mullins: management and organisational behaviour, 7th edition © pearson education limited 2005...
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Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
Management and Organisational Behaviour
7th Edition
PART 8
Improving Organisational Performance
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
Management and Organisational Behaviour
7th Edition
CHAPTER 21
Organisational Control and Power
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.3
The meaning of control
• An inherent characteristic of the nature of organisations
• Process of control is at the centre of the exchange between the benefits that the individual derives from membership of an organisation & the costs of such benefits
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.4
The meaning of control
Control processes help circumscribe idiosyncratic behaviours & keep them conformant to the rational plan of the organization
Tannenbaum
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.5
Management control
• Primarily a process for motivating & inspiring people to perform organisational activities that will further the organisational goals.
• A process for detecting & correcting unintentional performance errors & intentional irregularities, such as theft or misuse of resources. Berry et al.
• Monitors the performance of the delegated task so that the expected results are successfully achieved. Payne & Payne
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.6
The nature of management control
Figure 21.1
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.7
The controversial nature of control
• Control often has an emotive connotation & is interpreted in a negative manner to support direction or command by the giving of orders
• Control systems regulate behaviour
• People can be suspicious of control systems
• Control can emphasise punishment
• Organisational control exploits employees
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.8
Control & the classical approach
Control is viewed as an essential feature of formal organisation and a hierarchical structure of authority
Taylorism & scientific management can be seen as representing a form of management control over workers & the actual process of work
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.9
Control & the traditional view
• Assumes the amount of control is fixed
• Based on the use of routine procedures & the exercise of rules & regulations in an attempt to create consistency & predictability in behaviour
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.10
Control & the human relations approach
Control is seen more as a feature of interpersonal influence and takes place within a network of interaction and communications
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.11
Control & the contingency approach
• Management control is an organisation variable
• While the need for control is constant, the extent & manner of control is variable
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.12
Messages for today
Control must never outweigh leadership
• Control is the hallmark of the Old World while leadership is a measure of the New. Obeng
• Command and control is out. Consultation & communication is in … Lucas
• Many employees have grown up in hierarchical organisations & are accustomed to external authority & the dead weight of organisational history. Cloke & Goldsmith
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.13
Elements of an organisational control system
There are five elements of a control system –
1. Planning
2. Establishing
3. Monitoring
4. Comparing
5. Rectifying
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.14
Elements of an organisational control system
Figure 21.2
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.15
Planning what is desired
Providing the framework against which the process of control takes place
Involves – • Clarifying the aims to be achieved• Specifying objectives & targets
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.16
Establishing defined standards of performance
• Realistic measurements against which success can be measured
• Measurements stated where possible in quantitative terms
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.17
Monitoring & comparing actual performance
• Interpreting & evaluating information in order to detail progress, reveal deviations & identify probable causes
• Information feeds back to those concerned to let them know how well they are getting on
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.18
Taking corrective action
• Considering what can be done to improve performance
• Authority takes appropriate action to correct the situation, review the operation of the control system & make any necessary adjustments to objectives & targets
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.19
Forms of control
• Control systems can focus on the measurement of inputs, outputs, processes or the behaviour of people
• Controls can be concerned with general results or with specific actions
• Controls can be concerned with an evaluation of overall performance of the organisation as a whole or parts of it
• Controls can be concerned with the measurement & performance of day to day operational activities
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.20
Behavioural control
• Is based on direct supervision• Useful to needs of individual managers in their
attempts to control subordinates• Is responsive to the particular needs of the
tasks, abilities of the manager & the norms of the organisation
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.21
Output control
• Based on the measurement of outputs & the
results achieved
• Serves the needs of the organisation as a whole
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.22
Technology & control systems
Woodward’s study of 100 manufacturing firms in South Essex
• Unit & small batch production firms tended to have unitary & mainly personal control
• Process production firms tended to have unitary & mainly impersonal controls
• Large batch & mass production firms predominantly had personal controls
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.23
Increasing use of IT
• With increasing use of IT, control will become more indirect
• Information systems will be used to increase control by measuring more things, new things at multiple levels, and at a greater frequency than before
Nordstrom & Ridderstrale
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.24
Characteristics of an effective control system
• Understood by those involved in its operation
• Conforms with the structure of the organisation
• Is related to decision centres responsible for performance
• Reports deviations from the desired standards of performance as quickly as possible
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.25
Characteristics of an effective control system
• Draws attention to the critical activities which are important to the success of the organisation
• Flexibility
• Consistent with the objectivity of the activity to which it relates
• Subject to a continual review
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.26
Strategies of control in organisations
• Personal centralised
• Bureaucratic
• Output
• Cultural
Child
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.27
Power
• A complex & dynamic concept that is difficult to define easily
• Broadly – control or influence over the behaviour of other people with or without their consent
• More specifically – the medium through which conflicts of interest are ultimately resolved. Influences who gets what, when & how
Morgan
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
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Types of power
• Coercive
• Remunerative
• Normative
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
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Involvement
The degree of commitment by members to the organisation
• Alienative
• Calculative
• Moral
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
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Perspectives of organisational power
• Processual level
• Institutional level
• Organisational level
Fincham
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.31
Acquiring power
• Providing resources• Coping with uncertainty• Being irreplaceable• Affecting decision processes• By consensus
Pfeffer
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.32
Pluralistic approaches to power
• Reward power• Coercive power• Legitimate power• Referent power• Expert power
French & Raven
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.33
Three main forms of control
• Direct control by orders, direct supervision & rules & regulations
• Control through standardisation & specialisation• Control through influencing the way that people
think about what they should do
Stewart
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.34
Manager – subordinate relationship
• Authority
• Responsibility
• Accountability
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.35
The basis of delegationFigure 21.5
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.36
Reasons to delegate
• Makes best use of manager’s time• Means of training & development• Encourages development of specialist
knowledge & skills• Geographical location• Sound economics• Improves strength of the workforce
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.37
Main stages in the process of delegation
Figure 21.6
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.38
Balance between delegation & control
Figure 21.8
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.39
Empowerment
Allowing employees greater freedom, autonomy, & self control over their work, & responsibility for decision making
Empowerment can be succinctly defined as the authority of subordinates to decide & actMills & Friesen
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.40
Empowering managerial initiatives
• Empowerment through participation
• Empowerment through involvement
• Empowerment through commitment
• Empowerment through de-layering
Lashley
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.41
Resistance to control systems
Most likely to be present when:
• Control system measures performance in a new area
• Control system replaces a system that people have a high investment in maintaining
• Standards are set without participation• Results from the control system are not fed back
to the people whose performance is measured
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.42
Resistance to control systems
Most likely to be present when:
• Results from the control are fed to higher levels in the organisation
• People affected by the system are relatively satisfied with things as they are
• Those affected by the system are low in self- esteem & authoritarianism
Lawler
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.43
Overcoming resistance to management control
• Consultation & participation
• Motivation
• Organisation structure
• Groups & informal organisation
• Leadership style & systems of management
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited
2005
OHT 21.44
MBO as a control systemTable 21.2
Source: Adapted and reproduced with permission from Humble, J.W., Management by Objectives, Management Publications Limited for the British Institute of Management (1972) p.46.