The formalize operating practices in the organization
provide it with a framework for controlling the work behaviour
and work expectations of employees. Written rules and regulations
inherent in an organizational design do not ensure coordinated effort and goal
accomplishment to ensure these outcomes; managers must create co-ordination
and control.
Defenition:
Is the set of mechanisms used to link the actions of
organizational subunits to achieve a pattern of desired outcomes. When an organization is small, the chain of
command can ensure desired outcomes.
With growth, the hierarchy becomes overloaded and the mangers seek other
ways to link work units to sustain organizational effectiveness.
Ø Turbulent business
environments create higher co-ordination needs
Ø Stable environments
require fewer methods for co-ordinating the work of subunits.
Ø Strengthen link
between organization levels.
Ø Decrease task
uncertainty
Ø Tools
·
Use teams and task-forces
·
Direct supervision
·
Standardized work process
·
Standardized outputs
·
Performance Appraisal
·
Create a management information system
Ø The orderly
processing of the organizations workflow
Ø Fewer work
exceptions are encountered. Causing work units to integrate more effectively
Ø Mechanisms
·
Use direct contact
·
Use liaison roles
·
Use horizontal task-forces
·
Use permanent teams to manage recurring workflow problems
Co-ordination is concerned with linking together the actions of
employees and their work units throughout the organization.
Ø Control is the
set of mechanisms used to keep action and outcomes within predetermined limits.
Ø Controls deals
with setting work standards, measuring results against plan and initiating
corrective action.
Ø Management
control system can focus on methods of doing work, i.e. process control
objective setting.
Ø Standardization
of task performance.
Ø Managers– as tools
for achieving economic efficiency by reducing marginal costs of production
Ø Employee -
mindless formalization (standardization and specialization)
Ø Organizations
that still rely on Process control have become rigid and inflexible.
Ø Placid business
environment, Acceptable
Ø Turbulent
Environment, severely limits organizational flexibility
Ø Internal process
control applied by self-directed teams creates a number of benefits
1.
Creation of meaningful work standards
2.
Accurate and continuous measurement of performance
3.
Specification of employee training and development needs
4.
Clear team basis for distributing performance or merit-based rewards
5.
Link employees and customers
6.
Sound basis for taking corrective action.
Ø
Management effort to create unnecessary, external process control can
result in the following problems:
1.
Lack of patience
2.
Across the Board cuts
3.
Confusing Documentation with action
4.
Vague and Unrealistic Expectations
5.
Panic
6.
Escalating Standards
Ø Can be used to
gain output control
Ø Shapes
Organisational culture in terms of setting ambitious goals, high standards, and
focus on long run results instead of short cuts.
Ø Teamwork oriented
Ø Comprehensive
process
Ø Numerous
intrinsic rewards
Ø Ensure that
managers
1.
Set specific measurable goals,
2.
Monitor progress toward goals,
3.
Receive rewards based on accomplishments
Ø Operational terms
–relies on superior-subordinate meetings
1.
Establish goals
2.
Receive periodically goal activities and results
3.
Resolve conflicts and take corrective actions.
Ø 3 Critical
success properties
1.
Knowledge of what is expected
2.
Knowledge of results
3.
Supervisor who provide work-oriented feedback vs. personality-oriented.
Ø Characteristics
of MBO System
1.
Work unit establish goals and action plan
2.
Discuss work unit goals ensure everybody understands them
3.
Employee establish own action plan to achieve goals, Manager
participate in 1-on-1 make specific and quantifiable.
4.
Superior and subordinate jointly establish outcome criteria for
assessing success
5.
Superior conducts periodic formal and informal feedback.
6.
System documented with all goals on paper
7.
Goals ‘cascade’ down the organization. – More specific and quantified at
lower organization levels.
Ø Overemphasis on
goal-setting can lead to problems:
1.
Tunnel vision
2.
Degenerate into a ‘paper chase’
3.
Superiors ‘either punish or reward’ mentality regarding results
achieved.
4.
Collaboration lost if employees have too many goals.
Organisational designer
must balance the need for process control against results oriented control.