32 terms


Chapter 8
process where managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals
Control Systems
formal, target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organizations strategy and structure are working
A Good Control System Should...
-be flexible so managers can respond as needed
-provide accurate information about the organization
-provide information in a timely manner
Types of Control
control that allows managers to anticipate problems before they arise
Types of Control
give managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise
Types of Control
control that gives managers information about customers' reactions to goods and services so that corrective action can be taken if necessary
Four Steps to Organizational Control
1. establish the standards of performance, goals, or targets against which performance is to be evaluated
2. measure actual performance
3. compare actual performance against chosen standards of performance
4.evaluate the result and initiate corrective action if the standard is not being achieved
Output Control
financial measures of performance
organizational goals
operating budgets
Behavior Control
direct supervision
management by objectives
rules and standard operating procedures
Organizational Culture/Clan Control
Organizational Goals should be SMART
Operating Budget
a blueprint that states how managers intend to allocate and use the resources they control to attain organizational goals effectively and efficiently
Problems with Output Control
managers must create output standards that motivate at all levels
standards should not cause managers to behave in inappropriate ways to achieve organizational goals
Direct Supervision (Behavior Control)
managers who: actively monitor and observe the behavior of their subordinates
teach subordinates the behaviors that are appropriate and inappropriate
intervene to take corrective action as needed
Management by Objectives (MBO)
a goal setting process in which managers and subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate their attainment of those goals
Bureaucratic Control
control through a system of rules and standard operating procedures (SOP) that shapes the behavior of divisions, functions, and individuals
Problems with Bureaucratic Control
rules easier to make than discarding them, leading to bureaucratic "red tape" and slowing organizational reaction times to problems
firms become too standardized and lose flexibility to learn, to create new ideas and solve to new problems
Organizational Culture
the shared set of beliefs, expectations, values, norms, and work routine that influence how members of an organization interact with one another and work together to achieve organizational goals
Clan Control
control exerted on individuals and groups in an organization by shared values, norms, standards or behavior and expectations
Adaptive Culture
cultures whose values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be effective
Inert Culture
culture that leads to values and norms that fail to motivate or inspire employees
Organization Change
movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness
Why People Resist Change
Fear of losing something of value
Individual Resistance
Fear of the Unknown
Belief that change is not good for the organization
Reducing Resistance to Change
Education and Communication
Facilitation and Support
Manipulation and Co-optation
Steps in the Organizational Process
----Assess the Need for Change
recognize that there is a problem
identify the source of the problem
Steps in the Organizational Process
----Decide on the Change to Make
decide what the organization's ideal future state would be
identify obstacles to change
Steps in the Organizational Process
----Implement the Change
decide whether change will occur from the top down or from the bottom up

introduce and manage change
Steps in Organizational Process
----Evaluate the Change
compare prechange performance with postchange performance

use benchmarking
Organizational Learning
process through which managers try to increase organizational members' abilities to understand and appropriately respond to changing conditions
Top-Down Change
a fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do, and then move quickly to implement changes throughout the organization
Bottom-Up Change
a gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change
process of comparing one company's performance on specific dimensions with the performance of other high performance organizations