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Unformatted text preview: Chapter 15: Organizational Control in a Complex Business Environment CHAPTER 15 ORGANIZATIONAL CONTROL IN A COMPLEX BUSINESS ENVIRONMENT LEARNING OBJECTIVES 1. Define and discuss the importance of organizational control. 2. Identify the sequence of steps to be undertaken in a thorough control system. 3. Identify the factors that are important considerations in the design of a control system. 4. Describe the various criteria of effective control. 5. Identify the factors that help determine the proper amount of control. 6. Define feedforward control, concurrent control, and feedback control. 7. Describe the difference between the philosophies of bureaucratic control and organic control. 8. Describe some of the more important techniques and methods for establishing financial control. 9. Discuss some of the ethical issues related to the control of employee behavior. CHAPTER OVERVIEW Control is a critically important managerial function because it helps ensure that all of our planning, organizing, and leading have gone as we intended. This chapter describes the process of control, which includes setting standards of performance, measuring actual performance, comparing actual performance with standards, and providing corrective action and feedback. The criteria for effective control are presented, followed by a discussion of feedforward, concurrent, and feedback control. After a discussion of the mechanisms for financial control, the chapter ends with an interesting discussion of the ethical issues in control, including, drug testing, undercover surveillance, and computer monitoring. PEDAGOGY GRID Chapter Boxes Main Points Facing the Challenge/Meeting the Challenge: Berner Foods: The Biggest Cheese Maker You Never Heard Of / Berner Foods: Controlling Its Destiny • Berner Foods manufactures 70-90% of all private-label cheese-related products. • Consolidation of retailers and increasing regulatory controls continue to strain Berner’s thin profit margins. Berner’s implementation of a new system for controls has cut recall response time from 8 hours to 30 minutes and resulted in several other significant improvements. 230 Chapter 15: Organizational Control in a Complex Business Environment Leaders in Action: LINPAC Plastics • Highly interactive feedback reports have enabled LINPAC to reduce inventory costs, forecast and plan production more effectively, eliminate bottlenecks and overproduction, and significantly reduce costs. Now Apply It: Checklist for Designing Effective Control Systems • Answering these ten questions can help ensure that all important aspects of a control system have been included. At the Forefront: FAA Proposes New “Black Box” Rules • The FAA is proposing legislation to require implementation of upgrades to aircraft flight recorders that have been recommended by NTSB....
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This note was uploaded on 01/31/2011 for the course MGMT 302 taught by Professor N/a during the Spring '10 term at Mountain State.
- Spring '10