MGT601 Week 6 Discussion 1

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University Of Arizona *

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601

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Management

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Nov 24, 2024

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Organizational Control Process [NACE: 1, 6, 8]. [WLO:4] [CLOs: 1, 2, 3, 4, 5] Prior to participating in this discussion forum read the following chapters from the required textbook: Chapter 5 discusses regional and global markets for business. It also discusses the management of those markets. Chapter 15 discusses the use of control systems and processes within organizations. Chapter 16 focuses on operations management and supply chain management. Based on the information presented in the readings, Analyze the four steps of the control process and explain how each step contributes to the control function. Describe the three types of controls. How can the effectiveness of controls be assessed in an organization? Is this assessment different for a global organization? Guided Response: Due by Day 7 . In your response, please include detailed information on the four steps of the control process. Also, review the content on budgets and properly incorporate it into your response. Respond to two of your classmates’ posts. Analyze their discussions by agreeing, disagreeing, or adding other ideas to strengthen or enhance the perspective presented in their initial posts.

Analyze the four steps of the control process and explain how each step contributes to the control function. The organizational control process allows management the ability to assess where the organization is relative to where they expect to be which helps organizations adapt to changes, limits mistakes, helps deal with complexities and minimizes cost (Bierman et al., 2023). The four steps of the control process according to Bierman, Ferrell and Ferrell (2023) are as follows:  Establishing performance standards: Involves the process of setting clear, realistic targets that can be easily measured and align with the organizational strategy.  Measuring performance: A continual process for management to monitor and measure the activities that are being controlled.  Comparing performance against standards: Using the results from the measuring performance step, compare this to the established performance standards to identify possible deviations.  Evaluating and taking corrective action: If deviations are found in the third step, corrective action must be performed by either changing the standards, correcting the deviation, or maintain the status quo. Describe the three types of controls. The three forms of management control are bureaucratic, clan, and organizational control (Bierman et al., 2023). Bureaucratic control involves the indirect control of hierarchies that place strict rules, policies, and procedures in place to control organizational behavior. This type of control rewards employee compliance but limits employee input. Clan control is an informal structure that relies on self-control and informal group norms to create a more relaxed and focused environment. It rewards group performance and encourages extensive employee input (Bierman et al., 2023). Organizational control guides all organizational activities and determines where bureaucratic control and clan control will best influence performance to obtain organizational goals. How can the effectiveness of controls be assessed in an organization and is this assessment different for a global organization? When assessing the effectiveness of controls, managers should look for signs of inadequacy of the control system by; identifying the amount of resistance to control; determining if objectives are being met based on the control standards; deciding if control was even needed for improving performance; and if organizational losses occur, determine if they are being caused from a decline in performance (Bierman et al., 2023). Managing the control process should be done on a constant basis so that corrective action can be implemented if inadequacy occurs. This assessment would be different for a global organization based on

Hofstede’s cultural dimensions theory that greatly impacts the global business environment (Bierman et al., 2023). For example, Hofstede’s cultural dimension of individualism/collectivism explains how certain cultures prefer to work as individuals whereas other cultures prefer to work in groups. Power distance and masculinity/femininity cultural dimensions would have a significant impact on control and how well it would be received. These cultural values would need to be considered when determining the type of control that would be most effective. References Bierman, L., Ferrell, O. C., & Ferrell, L. (2023). Management: Principles and applications, custom edition (4th ed.). Academic Media Solutions.

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MGT601 Week 6 Discussion 1

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