Review
Fiedler’s contingency model of leadership
style proposed that effectiveness depends
on the ability and willingness of the
subordinates.
- True
- False
9/2/2019
1
The least-preferred coworker questionnaire
measures whether a person is task or
relationship oriented.
• True
• False
9/2/2019
2
Transactional and transformational
leadership are opposing approaches to
getting things done.
- True
- False
9/2/2019
3
Leadership is __________________.
a) the process of influencing a group toward
the achievement of goals
b) a group that achieves goals
c) the function of influencing a group towards
the achievement of goals
d) directing a group towards the achievement
of goals
9/2/2019
4
The University of Iowa studies discussed all
of the following leadership styles except
________________.
a)laissez-faire
b)democratic
c)accommodating
d)autocratic
9/2/2019
5
According to the Ohio State studies, which of the
following dimensions of leader behavior refers to
the extent to which a leader is likely to define
and structure his or her role and the roles of
group members in the search for goal
attainment?
a)intelligence structure
b)psychological structure
c) initiating structure
d)consideration structure
9/2/2019
6
Fiedler assumed a person’s leadership style
was _______________.
a)
b)
c)
d)
9/2/2019
contingent
relative
dimensional
fixed
7
Which of the following leadership styles
describes a leader who provides both
directive and supportive behavior?
a)
b)
c)
d)
9/2/2019
telling
selling
participating
delegating
8
A leader who sets challenging goals and
expects very high performance levels from
subordinates is classified as what type of
leader, according to path-goal theory?
a)
b)
c)
d)
9/2/2019
supportive
participative
achievement oriented
democratic
9
Path-goal theory identifies two classes of
situation variables that moderate the
leadership-behavior outcome as
_________________.
a)
b)
c)
d)
9/2/2019
tact and relationship
path and goal
people and history
environment and followers
10
A leader, such as Bill Gates of Microsoft,
who can inspire followers above their own
self-interests and can have a profound
effect on their performance, is known as
a(n) _____________.
a)
b)
c)
d)
9/2/2019
transactional leader
directive leader
informational leader
transformational leader
11
Which of the following is the type of power a
person has because of his or her position
in the formal organizational hierarchy?
a)
b)
c)
d)
9/2/2019
legitimate power
coercive power
reward power
expert power
12
Chapter
17
Foundation of
Controls
13
Lecture Outline
1. Why is control important?
2. The control process
3. Controlling organizational performance
4. Contemporary issues in control
14
What is Controlling?
• Controlling
– The process of monitoring, comparing, and
correcting work performance.
• The Purpose of Control
– To ensure that activities are completed in
ways that lead to accomplishment of
organizational goals.
15
Why Is Control Important?
• As the final link in management functions:
– Planning
• Controls let managers know whether their goals
and plans are on target and what future actions to
take.
– Empowering employees
• Control systems provide managers with
information and feedback on employee
performance and minimize the chance of potential
problems.
– Protecting the workplace
• Controls enhance physical security (assets) and
help minimize workplace disruptions.
16
Planning – Controlling Link
17
The Control Process
18
Step 1: Measuring: How and What
We Measure
• Sources of
Information (How)
– Personal
observation
• Control Criteria
(What)
– Employees
• Satisfaction
– Statistical reports
• Turnover
– Oral reports
• Absenteeism
– Written reports
– Budgets
• Costs
• Output
• Sales
19
Step 2: Comparing
• Determining the degree of variation
between actual performance and the
standard.
– Significance of variation is determined by:
• The acceptable range of variation from the
standard (forecast or budget).
• The size (large or small) and direction (over or
under) of the variation from the standard (forecast
or budget).
20
Exhibit 17–4
Acceptable Range of Variation
21
Step 3: Taking Managerial Actions
• Courses of Action
– “Doing nothing”
• Only if deviation is judged to be insignificant.
– Correcting actual (current) performance
• Immediate corrective action to correct the problem at once.
• Basic corrective action to locate and to correct the source of
the deviation.
• Corrective Actions
– Change strategy, structure, compensation scheme, or training
programs; redesign jobs; or fire employees
– Revising the standard
• Examining the standard to ascertain whether or not the
standard is realistic, fair, and achievable.
– Upholding the validity of the standard.
– Resetting goals that were initially set too low or too high.
22
Exhibit 17–6
Managerial Decisions in the Control Process
23
Controlling for Organizational
Performance
• What Is Performance?
– The end result of an activity
• What Is Organizational
Performance?  What can make high
Organization Performance?
– The accumulated end results of all of the
organization’s work processes and activities
• Designing strategies, work processes, and work activities.
• Coordinating the work of employees.
24
Organizational Performance
Measures
• Organizational Productivity
– Productivity: the overall output of goods
and/or services divided by the inputs needed
to generate that output.
• Output: sales revenues
• Inputs: costs of resources (materials, labor
expense, and facilities)
– Ultimately, productivity is a measure of how
efficiently employees do their work.
25
Organizational Performance
Measures (cont.)
• Organizational Effectiveness
– Measuring how appropriate organizational goals are
and how well the organization is achieving its goals.
26
Organizational Performance Measures (cont.)
Exhibit 17–7 Popular Industry and Company Rankings
27
Tools for Controlling Organizational
Performance
1.
2.
3.
4.
Financial controls
The balanced scorecard approach
Information controls
Benchmarking or best practices
28
Exhibit 18–9
Types of Control
29
Types of Control
• Feedforward Control
– A control that prevents anticipated problems
before actual occurrences of the problem.
• Building in quality through design.
• Requiring suppliers conform to ISO 9002.
• Concurrent Control
– A control that takes place while the monitored
activity is in progress.
• Direct supervision: management by walking
around.
30
Types of control
• Feedback Control
– A control that takes place after an activity is
done.
• Corrective action is after-the-fact, when the
problem has already occurred.
– Advantages of feedback controls:
• Provide managers with information on the
effectiveness of their planning efforts.
• Enhance employee motivation by providing them
with information on how well they are doing.
31
Tools for Controlling Organizational
Performance: Financial Controls
• Traditional Controls
• Ratio analysis
• Liquidity
• Leverage
• Activity
• Profitability
– Budget Analysis
• Quantitative standards
• Deviations
32
Exhibit 17–9 Popular Financial Ratios
33
Exhibit 17–9
Popular Financial Ratios (cont’d)
34
Tools for Controlling Organizational
Performance: The Balanced Scorecard
• Balanced Scorecard
– Is a measurement tool that uses goals set by
managers in four areas to measure a company’s
performance:
• Finances
• Customer
• Internal processes
• People/innovation/growth assets
– Is intended to emphasize that all of these areas are
important to an organization’s success and that there
should be a balance among them.
35
Tools for Controlling Organizational
Performance: Information Controls
• Purposes of Information Controls
– As a tool to help managers control other
organizational activities.
• Managers need the right information at the right time and in
the right amount.
– As an organizational area that managers need to
control.
• Managers must have comprehensive and secure controls in
place to protect the organization’s important information.
• Management Information Systems (MIS)
– A system used to provide management with needed
information on a regular basis.
– Data vs. information
36
Tools for Controlling Organizational
Performance: Benchmarking of Best
Practices
• Benchmark
– The standard of excellence against which to measure
and compare.
• Benchmarking
– Is the search for the best practices among
competitors or non-competitors that lead to their
superior performance.
– Is a control tool for identifying and measuring specific
performance gaps and areas for improvement.
37
Terms to Know
•
•
•
•
•
•
•
controlling
market control
bureaucratic control
clan control
control process
range of variation
immediate corrective
action
• basic corrective action
• performance
• organizational
performance
• productivity
• organizational
effectiveness
• feedforward control
• concurrent control
• management by walking
around
• feedback control
38
Terms to Know (cont.)
• management information
system (MIS)
• data
• information
• balanced scorecard
• Benchmarking
39