Samenvattingen Management
Control
Ouchi – Design of organizational control mechanisms
3 mechanisms to deal with management control
- Markets: have ability to precisely measure and reward individual contribution. Market is a
very efficient mechanism of control. In a market, prices convey all of the information
necessary for efficient decision-making.
- Bureaucratic: evaluation with a socialized acceptance of common objective. The information
necessary for task completion is contained in rules; these may be rules concerning processes
to be completed or rules which specify standards of output or quality.
- Clans: complete socialization process which effectively eliminates goal incongruence
between individuals. Informal social system.
Basically, there are two ways in which an organization can achieve effective people control
Searching for and selecting people who fit its needs exactly
Take people who do not exactly fit its needs and put a managerial system to instruct,
monitor, and evaluate them
The choice between these approaches depends on the associated costs. Selecting individuals with
rare skills incurs high search and acquisition costs, but once hired, they may require less supervision.
In contrast, training and managing individuals who do not initially possess the required skills incur
different costs but may offer flexibility in accommodating a diverse workforce. Selection-based
control tends to result in high commitment due to internalized values, while explicit monitoring and
correction (unselective) may lead to compliance but less enthusiasm. In general, the more obvious
and explicit the measurement, the more noxious it is to employees and thus, the greater the cost to
the organization of employing such methods.
, If it is not possible to measure either behaviour or outputs and it is therefore not possible to
"rationally" evaluate the work of the organization (output control) what alternative is there but to
carefully select workers so that you can be assured of having an able and committed set of people,
and then engaging in rituals and ceremonies (clan control) which serve the purpose of rewarding
those who display the underlying attitudes and values which are likely to lead to organizational
success.
Many organizations, particularly those in relatively stable manufacturing industries, fit the
requirements for behaviour control or for output control. Control mechanisms of the market or
bureaucratic variety can be designed into such organizations. Organizations in the public sector, in
service industries, and in fast-growing technologies may not fit these specifications and perhaps
should have cultural or clan forms of control instead.
Many organizations lack the precise transmission of control from top to bottom and do not have a
single set of integrated goals. Instead, subunits within organizations are described as being loosely
joined, influenced more by their environment than by managerial strategy.
Control
Ouchi – Design of organizational control mechanisms
3 mechanisms to deal with management control
- Markets: have ability to precisely measure and reward individual contribution. Market is a
very efficient mechanism of control. In a market, prices convey all of the information
necessary for efficient decision-making.
- Bureaucratic: evaluation with a socialized acceptance of common objective. The information
necessary for task completion is contained in rules; these may be rules concerning processes
to be completed or rules which specify standards of output or quality.
- Clans: complete socialization process which effectively eliminates goal incongruence
between individuals. Informal social system.
Basically, there are two ways in which an organization can achieve effective people control
Searching for and selecting people who fit its needs exactly
Take people who do not exactly fit its needs and put a managerial system to instruct,
monitor, and evaluate them
The choice between these approaches depends on the associated costs. Selecting individuals with
rare skills incurs high search and acquisition costs, but once hired, they may require less supervision.
In contrast, training and managing individuals who do not initially possess the required skills incur
different costs but may offer flexibility in accommodating a diverse workforce. Selection-based
control tends to result in high commitment due to internalized values, while explicit monitoring and
correction (unselective) may lead to compliance but less enthusiasm. In general, the more obvious
and explicit the measurement, the more noxious it is to employees and thus, the greater the cost to
the organization of employing such methods.
, If it is not possible to measure either behaviour or outputs and it is therefore not possible to
"rationally" evaluate the work of the organization (output control) what alternative is there but to
carefully select workers so that you can be assured of having an able and committed set of people,
and then engaging in rituals and ceremonies (clan control) which serve the purpose of rewarding
those who display the underlying attitudes and values which are likely to lead to organizational
success.
Many organizations, particularly those in relatively stable manufacturing industries, fit the
requirements for behaviour control or for output control. Control mechanisms of the market or
bureaucratic variety can be designed into such organizations. Organizations in the public sector, in
service industries, and in fast-growing technologies may not fit these specifications and perhaps
should have cultural or clan forms of control instead.
Many organizations lack the precise transmission of control from top to bottom and do not have a
single set of integrated goals. Instead, subunits within organizations are described as being loosely
joined, influenced more by their environment than by managerial strategy.
