Chapter Nineteen

1
Chapter Nineteen

• Control Tools and Techniques

2
Chapter Objectives (1 of 2)

• Describe the four directions in which
  organizational communication can flow
• Identify five common communication networks
• Explain the purpose of a management information
  system (MIS)
• Differentiate between data and information
• Outline the key elements in designing an MIS
• Explain how MIS is changing the mangers job and
  communications in organizations
• Describe how budgets are used as control tools

3
Chapter Objectives (2 of 2)

• Explain what the various financial ratios measure
• Describe TQM control charts
• Explain how to determine the most economic order
  quantity
• Identify six performance appraisal methods
• List behaviors related to effective disciplining
• Describe the organizational factors that serve as
  indirect behavioral controls

4
Common Communication Networks
Wheel
All-channel
Chain
Y
Circle
Figure 20-1
5
Networks and Evaluation Criteria
NETWORKS
CRITERIA
CHAIN
Y
WHEEL
CIRCLE
ALL CHANNEL
Speed Accuracy Emergence of leader Morale
Moderate High Moderate Moderate
Moderate High Moderate Moderate
Fast High High Low
Slow Low None High
Fast Moderate None High
Table 20-1
6
Grapevine Pipelines
Y
F
D
H
E
G
J
D
I
J
C
C
E
C
B
I
B
K
K
G
H
I
B
A
D
N
x
F
F
C
D
J
A
A
A
A
Single strand (Each tells one other.)
Gossip (One tells all.)
Probability (Each randomly tells others.)
Cluster (Some tell selected others most typical.)
Figure 20-2
7
MIS Makes Data Usable
are organized into
Disorganized Data
Information
then screened for relevance and meaningfulness to
become
Information Usable for Manager
Figure 20-3
8
Steps in Designing an MIS
MIS
Design information processing
Aggregate the decisions
Analyze information requirements
Analyze the decision system
Figure 20-4
9
Matching Information Requirements with Managerial
Level
Characteristics of Information
Level of Aggregation
Time Horizons
Source
Scope
External
Very Wide
External
Future
Top Man- agement
Middle-level Management
Lower-level Management
Largely Internal
Narrow
Detailed
Historical
Figure 20-5
10
Sample Control Chart
Upper Control Limit
Weight of dry dog food bags (in lbs.)
Lower Control Limit
Date
4 5 8 9 10 1112 13 14 15 16 17 18 19 20 22 23 24
25 26 29 30 1
Figure 20-6
11
Control Chart using Three Standard Deviations as
Limits
Upper control limit
Mean
Lower control limit
Figure 20-7
12
Behavioral Control Techniques

• Selection.
• Goals.
• Job design.
• Orientation.
• Direct supervision.
• Training.
• Mentoring.

• Formalization.
• Performance appraisals.
• Organizational rewards.
• Organizational culture.

Table 20-3
13
Types of Discipline Problems and Examples of Each

• Attendance. Absenteeism, tardiness, abuse of
  sick leave.
• On-the-Job Behaviors. Insubordination, failure
  to use safety devices, alcohol, or drug abuse.
• Dishonesty. Theft, lying to superiors,
  falsifying information on employment
  applications.
• Outside activities. Working for a competing
  organization, criminal activities, unauthorized
  strike activities.

Table 20-4
14
Determining the Most-Economic Order Quantity
Total Costs
Costs
Carrying Costs
Ordering Costs
Most economic order size
0
Q
Quantity of Order
Figure 20-8