Organizational Control and Change

The process where managers monitor and regulate an organization's performance. This involves ensuring that activities are done efficiently and effectively to achieve organizational goals.

A formal system with target-setting, monitoring, evaluation, and feedback loops. It helps managers understand how well their strategies and structures are working.

One of the core functions of managers; it involves monitoring the performance of the organization and its members to ensure goals are being met efficiently and effectively.

Using output controls, managers focus on the results and outputs of the organization's work. They measure how much or how well something is produced.

Managers using behavior controls directly monitor and influence the actions and behaviors of members. They focus on ensuring that the right actions are being taken.

Organizational culture or "clan control" creates an environment where shared values and beliefs guide behavior. It encourages individuals to act in ways that are aligned with the organization's mission and values.

Organizational control is vital for navigating change. It provides managers with the knowledge and tools to adapt and adjust to new challenges and opportunities.

Effective control systems should be flexible enough to respond to changing needs, provide accurate information, and deliver timely data. This allows managers to make informed decisions.

Technology that helps information flow up and down the organizational structure and between departments.

Control systems analyze performance at each stage of transforming inputs into finished products or services.

Control that takes action before a problem arises.

Control that gives managers immediate feedback on the efficiency of the transformation process.

Control that uses information about customer reactions to adjust production.

Measuring the efficiency of how managers use resources to generate profits.

Control systems that focus on achieving organizational goals.

Control systems that focus on employee behavior and actions.

Indicates how effectively managers are utilizing assets to generate profit. A higher ratio signifies better efficiency.

A key financial metric that measures the return on investment generated by a project or business. Often expressed as a percentage.

A liquidity ratio reflecting the company's ability to pay short-term debts by converting existing assets into cash. A higher ratio indicates stronger liquidity.

A liquidity ratio indicating whether a company can settle short-term debts without needing to sell inventory. A higher ratio implies greater short-term solvency.

A leverage ratio that reveals the proportion of a company's assets financed through debt. A higher ratio indicates that the company is using more borrowed funds.

A leverage ratio indicating how many times interest charges can be covered by a company's earnings. A higher ratio signifies a stronger ability to meet interest obligations.

An activity ratio measuring how effectively managers are utilizing inventory. A higher ratio indicates faster stock movement and potentially better efficiency.

An activity ratio demonstrating how long, on average, a company takes to collect payments from customers. A shorter period indicates quicker cash flow.

A ratio that indicates how efficiently management transforms assets into sales, revealing the effectiveness of the organization's asset management practices.

A measure of a company's ability to generate profit from its assets. A higher ratio generally signifies more efficient use of assets.

A comprehensive system of rules and standard operating procedures that guide employee behaviour, establishing clear expectations for problem-solving and decision-making.

Control exerted on individuals and groups in an organization through shared values, norms, and expectations, fostering a sense of shared purpose and aligning behaviors with organizational goals.

A culture that encourages employees to adapt to changes and challenges, embrace new ideas, and continuously grow to achieve organizational goals.

A culture that resists change and lacks the motivation to adapt to evolving circumstances, leading to stagnation and potential decline over time.

A goal-setting process where managers and their subordinates collaboratively define specific objectives to be achieved, and periodically review progress towards those goals.

A framework for assessing overall performance across four key dimensions: financial, customer service, internal business processes, and organizational learning and growth.

The movement of an organization from its current state to a desired future state, aiming to increase efficiency and effectiveness.

The process where managers monitor and regulate an organization's performance to ensure activities are done efficiently and effectively to achieve organizational goals.

The process through which managers try to increase organizational members' abilities to understand and appropriately respond to changing conditions.

The process of comparing one company's performance on specific dimensions with the performance of other high performing organizations.

A fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do, and then move quickly to implement changes throughout the organization.

A gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change.

A formal system that helps managers understand how well the organization is working by setting targets, monitoring performance, providing feedback, and identifying areas needing improvement.

It involves adjusting the organization's approach based on feedback and analysis of current performance.

Managers recognize a problem, understand its source, and then define the ideal future state for the organization. Identifying obstacles helps in planning the change process effectively.

This step involves introducing the change, managing the implementation, and ensuring the change takes root within the organization.