McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Eleven Organizational Control and Change

11-2 Organizational Control  Organizational Control ≈ Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals

11-3 Control Systems  Control Systems ≈ Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively.

11-4 Control Process Steps Figure 11.2

11-5 Output Control  Operating Budgets ≈ Blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently.

11-6 Behavior Control  Direct supervision ≈ Managers who actively monitor and observe the behavior of their subordinates ≈ Teach subordinates appropriate behaviors ≈ Intervene to take corrective action ≈ Most immediate and potent form of behavioral control ≈ Can be an effective way of motivating employees

11-7 Management by Objectives  Management by Objectives (MBO) ≈ formal system of evaluating subordinates for their ability to achieve specific organizational goals or performance standards and to meet operating budgets

11-8 Bureaucratic Control  Bureaucratic Control ≈ Control through a system of rules and standard operating procedures (SOPs) that shapes and regulates the behavior of divisions, functions, and individuals.

11-9 Organizational Change  Organizational change ≈ Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness

11-10 Lewin’s Force-Field Theory of Change Figure 11.6

11-11 Steps in the Organizational Change Process Figure 11.7

11-12 Evaluating the Change  Benchmarking ≈ The process of comparing one company’s performance on specific dimensions with the performance of other, high-performing organizations.

McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Twelve Human Resource Management

11-14 Strategic Human Resource Management  Human Resource Management (HRM) ≈ Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.

11-15 The Legal Environment of HRM  Equal Employment Opportunity (EEO) ≈ The equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities. ≈ Equal Employment Opportunity Commission (EEOC) enforces employment laws.

11-16 Recruitment and Selection  Recruitment ≈ Activities that managers engage in to develop a pool of candidates for open positions.  Selection ≈ The process that managers use to determine the relative qualifications of job applicants and their potential for performing well in a particular job.

11-17 Job Analysis  Job Analysis ≈ Identifying the tasks, duties and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job. ≈ Should be done for each job in the organization.

11-18 Training and Development  Training ≈ Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers.  Development ≈ Building the knowledge and skills of organizational members to enable them to take on new responsibilities and challenges.

11-19 Performance Appraisal and Feedback  Performance Appraisal ≈ The evaluation of employees’ job performance and contributions to their organization. ≈ Traits, behaviors, results

11-20 Effective Performance Feedback  Formal appraisals ≈ An appraisal conducted at a set time during the year and based on performance dimensions that were specified in advance  Informal appraisals ≈ An unscheduled appraisal of ongoing progress and areas for improvement

11-21 Pay and Benefits  Pay level ≈ The relative position of an organization’s incentives in comparison with those of other firms in the same industry employing similar kinds of workers

11-22 Unions  Unions ≈ Represent worker’s interests to management in organizations. ≈ The power that a manager has over an individual worker causes workers to join together in unions to try to prevent this.