11-1 organizational control –managers monitor and regulate how efficiently and effectively an...
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11-1
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
11-2
Organizational Control
Managers must monitor and evaluate:– Is the firm efficiently converting inputs into outputs?
• Are units of inputs and outputs measured accurately?
– Is product quality improving?• Is the firm’s quality competitive with other firms?
– Are employees responsive to customers?• Are customers satisfied with the services
offered?– Are our managers innovative in outlook?
• Does the control system encourage risk-taking?
11-3
Control Systems
• 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.
11-7
Output Control
• Operating Budgets– Blueprint that states how managers intend to
use organizational resources to achieve organizational goals efficiently.
11-8
Behavior Control
• Direct supervision– managers who actively monitor and observe
the behavior of their subordinates– Teach subordinates appropriate behaviors– Intervene to take corrective action– Most immediate and potent form of
behavioral control– Can be an effective way of motivating
employees
11-9
Management by Objectives
• Management by Objectives (MBO) – formal system of evaluating subordinates for
their ability to achieve specific organizational goals or performance standards and to meet operating budgets
11-10
Management by Objectives
1. Specific goals and objectives are established at each level of the organization
2. Managers and their subordinates together determine the subordinates’ goals
3. Managers and their subordinates periodically review the subordinates’ progress toward meeting goals
11-11
Bureaucratic Control
• Bureaucratic Control– Control through a system of rules and
standard operating procedures (SOPs) that shapes and regulates the behavior of divisions, functions, and individuals.
11-12
Organization Change
Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness
11-14
Lewin’s Force-Field Theory of Change
• There are a wide variety of forces arising from the way an organization operates, from its structure, culture, and control systems that make organizations resistant to change
11-15
Lewin’s Force-Field Theory of Change
• To get an organization to change, managers must find a way to increase the forces for change, reduce resistance to change, or do both simultaneously
11-17
Evaluating the Change
• Benchmarking – The process of comparing one company’s
performance on specific dimensions with the performance of other, high-performing organizations.
12-18
Strategic Human Resource Management
• Human Resource Management (HRM)–Activities that managers engage in to attract
and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.
12-19
Strategic Human Resource Management
• HRM activities– Recruitment and selection– Training and development– Performance appraisal and feedback– Pay and benefits– Labor relations
12-21
HRM Components
• Recruitment and Selection– Used to attract and hire new employees
who have the abilities, skills, and experiences that will help an organization achieve its goals.
12-22
HRM Components
• Training and Development– Ensures that organizational members
develop the skills and abilities that will enable them to perform their jobs effectively in the present and the future
– Changes in technology and the environment require that organizational members learn new techniques and ways of working
12-23
HRM Components
• Performance Appraisal and Feedback– Provides managers with the information
they need to make good human resources decisions about how to train, motivate, and reward organizational members
– Feedback from performance appraisal serves a developmental purpose for members of an organization
12-24
HRM Components
• Pay and Benefits– Rewarding high performing organizational
members with raises, bonuses and recognition. • Increased pay provides additional
incentive. • Benefits, such as health insurance,
reward membership in firm.
12-25
HRM Components
• Labor relations– Steps that managers take to develop and
maintain good working relationships with the labor unions that may represent their employees’ interests
12-26
The Legal Environment of HRM
• Equal Employment Opportunity (EEO)– The equal right of all citizens to the
opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities.
– Equal Employment Opportunity Commission (EEOC) enforces employment laws.
12-28
Effective Performance Feedback
• Formal appraisals– An appraisal conducted at a set time during
the year and based on performance dimensions that were specified in advance
• Informal appraisals– An unscheduled appraisal of ongoing
progress and areas for improvement
12-29
Pay and Benefits
• Pay level– The relative position of an organization’s
incentives in comparison with those of other firms in the same industry employing similar kinds of workers
• Managers can decide to offer low, average or high relative wages.
• High wages attract and retain high performers but raise costs; low wages can cause turnover and lack of motivation but provide lower costs.
12-30
Labor Relations
• Laws regulating areas of employment.– Fair Labor Standards Act (1938) prohibits
child labor, sets a minimum wage and maximum working hours.
– Equal Pay Act (1963) men and women doing equal work will get equal pay.
– Work Place Safety (1970) OSHA mandates procedures for safe working conditions.
12-31
Unions
• Unions– Represent worker’s interests to management in
organizations.– The power that a manager has over an individual
worker causes workers to join together in unions to try to prevent this.
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