1. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-30 Contemporary Issues in Control Cross-cultural Issues –The use of technology to increase direct corporate control of local operations –Legal constraints on corrective actions in foreign countries –Difficulty with the comparability of data collected from operations in different countries

2. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-31 Contemporary Issues in Control Workplace Concerns –Privacy versus monitoring: E-mail, telephone, computer, and Internet usage can all be monitored –Employee theft The unauthorized taking of company property by employees for their personal use –Violence Anger, rage, and violence in the workplace is affecting employee productivity

3. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-32 Exhibit 15.13 Types of Workplace Monitoring by Employers Internet use 54.7% Telephone use 44.0% Email messages 38.1% Computer files 30.8% Job performance using video cameras 14.6% Phone conversations 11.5% Voice-mail messages 6.8% Source: Based on S. McElvoy, “E-Mail and Internet Monitoring and the Workplace: Do Employees Have a Right to Privacy?” Communications and the Law, June 2002, p. 69.

4. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-33 Exhibit 15.14 Control Measures for Employee Theft or Fraud

5. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-34 Contemporary Issues in Control Customer Interactions –Service profit chain The service sequence from employees to customers to profit Service capability  service value  customer satisfaction  customer loyalty  repeat business (profit)

6. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-35 Exhibit 15.15 The Service Profit Chain Employees Loyalty Operating strategy and service delivery system Service conceptTarget market Service quality Service capability Productivity and output quality Satisfaction Service valueSatisfaction Customers Loyalty Outcomes Revenue growth Organization Profitability

7. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-36 Contemporary Issues in Control Corporate Governance –The system used to govern a corporation so that the interests of the corporate owners are protected Changes in the role of boards of directors Increased scrutiny of financial reporting

8. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-37 Summary and Implications What is control? –Process of monitoring activities to ensure that they are being accomplished as planned and correcting deviations What is the control process? –Measuring actual performance, comparing actual performance against a standard, taking managerial action to correct deficiencies When should controls be introduced? –Before activity begins, during activity and after

9. Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-38 Summary and Implications What methods of control do managers use? –Market, clan and bureaucratic How do financial and information controls help managers monitor performance? –Both can be used effectively What are some current issues in control? –Balanced scorecard, corporate governance, cross- cultural differences, workplace concerns, customer interactions