BEHAVIOR IN

ORGANIZATION

INTRODUCTION
Good management control
systems .

influence behavior in a goal

congruent manne

GOAL CONGRUENCE
Senior management wants the organization to attain the organizations

goals. But Individual members of the organization have their own

personal goals.
The purpose of a management control systems is to ensure a high level.

GOAL
CONGRUENCE
An adequate control system will at least not encourage individuals to

act against the best interest of the organization

Informal Factors That Influence

Goal Congruence
1. External Factors
external factors are norm of desirable behavior that exist in the
societyof which the organization is a part.
2. Internal Factors
.Culture
.Management style
. The informal Organization
.Perception and communication

The Formal Control System

The informal factors discussed above have a major
influence on the effectiveness of an organizations
management control. These systems can be classified
into two types :
1. The management control system
2. Rules

RULES
Same specific types of rules are listed below :
1. Physical Controls
2. Manuals
3. System Safeguards
4. Task Control Systems

FORMAL CONTROL PROCESS

A strategic plan implements the organizations goal and
strategies.
GAMBARRRR

TYPES Of ORGANIZATIONS
A firms strategy has a major influence on its structure.
The type of structure in turn, influence the design of the
organizations management control system. There three
structure categories :
1. A functional structure
2. A business unit structure
3. A matrix structure

FUNCTIONAL ORGANIZATION
An important advantage a functional structure is efficien.
There are several disadvantages to a functional structure:
a. In a functional organization there is no unambuguous way of
determining the effectiveness of the separate functional managers.
b. If the organization consists of managers in one function who report to
higher level managers in the same function, who, in turn, report to
still higher-level managers in that function, then a dispute between
managers of different functions can be resolved only at the top, even
though it may have originated at a much lower organization level.

next
c. Functional structure are inadequate for a firm with
diversified products and markets.

Business Unit
The business unit form of organization is designed to
solve problem inherent in the functional structure.
An advantage of the business unit form of organization
is

that

provides

management.

training

graound

in

general