Ch 10 Organizational Control and Culture

1
Ch 10 Organizational Control and Culture Types
of Control
Output Stage
Conversion Stage
Input Stage
Concurrent Control Correct problems as they
occur
Feedforward Control Anticipate and
prevent problems
Feedback Control Ensure final results up to the
standards
2
Control Process Step 1 Establish standards -
Historical - Comparative - Engineering Step
2 Measure actual performance Step 3 Compare
actual performance against the standards Step
4 Evaluate the results and take corrective
actions
3

• Move HQ to new location
• Get closer to customers
• Reach out for more global control
• Boeing 3 core businesses
• Commercial aircrafts
• Military aircraft
• Communication satellites and space- based weapons

4

• Control Systems I. Output Control
• Financial Control
• - Fin. Statements basic numbers
• Balance sheet vs. income statement
• - Fin. Analysis financial ratios
• Liquidity/Activity/Profitability/Leverage
• - Fin. Audits checking numbers
• External audit vs. internal audit
• Organizational Goals
• Operating Budgets

5

• Control Systems II. Behavior Control
• Direct Supervision
• Management by Objective (MBO)
• A process of joint goal setting control
• between managers subordinates
• Bureaucratic Control
• by means of a system of rules SOPs

6
Control Systems III. Culture Clan Control
Visible Culture artifacts at the surface
level that an observer can hear, feel, or see -
Dress - Office Layout - Symbols/logos -
Slogans - Ceremonies Invisible Level of
Culture - Underlying beliefs, deeper
values - Shared understandings, and stories
7

• The shared values in high-performing firms
• Supporting 3 key constituencies
• Customers, employees, shareholders
• Credo of Johnson Johnson
• Corporate creed in Albertsons
• American Airlines corporate vision

8

• Core Values
• Duty, Honor, Country
• Thoroughness, market-testing, and ethical
  behavior.
• Hard work, honesty, neighborliness, and thrift.

9
Organizational Socialization The process
to learn the values, norms, and work
behaviors Organizational Rites - Rite of
passage To learn and internalize norms and
values - Rite of integration To build
common norms and values - Rite of enhancement
To motivate commitment to norm/values