SISTEMPENGENDALIANMANAJEMEN u Resultsmeasuresshouldbe:

Ch01ManagementAndControl Precise;
ManagementControl>theprocessbywhichmanagement:ensuresthatpeopleintheorganizationcarryout Objective;
organizationalobjectivesandstrategies;encourages,enables,orsometimesforcesemplyeestoactintheorganizations Timely;
bestinterest. Understandable.
Purpose/function: Pros Cons
1. Getdonewhatmanagementwantstobedone u Behaviorcanbeinfluencedwhileallowing u Oftenlessthanperfectindicatorsofwhether
2. Influencebehaviorindesirableways significantautonomy. goodactionshavebeentaken.
Benefit:Increasedprobabilitythattheorganizationsobjectiveswillbeachieved u Theyyieldgreateremployeecommitmentand u Theyshiftrisktoemployees(because
motivation. ofuncontrollablefactors).Hence,theyoften
u Theyareofteninexpensive. requireariskpremiumforriskaverse
e.g.performancemeasures employees.
areoftencollectedfor u Sometimesconflictingfunctions:
reasonsnotdirectly Motivationtoachieve
relatedtomanagement targetsshouldbechallenging
control. Communicationamongentities
targetsshouldbeslightly
conservative

Ch03Action,PersonnelandCulturalControls
1. ActionControl
Threeissuesofmanagementcontrol:
Ensurethatemployeesperform(ordonotperform)certainactionsknowntobebeneficial(orharmful)
1. Lackofdirection
totheorganization.
2. Lackofmativation
Mostactioncontrolsareaimedatpreventingundesirablebehaviors.
3. Personallimitations
Effectivenessactioncontrol:
ControlAlternatives:
u Theyareusableandeffectiveonlywhenmanagers:
1. TheactionstakenActionControls
Knowwhatactionsaredesirable...
2. TheresultsproducedResultControls
Difficultinhighlycomplexanduncertaintaskenvironments.
3. ThetypesofpeopleemployedandtheirsharedvaluesandnormsPeoplecontrols
(e.g.,researchengineersortoplevelmanagers)
Ch02ResultControl
Havetheabilitytomakesurethatthedesirableactionsoccur...
u Itinvolvesrewardingindividualsforgeneratinggoodresults,orpunishingthemforpoorresults.
BehavioralConstraint:
Resultsaccountability
u Physicalconstraints
u Itinfluencesactionsbecauseitcausesemployeestobeconcernedabouttheconsequencesoftheactionsthey
Locks,passwords,limitedaccess,
take.
u Administrativeconstraints
However,theemployeesactionsarenotconstrained;
Restrictionofdecisionmakingauthority;
Onthecontrary,employeesareempoweredtotakewhateveractionstheybelievewillbest
Separationofduties.
producethedesiredresults.
Primarilydirectedatonecontrolproblem:eliminatemotivationalproblems.
u Definingtheperformancedimensions
Pros Cons
Whatyoumeasureiswhatyouget;hence,
u Themostdirectformofcontrol u Onlyforhighlyroutinizedjobs
Ifnotcongruentwiththeorganizationsobjectives,thecontrols
u Tendtoleadtodocumentation u Maydiscouragecreativity,innovation,and
willactuallyencourageemployeestodothewrongthings!
oftheaccumulationofknowledgeastowhat adaptation
u Measuringperformanceonthesedimensions worksbest. u Maycausesloppiness
Objective>financial>marketbased:e.g.,stockprice; Organizationalmemory u Maycausenegativeattitudes
>accountingbased:e.g.,returnonassets; u Anefficientwayofcoordination: e.g.,littleopportunityfor
>nonfinancial:e.g.,marketshare,cycletime,waste; i.e.,theyincreasethepredictability creativityandself
Subjective:e.g.,managerialcharacteristics(beingateamplayer). ofactionsandreducetheamount actualization
u Settingperformancetargets ofinterorganizationalinformation u Sometimesverycostly
Motivationaleffects+allowtointerpret(own)performance. flowstoachieveacoordinated
u Providingrewardsorpunishments effort.
Salaryincreases,bonuses,promotions,jobsecurity,recognition,etc. 2. PeopleControl
u Resultscontrolsworkbestonlywhenallof u Peoplecontrolsensurethatemployees...
thefollowingthreeconditionsarepresent: Willcontroltheirownbehaviors
u Superiors/managersmustknowwhatresultsaredesiredintheareasbeingcontrolled; u Personnelcontrol
u Theindividualswhosebehaviorsarebeingcontrolledmusthavesignificantinfluenceontheresultsinthe u Selfmonitoring
desiredperformancedimensions; Willcontroleachothersbehaviors
u Superiors/managersmustbeabletomeasuretheresultseffectively. u Culturalcontrols
 u Mutualmonitoring
u Peoplecontrolsarepartofvirtuallyeverymanagementcontrolsystem+becomingmoreimportantinflatter
andleanerorganizationswithempoweredemployees.
u Personnelcontrolsbuildonemployeesnaturaltendenciestocontrolthemselves,becausemostpeople
haveaconsciencethatleadsthemtodowhatisright;
findselfsatisfactionwhentheydoagoodjobandseetheirorganizationsucceed
Methodstoimplementpersonnelcontrol:
u Generally,itisabout
findingtherightpeople,givingthemagoodworkenvironmentandthenecessaryresources
u Selectionandplacement
Findingtherightpeopletodoaparticularjob.
u Training
Giveemployeesagreatersenseofprofessionalism;
Createinterestinthejobbyhelpingemployeesto
understandtheirjobbetter.
u Jobdesign+provisionofnecessaryresources
Sothatmotivatedandqualifiedemployeeshaveahigh
probabilityofsuccess(e.g.,equipment,staffsupport,
freedomfrominterruption,etc.)
CulturalControls:
u Culturalcontrolsormutualmonitoringtapintosocialpressureandgroupnormsandvalues.
u Culturalcontrolsareeffectivebecausemembersofagrouphaveemotionaltiestooneanother.

WaystoShapeCulture:

1. Codesofconduct

u Codesofethics;corporatecredos,missionstatements,etc.;

u Formalwrittendocumentswithbroadstatementsofcorporate
values,commitmentstostakeholders,andthewaysinwhich
topmanagementwouldlikethefirmtofunction.

u Fundamentalguidingprinciplesofthecompany.

2. Groupbasedrewards

u e.g.,bonus,profitsharing,employeeownershipofcompanystock;

u Culturalcontrolsratherthanresultscontrolsbecausethelinkbetweenindividualperformance
andrewardsisweak.

3. Intraorganizationaltransfers

u Improvethesocializationofindividualsinanorganizationand
inhibittheformationofincompatiblegoalsandperspectives;

u Improveidentificationwiththeorganizationasawholeas
opposedtosubunitidentification.

4. Physicalandsocialarrangements

u e.g.,officeplans,interiordecor,dresscodesandvocabulary,etc.

5. Toneatthetop

u Topmanagementstatementsmustbeconsistentwiththeculture
theyaretryingtocreate,andimportantly,theirbehaviorsshould
beconsistentwiththeirstatements.

asdasd