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MGMT 3202 Week 10 Notes

by: Kiera Howard

MGMT 3202 Week 10 Notes MGMT 3202

Marketplace > East Carolina University > Business > MGMT 3202 > MGMT 3202 Week 10 Notes
Kiera Howard
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About this Document

Chapter 8
Fundamentals of Management
Tiffany Woodward
Class Notes
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This 2 page Class Notes was uploaded by Kiera Howard on Wednesday March 23, 2016. The Class Notes belongs to MGMT 3202 at East Carolina University taught by Tiffany Woodward in Spring 2016. Since its upload, it has received 21 views. For similar materials see Fundamentals of Management in Business at East Carolina University.


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Date Created: 03/23/16
3/21 – 3/23 Chapter 8 Four Steps in Organization Control • The control process works a lot like setting the thermostat in your home. You set a preferred temperature and the thermostat constantly monitors the actual temperature, initiating changes if necessary Three Types of Control • Feedforward Control: proactive • Concurrent Control: active • Feedback Control: reactive Feedforward Control • An ounce of prevention is worth a pound of cure • Example: giving product specification to suppliers to make sure that inputs are high quality • Example: screening job applications and conducting several rounds of interviews to make sure the best people are hired Concurrent Control • Example: a computer system that alerts managers when a machine needs service or repair • Example: a testing area on an assembly line where products are checked to ensure they are assembled correctly and function properly Feedback Control • More expensive to correct problems at this point • Example: monitoring customer complaints and returns • Example: following up with customers after a purchase Output Control: Financial Measures • Financial measures provide objective ways to monitor organizational performance but they only provide information on what has already occurred Output Control: Goals • Evaluating whether or not goals were accomplished and why provides you with information regarding possible problems within the organization Output Control: Operating Budgets • You can easily evaluate a divisions ability to stay within the budget, maximize revenue, and/or reduce costs Problems with Output Control • Output control alone does NOT ensure organizational or individual performance • Example: a manager is expected to increase profitability in his/her division by 10% over the next year but that’s unattainable. The manager lays off employees or delays the purchase of critical equipment to ensure the goal is met Behavior Control: Direct Supervision • Direct supervision is the most potent and immediate form of behavior control • Problems are recognized quickly • Decreases motivation and is expensive (high salary costs) • Not feasible for all jobs/organizations Behavior Control: Bureaucratic Control • Creates standardized behavior • Reduces the likelihood of employee error an ensures consistency • Good for organizations with high turnover where employees need to be trained very quickly or when employees make many programmed decisions (fast food industry) • Not likely to encourage creativity, so probably not very useful in situations where innovation is important and/or employees must make many non-programmed decisions Behavior Control: Management by Objectives • Probably the most flexible form of behavior control and can be used in a variety of organizational settings • Participatory in nature since employees have input in goal setting and achievement • Consistent review/appraisal and feedback is critical for management by objectives Organizational Culture: Clan Control • Culture and clan control make regulation possible in situations when managers aren’t around for guidance • Clan control encourages employees to do the right thing for the organization


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