I. Organization Control includes any process designed to assure that organization plans are carried out the way they were designed. a. Traditionally, control processes were primarily quantitative in nature. i.e.; budgets, standard cost systems, market quotas b. Thus, the duty for establishment and analysis of control system results developed primarily as an accounting function. c. During the past decade, control systems have moved from strictly quantitative in nature to both quantitative and qualitative in nature. i.e.; From performance bonuses based on bottom-line net income to efforts that generate increased satisfaction of customers with the quality of products or services II. The contemporary attitude of control and control systems is that such control efforts should motivate people toward desired organizational behavior and not promote dysfunctional behavior. Traditional Outlook 1990s Through 21st Century What is measured Meeting Budget Customer Satisfaction Production Efficiency New Product Development Inputs Outcomes Quantitative Performance Quantitative and Qualitative Performance Who is measured Individuals Teams (Groups) Functions Cross-Functional Efforts Responsibility Centers How rewarded Efficiency Quality Profits Innovation ROI Creativity Overall Company Performance Focus Internal Macro-Environment Industry Environment Internal
