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Organizational Control and
Change
chapter eleven
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Learning Objectives
1. Define organizational control and explain how it increases organizational effectiveness.
2. Describe the four steps in the control process and the way it operates over time.
3. Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
4. Identify the main behavior controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
5. Discuss the relationship between organizational control and change, and explain why managing change is a vital management task
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Organizational Control
Organizational Control Managers monitor and regulate how efficiently
and effectively an organization and its members are performing the activities necessary to achieve organizational goals
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Three Types of Control
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Figure 11.1
Control Process Steps
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Figure 11.2
Three Organizational Control Systems
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Figure 11.3
Financial Measures of Performance
Activity ratios Show how well
managers are creating value from organizational assets
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Organization-Wide Goal Setting
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Figure 11.4
Management by Objectives
Management by Objectives (MBO) formal system of evaluating subordinates for their
ability to achieve specific organizational goals or performance standards and to meet operating budgets
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Clan Control
Clan Control The control exerted on individuals and groups in
an organization by shared values, norms, standards of behavior, and expectations.
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Organizational Control and Change
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Figure 11.5
Lewin’s Force-Field Theory of Change
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Figure 11.6
Evolutionary and Revolutionary Change
Evolutionary change gradual, incremental, and narrowly focused constant attempt to improve, adapt, and adjust
strategy and structure incrementally to accommodate changes in the environment
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Steps in the Organizational Change Process
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Figure 11.7
Implementing the Change
Top Down Change A fast, revolutionary approach to change in which
top managers identify what needs to be changed and then move quickly to implement the changes throughout the organization.
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