Management Review – Controls and Control Systems
“Let’s see what’s happening”
-Clan (Social) Control
-Conduct business w/ someone not very often, not long-term relationships
-In situations when people tend to know each other, they help each other out (sense of trust within each other).
-Mechanism: social approval/disapproval
Each Control System appropriateness depends upon 2 factors. What are these 2 factors?
-Length of Transaction(s)
-At even higher levels of complexity/uncertainty, bureaucratic control fails, then move to social control
-Participation in planning work and having a sense of purpose facilitate motivation
-Output standards measure results in terms of quantity, quality, cost or time
-Input standards measure the work efforts that go into the performance task
Ex: “What do you want to do? I want to do well on the exam.”
-Accurate and timely measurement
Ex: “How did I do on the exam?”
– Actual Performance
=Need for Action
Ex: “How did I do/what did I do compared to what I wanted to do.”
-Management by exception is the practice of giving attention to situations that show the greatest need.
Ex: How can I improve/what can I do to improve?
-Ensure the right directions are set and the right resource inputs are available
-Solve problems before they occur
-Ensure the right things are being done as part of work-flow operations
-Solve problems while they are occurring
-Ensure that final results are up to desired standards
-Solve problems after they occur
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