Principles of Management Lecture 4 - Organisational Control, Change and Culture

Formal, target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively.

• Feedforward control (anticipate problems before they occur)
  Input stage
   
• Concurrent control (manage problems as they occur)
  Conversion stage
   
• Feedback control (manage problems after they arise)
  Output stage

• Step 1: Establish the standards of performance, goals, or targets against which performance is to be evaluated
   
• Step 2: Measure actual performance
   
• Step 3: Compare actual performance against chosen standards of performance
   
• Step 4: Evaluate the result and initiate corrective action if the standard is not being achieved

• Output Control
• Behavior Control
• Clan Control

• Financial measures of performance
• Organizational goals
• Operating budgets

Realtor Percentages, Grade Point Averages, Amount of Tips for Servers

• Direct supervision

• Management by objectives

• Rules and standard operation procedures

Strict Attire Requirements, Casual Fridays, Grading Attendance, Bathroom Breaks

• Values
• Norms
• Socialization

• Organizational environment
• Technology
• Human Resources
• Strategy

Determine the design of organizational structure

• Skill variety
  Employee uses a wide range of skills
   
• Task identity
  Worker is involved in all tasks of the job from beginning to end of the production process
   
• Task significance
  Worker feels the task is meaningful to the organization
   
• Autonomy
  Employee has freedom to schedule tasks and carry them out
   
• Feedback
  Worker gets direct information about how well the job is done

An organizational structure composed of all the departments that an organization requires to produce its goods or services

Managers place each distinct product line or business in its own self- contained division.

Divisional managers have the responsibility for devising an appropriate business-level strategy to allow the division to compete effectively in its industry or market.

Divisions are broken down by geographic location

The divisional structure is a type of organizational structure that groups each organizational function into a division. ... Each division contains all the necessary resources and functions within it to support that product line, geographic location, or market

Groups divisions according to the particular kinds of customers they serve.

Allows managers to be responsive to the needs of their customers and act flexibly in making decisions in response to customers’ changing needs.

Matrix management is an organizational structure in which some individuals report to more than one supervisor or leader, relationships described as solid line or dotted line reporting.

With a product team structure, you surround a product with the professionals necessary to roll out the product. The staff report to the product manager, with secondary reporting to a functional manager. ... Both of these managers have authority over the staff and resources working on the product.

A tall organizational structure means that management is broken down into several layers, with executives on top and normal employees on the bottom.

A flat organization refers to an organization structure with few or no levels of management between management and staff level employees. The flat organization supervises employees less while promoting their increased involvement in the decision-making process.

• Evolutionary Change
  Need to improve operations
   
• Revolutionary Change
  Need to respond to new events

Managers must balance the need for an organization to improve the way it currently operates and the need for it to change in response to new, unanticipated events.

Kurt Lewin's Force-Field Theory argues that organizations are balanced between forces for change and resistance to change, has a related perspective on how managers can bring change to their organization.

• Assess the need for change
  - Recognize the problem
  - Identify the source of the problem
   
• Decide on the change to make
  - Decide on what the organization's ideal future state would be
  - Identify obstacles to change
   
• Implement the change
  - Decide whether change will occur from the top down or from the bottom up
  - Introduce and manage change
   
• Evaluate the change
  - Compare prechange performance with postchange performance
  - Use benchmarking

• Characteristics of organizational members
• The employment relationship
• Organizational structure
• Organizational ethics