Diagnostic Skills Diagnostic skills enable a managerDiagnostic skills enable a manager –To visualize the most appropriate response to a situation. –To understand and predict cause-and- effect relationships. 6–2 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Understanding Control ControlControl –Is the regulation of organizational activities so that some targeted element of performance remains within acceptable limits. Benefits of ControlBenefits of Control –Provides organizations with indications of how well they are performing in relation to their goals. –Provides a mechanism for adjusting performance to keep organizations moving in the right direction. 6–3 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Areas of Control Physical Resources Human Resources Information Resources Financial Resources Areas of Control 6–4 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Levels of Control 6–5 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Responsibilities for Control ManagersManagers –Are responsible for overseeing the wide array of control systems and concerns in organizations. ControllerController –Is a staff member that helps line managers with their control activities. Operative EmployeesOperative Employees –Check the quality of their work and correct their own errors. 6–6 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Designing Control Systems Design and implementation of control systems requires:Design and implementation of control systems requires: –Careful diagnosis of the organizational, environmental, and operational context –An understanding of the specific steps in the control process –An understanding of the fundamental elements of operations control –An understanding of the characteristics of effective control 6–7 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Managing Control in Organizations 6–8 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Integration with planning Flexibility Accuracy Timeliness Characteristics of Effective Controls Objectivity

ControlControl Managing Control: Sources of Resistance to Control Inappropriate Focus Overcontrol Too Much Accountability Rewards for Inefficiency 6–9 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Overcoming Resistance to Control Resistance to control can be overcome by:Resistance to control can be overcome by: –Integrating and aligning controls with organizational planning, goals, and standards. –Creating flexible, accurate, timely, and objective controls. –Avoiding overcontrol. –Guarding against controls that reward inefficiencies. –Encouraging employee participation in the planning and implementing of control systems. –Developing checks and balances that verify the accuracy of performance indicators. 6–10 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Popular Motivational Strategies EmpowermentEmpowerment –Enabling workers to set their work goals, make decisions, and solve problems within their sphere of influence. ParticipationParticipation –Giving employees a voice in making decisions about their work. –Areas of participation for employees: Making decisions about their jobs.Making decisions about their jobs. Decisions about administrative mattersDecisions about administrative matters Participating in decision making about broader issues of product quality.Participating in decision making about broader issues of product quality. 6–11 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Reinforcement Perspectives on Motivation Reinforcement TheoryReinforcement Theory –Addresses the role of rewards as they cause behavior to change or remain the same over time. –Assumes that: Behavior that results in rewarding consequences is likely to be repeated.Behavior that results in rewarding consequences is likely to be repeated. Behavior that results in punishing consequences is less likely to be repeated.Behavior that results in punishing consequences is less likely to be repeated. 6–12 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Kinds of Reinforcement in Organizations 6–13 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Positive Reinforcement Avoidance Punishment Extinction Kinds of Reinforcement

Reinforcement Perspectives (cont’d) Fixed Interval Variable Interval Fixed Ratio Variable Ratio Reinforcement Schedules TimeFrequency 6–14 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Alternative Forms of Working Arrangements Variable Work Schedules Compressed work schedule Flexible work schedules (flextime) Job sharing Telecommuting 6–15 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Reward Systems and Performance Individual Incentive Rewards Systems Group and Team Incentive Rewards Systems Individual Merit Rewards Systems Types of Reward Systems 6–16 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.