Because learning changes everything.
Chapter 8
Control
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Learning Objectives
1. Define organizational control, and explain how it increases
organizational effectiveness.
2. Describe the four steps in the control process and the way it
operates over time.
3. Identify the main output controls, and discuss their advantages
and disadvantages as means of coordinating and motivating
employees.
4. Identify the main behavior controls, and discuss their
advantages and disadvantages as means of coordinating and
motivating employees.
5. Discuss the relationship between organizational control and
change, and explain why managing change is a vital
management task.
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A Manager’s Challenge
How Listening to Passengers
Kept Delta Airlines Flying
• What controls can managers
use to ensure success in
turbulent times?
• Listening to customers’ safety
concerns during the pandemic
helped Delta Airlines’
management team implement
operational changes to its
business processes, which
improved overall service and
profitability.
© McGraw Hill Bing Guan/Bloomberg/Getty Images 3
What is Organizational Control?
Organizational control:
• Managers monitor and regulate how efficiently and
effectively an organization and its members are
performing the activities necessary to achieve
organizational goals.
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The Importance of Organization
Control
To obtain superior efficiency, quality, responsiveness
to customers, and innovation:
• Measure inputs and outputs.
• Measure the quality of the goods.
• Increase responsiveness to customers.
• Control can raise the level of innovation.
• Without a control system, managers have no way of
knowing how successful, or unsuccessful, they have
been.
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Control Systems and Technology 1
Control systems:
• Formal, target-setting, monitoring, evaluation, and
feedback systems that provide managers with
information about whether the organization’s strategy
and structure are working efficiently and effectively.
Technology:
• Facilitates the flow of accurate and timely information.
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Figure 11.1: Three Types of Control
Access the text alternative for slide images.
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Control Systems and Technology 2
Concurrent control:
• Control that gives managers immediate feedback on
how efficiently inputs are being transformed into
outputs so managers can correct problems as they
arise.
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Control Systems and Technology 3
Input Stage.
Feedforward control:
• Control that allows managers to anticipate problems
before they arise.
• Giving stringent product specifications to suppliers in
advance.
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Example: University of Alabama
Gameday
The University of Alabama provides information for
fans to be ready for football game day parking and
events.
This is an example of feedforward control.
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Control Systems and Technology 4
Output Stage.
Feedback control:
• Control that gives managers information about
customers’ reactions to goods and services so
corrective action can be taken if necessary.
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Figure 11.2: Four Steps in
Organizational Control
Access the text alternative for slide images.
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The Control Process 1
1. Establish standards of performance, goals, or
targets against which performance is to be
evaluated.
• Managers decide on the standards of performance,
goals, or targets that they will use in the future to
evaluate the performance of the entire organization or
part of it.
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The Control Process 2
2. Measure actual performance.
• Managers measure outputs resulting from worker
behavior or measure the behavior themselves.
• The more non-routine the task, the harder it is to
measure behavior or outputs.
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The Control Process 3
3. Compare actual performance against chosen
standards of performance.
• Managers evaluate whether, and to what extent,
performance deviates from the standards of
performance chosen in step 1.
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The Control Process 4
4. Evaluate the result and initiate corrective
action if the standard is not being achieved.
• If managers decide that the level of performance is
unacceptable, they must try to change the way work
activities are performed to solve the problem.
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© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.