MBAuningnrlManagemenBehavir.ppt

1、8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),1,Chapter 1,PMBA 2235 Accounting Control encourages, enables, or, sometimes “forces” employees to act in the organizations best interest. Management control includes all the devices / mechanisms managers use to ensure that the beh

2、avior of employees is consistent with the organizations objectives and strategies.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),5,Function and benefit .,Purpose / function . get done what management wants done; influence behavior in desirable ways. Benefit increased probabil

3、ity that the organizations objectives will be achieved.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),6,Management and its components,Management the process of organizing resources and directing activities for the purpose of organizational objectives. Process-breakdown Object

4、ive setting; Strategy formulation; Control.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),7,Objective setting .,Objectives are a necessary prerequisite for any purposeful activities. Without objectives, it is impossible to assess whether the employees actions are purposive; t

5、o make claims about an organizations success. Objectives can be financial versus non-financial; quantified, explicit versus implicit; economic, social, environmental, societal.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),8,Strategy formulation .,An organization must select

6、any of innumerableways of seeking to attain its objectives. Strategies define how organizations shoulduse their resources to meet their objectives. Hence, strategies put constraints on employees to focus activities on what the organization does best or areas where it has an advantage over competitor

7、s.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),9,Control .,Strategic control Is our strategy (still) valid? Strategy revision - “intended” vs. “emergent” strategies. Management Control Are our employees likely to behave appropriately? Do they understand what we expect of th

8、em? Will they work consistently hard and try to do whatis expected of them? Are they capable of doing what is expected of them?,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),10,Planning and control,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),11,The p

9、lanning / control cycle,Strategy Formulation,Strategy Implementation,Goals,Objective Setting,Strategic Control,Management Control,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),12,The basic control problem,Management control is about encouragingPEOPLE to take desirable actions

10、, i.e., it guards against the possibilities that employees willdo something the organization does not want them to do,or, fail to do something they should do. Hence, management control has a . BEHAVIORAL ORIENTATION ! If all personnel could always be relied on to do what is best for the organization

11、, there would be no need for a management control system.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),13,Recall that .,Management Control is about taking steps to help ensure that the employees do what is best for the organization. Three issues: Do they understand what we e

12、xpect of them . Lack of direction Will they work consistently hard and try to do whatis expected of them . Lack of motivation Are they capable of doing what is expected of them . Personal limitations,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),14,Lack of direction .,Employe

13、es do not know what the organization wants from them. When this lack of direction occurs, the likelihood of the desired behaviors occurring is obviously small. COMMUNICATION + REINFORCEMENT !,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),15,Motivational problems .,When employ

14、ees choose not to perform astheir organization would have them perform. Because Lack of goal congruence Individual goals do not coincide with organizational goals. Self-interested behavior Generally, individuals are prone to being “lazy” . e.g., take long lunches, overspend on things that makelife m

15、ore pleasant, use of sick leaves when not sick, etc. More extreme examples of motivational problems: Employee crime (fraud and theft).,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),16,Personal limitations ,Sometimes, people are “unable” to do a good job because of certain per

16、sonal limitations they have. Some examples / causes: lack of requisite knowledge, training, experience; employees are promoted above their level of competence; some jobs are not designed properly; etc. TRAININGJOB ASSIGNMENT / PROMOTION JOB DESIGN,8/29/2020,A.H. Lau (some slides taken from Pearson E

17、ducation Limited),17,Management control is more than ,A simple cybernetic control system involving a single feedback loop, like a thermostat Detector measure performance; Assessor compare with pre-set standard; Effector take corrective action. Many controls dont focus on measured performance . e.g.,

18、 direct supervision, employee hiring standards, codes of conduct.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),18,Management control is more than ,Many controls are proactive rather than reactive i.e., they are designed to prevent control problems before the organization suf

19、fers any adverse effects on performance.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),19,Control.,Again, management controls include all the devices managers use to ensure that the behaviors and decisions of people are consistent with the organizations objectives and strateg

20、ies.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),20,Control and “good” control .,“GOOD CONTROL” is said to take place when there is a “high” probability that the firms objectives will be achieved; a “low” probability that major unpleasant surprises will occur. Therefore, co

21、ntrols must be:,Future-oriented Objectives-driven Economically desirable,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),21,Control can be achieved through,Control Problem Avoidance Management Control Systems Action Controls; Results Controls; People Controls.,8/29/2020,A.H. La

22、u (some slides taken from Pearson Education Limited),22,Four Control-problem avoidance Strategies,Activity elimination e.g., subcontracts, licensing agreements, divestment. Automation Computers / robots eliminate the human problemsof inaccuracy, inconsistency, and lack of motivation; Only applicable

23、 to relatively easy decision situations; Automation can be very costly.,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),23,Four Control-problem avoidance Strategies,Centralization Superiors reserve for themselves the most critical decisions. Risk Sharing With outside entities t

24、o minimize the losses resulting from inappropriate employee behaviors through contract or joint venture agreement,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),24,Control alternatives ,Controls can focus on: the actions taken the results produced the types of peopleemployed and theirshared values andnorms.,Or any combination of those .,8/29/2020,A.H. Lau (some slides taken from Pearson Education Limited),25,Dependin