METHODS OF CONTROL

There are different ways in which managers can regulate the activities of individuals and units
so that they are consistent with organization goals and standards. Today we’ll discuss five main
ways of achieving control: personal controls, bureaucratic controls, output controls, cultural
controls and control through incentives.

1. Personal Controls

Personal control is control by personal contact with and direct supervision of subordinates.
Personal control consists of making sure through personal inspection and direct supervision
that individuals and units behave in a way that is consistent with the goals of the organization.
Personal control can be very subjective, with the manager assessing how well subordinates are
performing by observing and interpreting their behavior. Personal control tends to be found
primarily in small firms where the activities of a few people might be regulated through direct
oversight.

However, there are a number of limitations in using personal controls. One is excessive
supervision may demotivate employees. They may resent being closely supervised and may
perform better with a greater degree of personal freedom.

Moreover, the subjective nature of personal control can create a lack of objectivity and
procedural justice in the performance review process. Subordinates may feel that favoritism,
personal likes and dislikes, and individual idiosyncrasies are as important in performance
reviews as actual performance. Personal control is also costly in that managers must devote
considerable time and attention to direct supervision of subordinates, which takes their
attention away from other important issues. The real problem with personal control, however,
is that it starts to break down as an organization grows in size and complexity.

BUREAUCRATIC CONTROLS
The concept of bureaucratic management was first introduced by Max Weber. This method of
control uses hierarchical management systems and extensive division of labor into specialized
tasks.
Weber saw control within a bureaucracy as being achieved by impersonal written rules and
standardized procedures. Advancement within such organizations, according to Weber, was
based on the ability of an individual to perform well against predetermined standards. Basically,
it is defined as control through a formal system of written rules and procedures. Bureaucratic
control methods rely primarily on prescribing what employees can and cannot do.

However, too great a reliance on bureaucratic rules can lead to problems. Excessively formal
rules and procedures can be stifling, limiting the ability of individuals and units to respond in
flexible way to specific circumstances. This can sour performance and lessen the motivation of
those who value individual freedom and initiative. Excessive bureaucratic measures do not
apply to a company that is rapidly evolving and employees who value freedom and initiative.

OUTPUT CONTROLS
Focuses on measurable results within an organization. Examples: the number of vehicles a car
salesperson sells per month; number of diapers sold per week. Employers must decide what
level of performance is acceptable, communicate expectations to the employees, track whether
performance meets expectations, and then make any needed changes.

Senior managers need to look behind the numbers to make sure unit managers are achieving
goals in a way that is consistent with the values of the organization. Second, as also noted
earlier, managers need to choose the right output criteria to measure.
Third, output controls do not always work well if there are extensive interdependencies
between units. 
CULTURAL CONTROL

Organizational culture consists of the values and assumptions that are shared among
employees of an organization. It is the collection of traits that make a company what it is.
Cultural control involves regulating behavior by socializing employees so that they internalize
the values of the organization and act in a manner that is consistent with them. When this
occurs, employees tend to engage in self-control —they regulate their own behavior so that it is
congruent with organizational goals.

Microsoft, for example, has a very strong culture that was set by the company’s founder, Bill
Gates. Gates always placed a high value on technical brilliance, competitiveness, and a
willingness to work long hours, something that he himself did (as did Steve Ballmer, the current
CEO). Gates and Ballmer hired people who shared these characteristics and then led by
example.
As a result, today Microsoft remains a company where technical brilliance and competitiveness
are highly valued and where people work long hours—not because any bureaucratic rules tell
them to do so, and not because supervisors explicitly require them to do so, but because new
employees are socialized into these norms by their coworkers, who themselves were thus
socialized in the past.

The downside of this type of control is if you want to change the cultural control, it’s very hard
because culture in an organization is so deep and encompasses different generations of
employees, making it really difficult to change.

CONTROL THROUGH INCENTIVES

Incentives are devices used to encourage and reward appropriate employee behavior. Many
employees receive incentives in the form of bonus pays. An example of this is the PBB for those
working in the government. Other types of incentives include promotion, scholarship grants,
etc.

The weakness of this system is that it is prone to abuse because some senior managers may set
standards that are too easy to achieve and do not really have an impact on the company’s
efforts to achieve its goals.

Motivation is directed by incentive. If there is no incentive, then there is little or no motivation.

DEVELOPING PERFORMANCE STANDARDS

Performance standards are guidelines the employers give to their employees to outline what
the company expects of them as a part of its team. They explain job duties and responsibilities
and to what quality the employee should complete them. Employers may also use performance
standards to help evaluate team members. Performance standards should treat all employees
equally and should be objective, specific, measurable, realistic and stated clearly in writing. 

Now, there are three most common levels of performance standards and these are:

 Strategic: This level refers to goals on the organizational, or company, level. Strategic

standards should align with the company's vision, objectives and values.
 Operational: This level of performance management emphasizes how departmental
activities work to achieve the company's goals. Employers may make performance
standards that apply to the company's departments.
 Individual: This level focuses on the individual employee to ensure that all employees
are performing their tasks well. Individual standards evaluate employees' work and seek
to improve the quality of their performances.

Why are Performance Standards important?

Performance standards are important because they provide employees with a framework of
how the company expects them to work. This allows for open communication between the
employer and the employee, which can help the employee understand their responsibilities. It
also explains how employees can meet these goals. For example, in the first part of our IPPMS
(Integrated Personnel Performance Management System), we have the Performance Planning
and Commitment. This is when the success indicators are determined by the management and
we are coached or asked to sign our IPCR (Individual Performance Commitment and Review)
Form to acknowledge that we understand how our performance is going to be rated or
evaluated for a certain grading period.

FORMULATING PERF STDS

In making your performance standards, there are three common general measures used to
gauge employee performance, namely:
  Quality addresses how well the work is performed and/or how accurate or how
effective the final product is. Quality refers to accuracy, appearance, usefulness,
or effectiveness.
 Quantity addresses how much work is produced. When a quality or quantity
standard is set, the Fully Successful standard should be high enough to be
challenging but not so high that it is not really achievable.
 Timeliness addresses how quickly, when or by what date the work is produced.
The most common error made in setting timeliness standards is to allow no
margin for error. As with other standards, timeliness standards should be set
realistically in view of other performance requirements and needs of the
organization.

EXAMPLE OF IPCR