chapter 8 outline

chapter 8 outline - Chapter 8 Organizational Control 1....

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Chapter 8 Organizational Control 1. Controlling is a procedure undertaken by managers to improve the effectiveness and efficiency of an organization and its members by use of observation and evaluation. 2. This evaluation is based around the intended improvement of how the company runs and how it could be run better. 3. Reasons Organizational Control is important 1. Controls give the manager the ability to access how efficiently production of their products or services are. With controls they can get feedback including but not limited to the amount of input and subsequent output, time taken to produce this output, quality of output and the costs of creating these outputs. 2. This information can help managers decide which changes are necessary to help improve the organization. For example a customer survey will alert the manager to a lack of customer service skills if this is the case. 3. Information gained from controls helps guide managers decisions regarding changes needed in the organization by giving them timely observable data that they can use to evaluate efficiency. 4. The most successful managers enact control systems that give them constant feedback on quality and efficiency. 5. Controlling can also increase the level of innovation a company has as long as they are set up in the proper way. A strict and centralized control system will not foster innovation while on the other hand a control system that allows an employee his freedom will encourage employees to take risks. 4. Control Systems and IT 1. Control system- Goals, observations, evaluations, and feedback systems that supply a manager with data concerning the effectiveness and efficiency of the organizations current strategy. For a control system to be effective it must contain three characteristics 1. The information provided is accurately depicting the company’s current status 2. The information must have a level of flexibility that allows the manager to respond to unforeseen events. 3. The information is supplied quickly as to give the manager the ability to make decisions regarding it. 2. New types of IT- Allow for quicker and easier imputing of information. 5. Three types of Control 1. Feedforward control- Takes place during the input stage. Feedforward control helps managers anticipate potential issues before they come to pass. This can save the organization money and help improve the quality of their products or services before they reach the customer. One issue that can occur with strict feedforward control is the stifling of innovation. 2. Concurrent control- This type of control occurs during the conversion stage. This type of control gives managers instant feedback on the efficiency of current production allowing managers to take immediate action if necessary. This is more focused on keeping the quality of output up to expectations. 3.
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This note was uploaded on 04/26/2011 for the course MGT 300 taught by Professor Mathys,nicholas during the Winter '08 term at DePaul.

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chapter 8 outline - Chapter 8 Organizational Control 1....

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