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[11]_Organizational_Control - ORGANIZATIONAL CONTROL...

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O RGANIZATIONAL C ONTROL Controlling: is the process that managers use to monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals. T HE I MPORTANCE OF O RGANIZATIONAL C ONTROL 1. Adapt to change and uncertainty: New suppliers and customers might appear just like new technology. 2. Discover irregularities and errors: control system helps managers uncover quality control, customer service, or HRM. 3. Reduce costs, increase productivity, or add value: 4. Detect opportunities: it helps managers identify new markets, demographic changes, and new suppliers. 5. Deal with complexity: when organizations become large, it is hard to know what each unit is doing. 6. Decentralize decision making and facilitate teamwork: when control systems are in place, managers can allow employees to make more decisions, and work in teams. S TEPS IN O RGANIZATIONAL C ONTROL 1. Establish the standards of performance: Managers decide on the standards of performance, goals, or targets that they will use to evaluate the performance of either the entire organization or some part of it, i.e. divisions, functions, or individuals. 2. Measure actual performance: Managers can measure two things: 1) the actual outputs that result from the behaviour of their members. 2) The behaviours themselves.
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