CHAPTER 16 CONTROLLING THE ORGANISATION © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Lecture outline Control as a management function The control process Types of control Managerial approaches to control Assessing control systems © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Control as a management function Controlling: Process of regulating organisational activities so that actual performance conforms to expected organisational standards and goals. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Control as a management function Role of controls: Coping with uncertainty Detecting irregularities Identifying opportunities Handling complex situations © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Control as a management function Levels of control Strategic planning Strategic control Tactical planning Tactical control Operational planning Operational control © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

The control process Steps in the control process: Control process Determine areas to control Control process steps Establish standards Measure performance Compare performance Recognise positive performance Take corrective action Adjust standards © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

The control process Deciding what to control: Determining strategic points High dependence on the resource Chance that expected resource flow will be unacceptable Control-process feasibility Cost acceptability Alternatives to control Change dependence relationships Change nature of dependence relationships © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Types of control Types of control: Major types by timing Multiple controls Cybernetic & non-cybernetic controls © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Types of control Types by timing: Input Transformation processes Outputs Feed-forward control. Anticipating problems Concurrent control. Attending to problems as they occur Feedback control. Correcting problems after product/ service is produced © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Types of control Multiple controls Cybernetic Non-cybernetic Systems using two or more of the feedforward, concurrent and feedback control processes and involving several strategic control points. Cybernetic Self-regulating control system which, once operating, can automatically monitor the situation and take corrective action when necessary. Non-cybernetic Control system relying on human discretion as a basic part of its process. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Managerial approaches Bureaucratic control Clan control Market control Control & innovation © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Managerial approaches Bureaucratic control: Managerial approach relying on regulation through rules, policies, supervision, budgets, schedules, reward systems and other administrative mechanisms aimed at ensuring employees exhibit appropriate behaviours and meet performance standards. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Managerial approaches Clan control: Managerial approach relying on values, beliefs, traditions, corporate culture, shared norms and informal relationships to regulate employee behaviours and facilitate reaching of organisational goals. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Managerial approaches Market control: Managerial approach relying on market mechanisms to regulate prices for certain clearly specified goods and services needed by an organisation. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Managerial approaches Control & innovation: Four levers for strategic control/innovation— Belief systems Mission, core values Boundary systems Risk avoidance, policies, rules, procedures Performance management systems Critical goals, evaluation & feedback Interactive monitoring systems Opportunity focus, networking, continuous search & learning © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Assessing control systems Behavioural displacement ‘behaviour encouraged inconsistent with organisational goals’ Operating delays ‘actions needed by feedforward & concurrent controls’ Game playing ‘managers improve their standing …by manipulating resource usage &/or data’ Negative attitudes Induced by excessive & poorly designed controls © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Assessing control systems Over-control versus under-control: Over-control ‘limiting individual job autonomy to the point where it seriously inhibits job performance’. Under-control ‘...giving autonomy to an employee to where the organisation loses the ability to direct efforts’. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Assessing control systems Characteristics of effective control systems Future oriented Multi-dimensional Cost-effective Accurate Realistic Timely Monitorable Acceptable to organisational members Flexible © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Lecture summary Control as a management function The control process Significance of the control process Role of controls levels of control The control process Steps in the process Strategic control points Types of control Types by timing, multiple, cybernetic, non-cybernetic © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Lecture summary Managerial approaches to control Bureaucratic, clan, market Control & innovation Assessing control systems Dysfunctions Over-control/under-control Characteristics of effective control systems © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.