What Is Organizational Control?


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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      

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