizational culture

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The set of internalized values, norms, standards of behavior and common expectations that control the ways in which individuals and groups in an organization interact with each other and work to achieve organizational goals

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Behavior control: Walk me through Schein's 3 levels of organizational culture.

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Series of assumptions a person makes about a organizational culture. 1)artefacts or surface manifestations of organizational culture -visible elements in a organizational culture ex. Dress code, slogan, logos, furniture etf 2) espoused values or beliefs -the stated rules and behavior of an organization. How members represent the organization to themselves and others. Ex. Mission and fission statements 3) basic assumptions -shared basic assumptions are deeply embedded, taken-for-granted behaviors which are usually unconscious, but constitute the essence of that organizations culture

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Behavior control: Define and apply clan control

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The control through the development of an internal system of values and norms. Both culture and clan control accept the norms and values as their own and then work within it. Ex. Work dress styles, normal working hours, pride taken in work, These methods provide control where output and behavioral control does not work. Strong culture and clan control help workers to focus on the organization and enhance its performance.

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Behavior control: define adaptive culture

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Strong and cohesive culture that controls employee attitudes and behaviors

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Behavior control: define inert culture

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Culture that leads to values and norms that fail to motivate or inspire employees

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What is the trade off for organizational change?

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Managers must balance the need for an organization to improve the way it currently operates with the need to respond to new unanticipated events.

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What are the 4 steps in the organizational change process?

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1. Assess the need for change 2. Decide on the change to make 3. Implement the change 4. Evaluate the change

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Define organizational learning

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Process through which managers try to increase members abilities to understand and appropriately respond to changing conditions

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What is top down change?

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Top managers identify what needs to be changed and move quickly to implement changes throughout the organization

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What is bottom up change?

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Managers at all levels work together to develop a detailed plan for change

MAN 401: Organization and Human Resourse Management 2 – Flashcards

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