1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.