Bài giảng Management: A Pacific Rim Focus - Chapter 16 Controlling the organisation

CHAPTER 16CONTROLLING THE ORGANISATION1© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Lecture outlineControl as a management functionThe control processTypes of controlManagerial approaches to controlAssessing control systems2© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Control as a management function Controlling: Process of regulating organisational activities so that actual performance conforms to expected organisational standards and goals.3© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Control as a management functionRole of controls:Coping with uncertaintyDetecting irregularitiesIdentifying opportunitiesHandling complex situations4© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Control as a management functionLevels of controlStrategic planningStrategic controlTactical planningTactical controlOperational planningOperational control5© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.The control processSteps in the control process:Determine areas to controlEstablish standardsMeasure performanceCompare performanceRecognise positive performanceControl processstepsTake corrective actionAdjust standards6© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.The control processDeciding what to control:High dependence on the resourceChance that expected resource flow will be unacceptableControl-process feasibilityCost acceptabilityDetermining strategic control pointsAlternatives to controlChange dependence relationshipsChange nature of dependence relationships7© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Types of controlTypes of control:Major types by timingMultiple controlsCybernetic & non-cybernetic controls8© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Types of controlTypes by timing:InputTransformationprocessesOutputsFeed-forwardcontrol.AnticipatingproblemsConcurrentcontrol.Attending toproblems asthey occurFeedbackcontrol.Correctingproblems afterproduct/ serviceis produced9© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Types of controlMultiple controls 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.10© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Managerial approachesBureaucratic controlClan controlMarket controlControl & innovation11© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Managerial approachesBureaucratic 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.12© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Managerial approachesClan 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.13© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Managerial approachesMarket control: Managerial approach relying on market mechanisms to regulate prices for certain clearly specified goods and services needed by an organisation.14© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Managerial approachesControl & innovation:Four levers for strategic control/innovation—Belief systems Mission, core valuesBoundary systems Risk avoidance, policies, rules, proceduresPerformance management systems Critical goals, evaluation & feedbackInteractive monitoring systems Opportunity focus, networking, continuous search & learning15© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Assessing control systemsNegative attitudesInduced by excessive & poorly designed controlsOperating delays‘actions needed byfeedforward &concurrent controls’Game playing‘managers improve their standing by manipulating resource usage &/or data’Behavioural displacement‘behaviour encouraged inconsistent with organisational goals’16© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Assessing control systemsOver-control versus under-control:Over-control ‘limiting individual job autonomyto 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’.17© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Assessing control systemsCharacteristics of effective control systemsFuture orientedMulti-dimensionalCost-effectiveAccurateRealisticTimely MonitorableAcceptable to organisational membersFlexible18© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Lecture summaryControl as a management function Significance of the control process Role of controls levels of controlThe control process Steps in the process Strategic control pointsTypes of control Types by timing, multiple, cybernetic, non-cybernetic19© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Lecture summaryManagerial approaches to control Bureaucratic, clan, market Control & innovationAssessing control systems Dysfunctions Over-control/under-control Characteristics of effective control systems20© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.