© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Diagnostic Skills

• Diagnostic skills enable a manager– To visualize the most appropriate

response to a situation.– To understand and predict cause-and-

effect relationships.

6–2

Understanding Control

• Control

– Is the regulation of organizational activities so that some targeted element of performance remains within acceptable limits.

• Benefits of Control

– Provides organizations with indications of how well they are performing in relation to their goals.

– Provides a mechanism for adjusting performance to keep organizations moving in the right direction.

6–3© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Areas of Control

Physical Resources

Human Resources

Information Resources

Financial Resources

Areas of Control

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© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Levels of Control

6–5

StrategicControl

StructuralControl

Operationscontrol

Financialcontrol

Responsibilities for Control

• Managers– Are responsible for overseeing the wide array of

control systems and concerns in organizations.

• Controller– Is a staff member that helps

line managers with their control activities.

• Operative Employees– Check the quality of their work

and correct their own errors.

6–6© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Designing Control Systems

• Design and implementation of control systems requires:

– Careful diagnosis of the organizational, environmental, and operational context

– An understanding of the specific steps in the control process

– An understanding of the fundamental elements of operations control

– An understanding of the characteristics of effective control

6–7

Managing Control in Organizations

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Integration with planning

Flexibility

Accuracy

Timeliness

Characteristics of Effective Controls

Objectivity

Contro

l

Managing Control:Sources of Resistance to Control

Inappropriate Focus

Overcontrol

Too Much Accountability

Rewards for Inefficiency

6–9© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Overcoming Resistance to Control

• Resistance to control can be overcome by:– Integrating and aligning controls with organizational

planning, goals, and standards.– Creating flexible, accurate, timely, and objective

controls.– Avoiding overcontrol.– Guarding against controls that reward inefficiencies.– Encouraging employee participation in the planning

and implementing of control systems.– Developing checks and balances that verify the

accuracy of performance indicators.

6–10© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Popular Motivational Strategies

• Empowerment– Enabling workers to set their work goals, make

decisions, and solve problems within their sphere of influence.

• Participation– Giving employees a voice in making decisions

about their work.– Areas of participation for employees:

• Making decisions about their jobs.• Decisions about administrative matters• Participating in decision making about

broader issues of product quality.

6–11

Reinforcement Perspectives on Motivation

• Reinforcement Theory

– Addresses the role of rewards as they cause behavior to change or remain the same over time.

– Assumes that:

• Behavior that results in rewarding consequences is likely to be repeated.

• Behavior that results in punishing consequences is less likely to be repeated.

6–12© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Kinds of Reinforcement in Organizations

6–13

Positive Reinforcement

Avoidance

Punishment

Extinction

Kinds ofReinforcement

Reinforcement Perspectives (cont’d)

Fixed Interval

Variable Interval

Fixed Ratio

Variable Ratio

Reinforcement Schedules

Time Frequency

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Alternative Forms of Working Arrangements

Variable WorkSchedules

Compressed work schedule

Flexible work schedules (flextime)

Job sharing

Telecommuting

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Reward Systems and Performance

Individual Incentive Rewards Systems

Group and Team Incentive Rewards Systems

Individual Merit

Rewards Systems

Types of Reward Systems

6–16© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.