Organizational Control and Change: Learning Objectives Quiz

Define organizational control, and explain how it increases organizational effectiveness.

Describe the four steps in the control process and the way it operates over time.

Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.

Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.

Explain how organizational culture or clan control creates an effective organizational architecture.

Feedforward Control: Control that allows managers to anticipate problems before they arise. Concurrent Control: Give managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise. Feedback Control: Control that gives managers information about customers’ reactions to goods and services so that corrective action can be taken if necessary.

Mechanisms of control

Profit Ratios: Measures of how efficiently managers convert resources into profits. Return on investment (ROI). Liquidity Ratios: Measures of how well managers protect resources to meet short term debt—current and quick ratios. Leverage Ratios: Measures of how much debt or equity is used to finance operations: debt-to-asset and times-covered ratios Activity Ratios: Measures of how efficiently managers are creating value from assets: inventory turnover, days sales outstanding ratios.

Output control

Goals should be specific and difficult but attainable.