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1、 Chapter 12 ControlWhat is control?Three approaches to control systemsThe control processTypes of controlQualities of an effective control systemContingency factors of control1Control is the process of monitoring activities to ensure that they are being accomplished as planned and correcting any sig
2、nificant deviations.2Market control is an approach to control that emphasizes the use of external market mechanisms such as price competition and market share.Bureaucratic control is an approach to control that emphasizes authority and relies on administrative rules, regulations, procedures, and pol
3、icies.Clan control is an approach to designing control systems in which employee behaviors are regulated by the shared values, norms, traditions, rituals, beliefs, and other aspects of the organizations culture. 3Exhibit 12-1 the Control Process Objectives Standard MeasureactualperformanceCompareact
4、ualperformancewith standardIs standardbeing attained?Is varianceacceptable?Is standardacceptable?RevisestandardDonothingDonothingIdentifycause of variationCorrectperformanceNoNoNoYes Yes Yes 4Three Steps:Measuring actual performanceComparing actual performance against a standardTaking managerial act
5、ion to correct deviations or inadequate standards.5How do managers measure?(means)Personal observationStatistical reportsOral reportWritten report6What do manager measure?(content)Control areas: information, operations, finances, peopleQuantifiable criteriaSubjective measure7Exhibit 12-2 defining an
6、 acceptable range of variationAcceptableupper limitAcceptablelower limitStandard Acceptablerange ofvariation tt+1t+2t+3t+4t+58Do nothingCorrect the actual performance Immediate corrective action Basic corrective actionRevise the standard9Exhibit 12-3 Types of Control Input Processes Output Feedforwa
7、rdcontrolAnticipatesproblemsConcurrentcontrolCorrects problems as they happenFeedbackControlCorrects problemsafter they occur10Qualities of an effective control systemAccuracyTimelinessEconomyFlexibilityUnderstandabilityReasonable criteriaStrategic placementEmphasis on the exceptionMultiple criteria
8、Corrective action11Exhibit 12-4 Contingency FactorsOrganization size Small Large Informal, personal, management by walking aroundFormal, impersonal, extensive rules and regulationPosition and levelHigh Low Many criteriaFew, easy-to-measure criteriaHighDegree of decentralizationLowIncreased number and breath of controlsReduced number of controlOrganizational cultureOpen and supportiveThreatening Informal, self-controlFormal, externally imposed controlsImportance of an activityHighLowElaborate, comprehensive controlsLoose, informal controls12Practi
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