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Lecture Principles of Management: Chapter 9 - Charles W.L.Hill, Steven L. McShane

Chapter 9 - Control systems. In this chapter, the learning objectives are: Discuss the attributes of a typical organizational control system; describe the different kinds of controls that are used in organizations; explain how different controls should be matched to the strategy and structure of an organization; outline the features of the balance score card approach to control metrics, and explain why it is useful; discuss informal or backchannel control methods. | chapter 9 Control Systems McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Discuss the attributes of a typical organizational control system. Describe the different kinds of controls that are used in organizations. Explain how different controls should be matched to the strategy and structure of an organization. Outline the features of the balance score card approach to control metrics, and explain why it is useful. Discuss informal or backchannel control methods. See Text Page: 206 Control System Control: The process through which managers regulate the activities of individuals and units. Standard: A performance requirement that the organization is meant to attain on an ongoing basis. Subgoal: An objective that, if achieved, helps an organization attain or exceed its major goals. Learning Objective 1: Discuss the attributes of a typical organizational control system. See Text Page: 208 A typical Control System Establish goals and standards Take corrective action Measure performance Provide reinforcement Variance between performance and goals and standards Compare performance against goals and standards Performance meets or exceeds goals and standards Learning Objective 1: Discuss the attributes of a typical organizational control system. See Text Page: 208 Disaster Plans Source: USA Today Snap Shots Learning Objective 1: Discuss the attributes of a typical organizational control system. Company Disaster Plans This slide presents the opinion of technology officers or Chief Information Officers of company. In a survey by CIO, 74% of these officers indicated that in their experience, their company’s disaster plans were effective. 14% indicated it was not effective and 7% indicated they did not even have a plan. Ask the students – how many of them have any type of plan? If something major were to go wrong, such as financial aspect, what contingencies do they have? What, if any, control systems | chapter 9 Control Systems McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Discuss the attributes of a typical organizational control system. Describe the different kinds of controls that are used in organizations. Explain how different controls should be matched to the strategy and structure of an organization. Outline the features of the balance score card approach to control metrics, and explain why it is useful. Discuss informal or backchannel control methods. See Text Page: 206 Control System Control: The process through which managers regulate the activities of individuals and units. Standard: A performance requirement that the organization is meant to attain on an ongoing basis. Subgoal: An objective that, if achieved, helps an organization attain or exceed its major goals. Learning Objective 1: Discuss the attributes of a typical organizational control system. See Text Page: 208 A typical Control System