Diagnostic Skills • Diagnostic skills enable a manager – To visualize the most appropriate response to a situation. – To understand and predict cause-andeffect relationships. © 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. 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. © 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. 6–3 Areas of Control Areas of Control Physical Resources Human Resources Information Resources © 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. Financial Resources 6–4 Levels of Control Strategic Control Structural Control Operations control Financial control © 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. 6–5 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. © 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. 6–6 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 © 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. 6–7 Managing Control in Organizations Characteristics of Effective Controls Integration with planning Flexibility Accuracy Timeliness Objectivity © 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. 6–8 Managing Control: Sources of Resistance to Control Overcontrol C o n t r o l Inappropriate Focus Rewards for Inefficiency Too Much Accountability © 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. 6–9 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. © 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. 6–10 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. © 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. 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. © 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. 6–12 Kinds of Reinforcement in Organizations Kinds of Reinforcement Positive Reinforcement Avoidance Punishment Extinction © 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. 6–13 Reinforcement Perspectives (cont’d) Reinforcement Schedules Time Fixed Interval Frequency Variable Interval Fixed Ratio © 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. Variable Ratio 6–14 Alternative Forms of Working Arrangements Compressed work schedule Variable Work Schedules Flexible work schedules (flextime) Job sharing Telecommuting © 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. 6–15 Reward Systems and Performance Types of Reward Systems Individual Merit Rewards Systems Individual Incentive Rewards Systems Group and Team Incentive Rewards Systems © 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. 6–16