HOFAM vak Organisatie & Management les 12

Het vier-instrumentenmodel van managementcontrol 2

Organizational Control 3 The systematic process through which managers regulate organizational activities to make them consistent with expectations established in ● Plans ● Targets ● Standards of performance

Organizational Control 4 To effectively control an organization, managers need to decide What information is essential How will they obtain that information How they can and should respond to it

5 Feedback Control Model

Control Philosophies 6 Hierarchical control influencing employee behavior and assess performance through rules Policies hierarchy of authority reward systems other formal devices Decentralized control relies on organizational culture group norms focus on goals rather than rules and procedures

Hierarchical and Decentralized Methods of Control 7 Hierarchical ControlDecentralized Control Basic Assumptions People are incapable of self-discipline and cannot be trusted. They need to be monitored and controlled closely. People work best when they are fully committed to the organization ActionsUses detailed rules and procedures; formal control systems. Uses top-down authority, formal hierarchy, position power, quality control inspectors. Relies on task-related job descriptions. Emphasizes extrinsic rewards (pay, benefits, status). Features rigid organizational culture; distrust of cultural norms as means of control. Features limited use of rules; relies on values, group and self-control, selection, and socialization. Relies on flexible authority, flat structure, expert power; everyone monitors quality. Relies on result-based job descriptions; emphasizes goals to be achieved. Emphasizes extrinsic and intrinsic rewards (meaningful work, opportunities for growth). Features adaptive culture; culture recognized as means for uniting individuals, team, and organizational goals for overall control. ConsequencesEmployees follow instructions and do just what they are told. Employees feel a sense of indifference toward work. Employees absenteeism and turnover is high. Employees take initiative and seek responsibility. Employees are actively engaged and committed to their work. Employee turnover is low

Individualism Approach 8 ● Acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good ● Individual self-direction paramount ● Individualism is believed to lead to honesty & integrity since that works best in the long run ●However, top executives from WorldCom, Enron, Tyco demonstrate flaws of approach

Moral-Rights Approach 9 −Moral decisions are those that best maintain the rights of those people affected by them. −An ethical decision is one that avoids interfering with the fundamental rights of others.

Justice Approach 10 −Moral decisions must be based on standards of equity, fairness and impartiality. −Three types of justice are of concern to managers: Distributive justice Procedural justice Compensatory justice

Corporate Social Responsibility 11 −Organization’s obligation to make decisions and take actions that will enhance the welfare and interests of society and organization −Being a good corporate citizen −Difficulty in understanding – issues can be ambiguous with respect to right and wrong

Organizational Stakeholders 12 −Any group within or outside the organization that has a stake in the organization’s performance −Each stakeholder Has a different criterion of responsiveness Has a different interest in the company −Monsanto

Criteria of Corporate Social Responsibility 13

The Ethical Organization 14

Het vier-instrumentenmodel van managementcontrol 15

Organizational Control −The systematic process through which managers regulate organizational activities to make them consistent with expectations established in ●Plans ●Targets ●Standards of performance 16

Organizational Control −To effectively control an organization, managers need to decide −What information is essential −How will they obtain that information −How they can and should respond to it 17