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What are the different types of control?
Define Bureaucratic Control
measures progress toward set performance goals and, if necessary, to apply corrective measures to ensure that performance achieves managers’ objectives
Define Market Control
- Price becomes an indicator of the value of the good or service
- Price competition has the effect of controlling productivity and performance
Define Clan Control
Control based on the norms, values, shared goals, and trust among group members
What are the 4 steps to the design of a basic control system? AKA The Control Cycle
- 1. Setting performance standards
- 2. Measuring performance
- 3. Comparing performance with the standard
- 4. Taking corrective action to correct problems and reinforce success
What are the 3 different approaches to control?
1. Feedforward control- Used before operation begins to ensure plans are carried out properly. Ex: policies and procedures
2. Concurrent control- Used during operation. Ex: directing and monitoring
3. Feedback control- Used after operation, Taking previous results to make corrections
What is the downside of Bureaucratic Control?
Rigid bureaucratic behavior
Resistance to control
In order for managers to maximize benefits and minimize dysfunctional behaviors, they must design control systems that what? (5)
- 1. Establish valid performance standards (employees know company standards)
- 2. Provide adequate information to employees - employees can base performance on, self
- 3. Ensure acceptability to employees.
- 4. Maintain open communication
- 5. Use multiple approaches - reasonable goals
Designing Effective Control Systems
Establish effective control systems
Provide adequate information to employees
Ensure acceptability to employees
Maintain open communications
Use multiple approaches