1. Chapter 16 – Controlling the Organization
Lecture # 21
Chapter 16 – Controlling the Organization

2. Control as a Management Function
Controlling: process of regulating organizational activities so actual performance conforms to expected organizational standards and goals.
Control System: Set of mechanisms designed to increase probability of meeting organizational standards and goals.

3. Significance of the Control Process
Controlling function is related to the other 3 management functions: planning, organizing and leading.
It builds on the planning function by allowing monitoring and adjusting performance so plans can be reached.
It also supports organizing and leading functions by ensuring resources are used for organizational objectives.

4. Role of Control
Control can help managers avoid the following problems:
Coping with uncertainty (customer demand, technology and raw material availability).
Detecting irregularities (poor quality, cost overruns or staff turnover).
Identifying opportunities
Handling complex situations
Decentralizing authority

5. Levels of Control
Strategic control: managers monitor critical environmental factors which could affect viability of strategic plans, assessing effects of organizational strategic actions, and ensuring strategic plans are implemented.
Tactical control: this focuses on assessing implementation of tactical plans at department levels, monitoring and taking corrective actions.

6. Operational control: it helps in overseeing implementation of operating plans, monitoring day to day results, and taking corrective actions as required.

7. The Control Process Determine areas to control
Establish standards (goal incongruence)
Measure performance
Compare performance against standards (management by exception)
5. A Recognize positive performance
5. B Take corrective actions as necessary
6. Adjust standards and measures as necessary

8. 4 Conditions for Control
First two conditions refer to whether controls are needed or not, and second two assess whether control is feasible and practical.
High dependence on the resource
Strong chance expected resource flow will be unacceptable
Ensure the control process feasibility
Ensure cost acceptability

9. Types of Control
Feed forward: regulation of inputs to ensure they meet standards necessary for the transformation process.
Concurrent: regulation of ongoing activities which are part of the transformation process to ensure they conform to organizational standards.
Feedback: regulation exercised after a product or service has been completed to ensure the final output meets standards and goals.

10. Multiple controls
Multiple control systems: systems using two or more of the feedforward, concurrent and feedback control processes and involving several strategic control points.
Strategic control points: performance areas chosen for control because they are important in meeting organizational goals.

11. Cybernetic & Non-cybernetic
Cybernetic control system: self-regulating control system which, once operating, can automatically monitor the situation and take corrective actions when necessary.
Non-cybernetic control system: control system relying on human discretion as a basic part of its process.

12. Managerial Approaches to Implementing Control
Bureaucratic control: approach relying on regulation through rules, policies, supervision, budgets, schedules, reward system, and other administrative mechanisms aimed at ensuring employees exhibit appropriate behaviors and meet performance standards. (table 16.1)
Clan control: managerial approach relying on values, beliefs, traditions, corporate culture, shared norms, and informal relationships to regulate employee behaviors and facilitate reaching of organizational goals.

13. Market control: approach relying on market mechanisms to regulate prices for certain clearly specified goods and services needed by an organization.

14. Dysfunctional Aspects of Control Systems
Behavioral displacement: condition in which individuals engage in behaviors encouraged by controls and reward systems though they are inconsistent with organizational goals.
Game playing
Operating delays
Negative attitudes

15. Overcontrol Vs. Undercontrol
Over control: limiting individual job autonomy to the point where it seriously inhibits effective job performance.
Under control: granting autonomy to an employee to the point where the organization loses its ability to direct individual effort towards achieving.

16. Charactertics of an Effective Control System
Future oriented
Multi-dimensional
Cost effective
Accurate
Realistic
Timely
Monitorable
Acceptable to organization members
Flexible

17. Chapter 17 – Managing Organizations through Change & Conflict
Lecture # 22
Chapter 17 – Managing Organizations through Change & Conflict

18. The Change Cycle Performance gap Identify a desired future
Recognize need for change
Problem diagnosis
Development of alternatives
Selection of appropriate alternatives
Implementation
Evaluation against desired outcomes

19. Why Individuals resist change
Self interest
Misunderstanding and lack of trust
Differential assessment
Some individuals have low tolerance for change

20. Overcoming Resistance to Change
Education & communication
Participation & involvement
Facilitation & support
Negotiation & agreement
Manipulation & co-optation
Explicit & implicit coercion

21. Force-field analysis: it analyses two types of forces, driving and restraining forces, that influence any proposed change, then assessing how best to overcome resistance.
Driving forces: factors pressuring for a particular change.
Restraining forces: factors pressuring against a change.

22. Managing Conflict
Conflict: perceived difference between two or more parties resulting in mutual opposition.

23. Causes of Conflict Communication factors Structural factors Size
Participation
Line-staff distinctions
Reward systems
Resource interdependence
Task interdependence

24. Power
Personal behavior factors
Communication styles
Workforce diversity
Reward structures
Differences in perceptions
Increased demand for specialists

25. Reducing & Resolving Conflict
Changing situational factors
Appeal to superordinate goals
Use an interpersonal conflict-handling mode
Avoidance
Accommodation
Competition
Compromise
collaboration

26. Types of Intergroup Conflict
Functional conflict: confrontation between groups which enhances and benefits organizational performance.
Dysfunctional conflict: confrontation or interaction between groups that is harmful to the organizations or hindering goal achievement.