Management Control Alternatives

and Their Effects

Chapter II

“Results Control”

The example of result control is giving the employee the rewards by their
performance, the rewards can be such as the payment for performance (monetary
compensation), and also includes job security, promotions,autonomy and recognition.

Results Control create Meritocracies, whereas the rewards are given to the most
talented and hardest working employees. And then by the meritocracies, the employee will be
motivated to increase their performance to the company and can be the alternative ways for
the employee dicover and develop their talents in order to reach the company desired results.

a) Prevalence of Result Controls

Result control used to control the employee behaviors.

Result controls also consist with, and even necessary for the implementation of
decentralized forms of organization. Thus, Decentralization can affect to the manager
performances, whereas they have to make a decision as well and also to implemanted.
Managers have to more responsible to their devision.

Results control can also be emphasized down to the lowest levels in the organization
to give more power and responsibility to their job.To implementanting the results control,
Franchising is another approach to do. The rewards motivate the franchisees to be
hardworking, efficient, responsive to customers, etc,.

b) Result Controls and The Control Problems

 Results controls is effective in addressing motivational problems, because it
can induce employees to maximize their chances of producing the results.
 Results controls can address personal limitation problems, because it promise
high rewards for good performers so the employee can adress their limitations
and develop their talents.
c) Element of Result Controls
There are 4 steps for implement the result controls :
 Defining Performance Dimensions
 Measuring Performance
 Setting performance target
 Providing Rewards
d) Conditions Determining The Effectiveness of Result Controls
There are several things that important to get the effectiveness of result control :
 Knowledge of desired result
 Ability to influence desired results (controllability)
 Ability to measure controllable results effectively (Precise, Objective, Timely,
and Understandable)
 Management Control Alternatives
and Their Effects

Chapter III

“Action, Personnel, and Cultural Controls”

1. Action Control
Is the most direct form of managemenr control because involve taking steps to ensure
the employees act in the organization.
Basic forms to action control :
 Behavioral Constraints
Physical Constraint and Administrative Constraint
 Preaction reviews
Take place during planning and budgeting process
 Action accountability
Defining the actionsare acceptable or unacceptable, communicating those
definitions to employees, observing or otherwise tracking what happens, and
reawarding good actions or punishing actions that deviate from the acceptable.
 Redudancy
Common in computer facilities, security function,and other critical operations.

2. Action Controls and The Control Problems

- Behavioral Contraint : effective in eliminating motivational problem
- Preaction reviews : mitigate the potentially costly effects of personal limitations
- Action Accountability : adress all of the control problem
- Redudancy : effective in helping accomplish a particular task

3. Prevention Versus Detection

Detection can be effective if made in timely manner and if detection results in
a cessationof the behaviorand the correction of the effects of the harmful actions.
 Most actions control are aimed at Preventing undesirable behaviors.The
exception is action accountabilitycontrols. Although it is designedto motivate
employees to behave appropriately, it cannot be verified.

4. Condition Determining the Effectiveness of Actions Controls

 Knowledge of desired actions
 Ability to ensure that desired actions are taken
(Precision, Objectivity, Timeliness, and Understandable)

5. Personnel Controls
There are 3 major methods of implementing the personnal controls :
 Selection and placement of employee
 Training
 Job design and provission of necessary resouces

6. Cultural Control
Designed to encourage mutual monitoring, a powerful form of group pressure
on individuals who deviate from group norms and values.
Managers attemp to create and shape organizational culturesin many ways, such as :
- Codes of Conduct
- Group Rewards
- Other approaches (Intraorganizational transfers or employee rotation, physical
arrangement, etc., )

7. Effectiveness of Personel / Cultural Controls

Personal and Cultural Controls are adaptable. Cultural controls often have the
advantage of being relatively unobstrusive. Personnel control have the important
advantages over result and action controls.
But, the degree to which personnel/cultural controls are effective can
varysignificant across individuals, groups, and societies. Some people are more
honest than others, and some groups and societies have stronge emotional ties among
their members.