Professional Documents
Culture Documents
STEPHEN P. ROBBINS
Chapter
18
2007 Prentice Hall, Inc.
All rights reserved.
MARY COULTER
Foundations
of Control
LEARNI NG O UTLI NE
Follow this Learning Outline as you read and study this chapter.
182
L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.
183
L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.
184
What Is Control?
Controlling
The process of monitoring activities to ensure that
they are being accomplished as planned and of
correcting any significant deviations.
185
Bureaucratic Control
Emphasizes organizational authority and relies on
rules, regulations, procedures, and policies.
Clan Control
Regulates behavior by shared values, norms,
traditions, rituals, and beliefs of the firms culture.
2007 Prentice Hall, Inc. All rights
reserved.
186
Exhibit 181
Type of Control
Characteristics
Market
Bureaucratic
Clan
187
188
Exhibit 182
189
1810
Exhibit 183
1811
Control Criteria
(What)
Employees
Statistical reports
Satisfaction
Oral reports
Turnover
Written reports
Absenteeism
Budgets
Costs
Output
Sales
1812
Exhibit 184
1813
Comparing
Determining the degree of variation between
actual performance and the standard.
Significance of variation is determined by:
The
The
1814
Exhibit 185
1815
Exhibit 186
1816
at once.
Basic
Corrective Actions
1817
1818
Exhibit 187
1819
What Is Organizational
Performance?
The accumulated end results of all of the
organizations work processes and activities
Designing
activities.
Coordinating
1820
sales revenues
Inputs:
1821
process model
1822
Corporate Culture
Audits
Compensation and
benefits surveys
Customer satisfaction
surveys
1823
1824
Concurrent Control
A control that takes place while the monitored activity
is in progress.
Direct supervision: management by walking
around.
2007 Prentice Hall, Inc. All rights
reserved.
1825
Exhibit 189
Types of Control
1826
Enhance
1827
Liquidity
Leverage
Activity
Profitability
Other Measures
Economic Value Added
(EVA)
Market Value Added
(MVA)
Budget Analysis
Quantitative standards
Deviations
1828
1829
1830
1831
If
1832
processes
People/innovation/growth
assets
1833
Information Controls
Purposes of Information Controls
As a tool to help managers control other
organizational activities.
Managers
1834
Information Controls
Management Information Systems (MIS)
A system used to provide management with needed
information on a regular basis.
Data:
Information:
1835
Benchmarking
Is the search for the best practices among
competitors or noncompetitors that lead to their
superior performance.
Is a control tool for identifying and measuring specific
performance gaps and areas for improvement.
1836
1837
1838
1839
Exhibit 1812
Types of Workplace
Monitoring by
Employers
1840
1841
42%
29%
23%
14%
10%
Struck a co-worker
2%
1842
1843
1844
Source: Adapted and reprinted by permission of Harvard Business Review. An exhibit from Putting the Service Profit Chain to Work, by J. L. Heskett,
T. O. Jones, G. W. Loveman, W. E. Sasser, Jr., and L. A. Schlesinger. MarchApril 1994: 166. Copyright (c) by the President and Fellows of Harvard
College. All rights reserved. See also J. L. Heskett, W. E. Sasser, and L. A. Schlesinger, The Service Profit Chain (New York: Free Press, 1997).
1845
Increased
1846
Terms to Know
controlling
market control
bureaucratic control
clan control
control process
range of variation
immediate corrective
action
basic corrective action
performance
organizational
performance
2007 Prentice Hall, Inc. All rights
reserved.
productivity
organizational
effectiveness
feedforward control
concurrent control
management by walking
around
feedback control
economic value added
(EVA)
market value added
(MVA)
1847
1848