Understanding Control Theories

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Questions and Answers

Which perspective acknowledges that control can create ongoing tension between controllers and those being controlled?

  • Risk-control theory
  • Critical theory
  • Valuation theory
  • Control as a conflict factor theory (correct)

Which approach to control emphasizes adapting to changing circumstances with self-regulation and continuous learning?

  • Bureaucratic control
  • Empirical control
  • Modern control (correct)
  • Traditional control

What is the main focus when control is viewed from a 'complex' theory perspective?

  • Applying rigid rules and procedures
  • Fostering a mechanistic approach
  • Establishing clear hierarchies of authority
  • Understanding dynamic interrelations (correct)

What does the 'anarchist theory' suggest about control in organizations?

<p>Individuals should act freely to achieve organizational goals. (D)</p> Signup and view all the answers

In administrative theory, what does control primarily ensure?

<p>Compliance with strategic plans (A)</p> Signup and view all the answers

How do the theories of organization and administration view control, drawing from Foucault's ideas?

<p>As an exercise of power through oversight and discipline. (A)</p> Signup and view all the answers

Which theory posits that the effectiveness of control depends on the quality, fluidity, and transparency of information?

<p>Informational theory (D)</p> Signup and view all the answers

How does the classical school of administration view the role of control?

<p>Control involves overseeing employee performance to optimize outputs. (D)</p> Signup and view all the answers

According to the 'materialistic theory of control,' what underlies the concept of control?

<p>The class struggle between laborers and owners (D)</p> Signup and view all the answers

Among the stages of control, according to Blanco I., What involves setting benchmarks for assessing satisfactory performance?

<p>Establishing performance standards (C)</p> Signup and view all the answers

What change does the text suggest regarding the focus of accounting information?

<p>From tangible to intangible values (A)</p> Signup and view all the answers

What does the text imply about how organizations should approach control?

<p>Organizations should develop an integrated view that incorporates unique factors. (A)</p> Signup and view all the answers

What element is essential to assess when considering a general theory of control?

<p>What factors are applied to obtain data (B)</p> Signup and view all the answers

What does the text suggest about organizational control systems?

<p>They should accommodate the complex and dynamic reality of their internal and external environments. (B)</p> Signup and view all the answers

What concept is associated with the 'humanistic approach' to control?

<p>Control as an activity with implications for human relationships (A)</p> Signup and view all the answers

From the viewpoint of accounting, how has control historically been tied?

<p>With recording financial transactions (B)</p> Signup and view all the answers

How might a company apply a more integrated approach to organizational control?

<p>By ensuring alignment between the prioritized aspects of the organization and the controls used. (D)</p> Signup and view all the answers

The text mentions a study on EPM that found a difference in control approaches. Which statement best summarizes this difference?

<p>Formal institutional approaches to control differed from the beliefs of EPM representatives (A)</p> Signup and view all the answers

How does the text describe control from an engineering perspectve?

<p>Regulating energy to match a target (D)</p> Signup and view all the answers

What do the various interpretations of control have a relation with?

<p>Whether someone decides on actions vs. how well someone examines an act (B)</p> Signup and view all the answers

Flashcards

Definition of Control

The function that monitors and corrects organizational performance.

Organic Theory

Living organisms self-regulate to meet their needs.

Mechanical Theory

Machines have control devices to achieve specific goals.

Causal Theory

Control is the result of actions and has consequences.

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Dynamic Theory

Focuses on diverse flows within the organization that need monitoring.

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Functionalist Theory

Control supports administrative and operational tasks.

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Administrative Theory

Control is a tool for management to guide the organization.

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Anarchist Theory

Control requires each member to do what is necessary to achieve the objectives without restrictions.

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Informational Theory

The theory where the effectiveness of control depends on the information system.

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Systemic Theory

Control is a system implemented on organizations for goal achievement.

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Critical Theory

Control detects deviations and drives transformation.

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Humanistic Approach

Control is essentially a human activity that affects human relations.

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Valuation Theory

Control should add value to the organization.

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Risk-Control Theory

The theory where the main role of control is preventive.

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Control as Conflict Factor

Tension and conflict often arise between those who control and those who are controlled.

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Complexity Theory

Recognizing that organizations are complicated is essential for the practice of control.

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Precursors of Administration

Control is the intervention in reality to achieve a goal.

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Classical Theory

Control involves monitoring subordinates through supervisors.

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Human Relations

Control as an element to ensure the work environment will optimize worker output.

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Systems Theory

Control as a feedback loop.

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Study Notes

  • The term "control" is interpreted differently, lacking precision empirically but highly complex scientifically, and practically presenting connotations of crisis in developing countries due to corruption and inefficiency.
  • Control theories are related to what to control, why control, who controls and how, the purpose of control, method, context and timing.

Control Theories

  • Organic Theory: entities self-regulate to meet their needs.
  • Mechanical Theory: machines' and systems' controls to achieve a purpose.
  • Causal Theory: control is the outcome of actions, producing consequences.
  • Dynamic Theory: Control arises from diverse organizational flows, human, technological, capital etc, needing verification for normal operation.
  • Functionalist Theory emphasizes it is a function developed in line with administrative and operational functions in organizations.
  • Materialistic Theory explains control as a struggle between capitalists and workers.
  • Empiricist Theory says control work is shaped by the experience of those who develop them.
  • Ethical Theory posits that control relies on ethics within organizations.
  • Administrative Theory: Control is the adjustment made by a director to fulfill organizational goals.
  • Anarchist Theory claims control means allowing each individual to do what's needed without restrictions to achieve the organization's goals.
  • Psychological Theory: Influential aspects affecting people impact their psyche, shaping behaviors and manipulation.
  • Disciplinary Control Theory is framed a context of in vigilance and punishment.
  • Bureaucratic Theory justifies authoritarian treatment to maintain worker discipline for production standards.
  • Institutional Theory says that the impact of the environment on control activities must be recognized.
  • Informational Theory says control effectiveness relies on the information system and its signals.
  • Cognoscitive Theory says all discipline and knowledge controls the body, where science controls technique.
  • Social Theory says that control is an agreement among groups, formal or informal.
  • Systemic Theory claims control is implemented on organized systems to achieve a goal.
  • Critical Theory detects deviations, watches actions, creating clashes between controllers and controlled.
  • Humanistic Approach states control is human-led, affecting human relations.
  • Evaluative Theory explains that control adds value to the organization, it must be effective.
  • Risk-Control Theory says that control is crucial as a preventive measure, because all activity has risk.
  • Control as a Conflict Factor Theory says can cause tensions between controllers and controlled because no one likes being controlled.
  • Complex Theory states organizational control cant be simplified to functions, but a system integrating diverse elements.

Control in Organizational Theories

  • Management includes diverse control concepts rooted in management practices.
  • Control has been reduced to monitoring objects to correct deviations from traced plans.
  • Administration roles include planning and directing.
  • The administrative functions of planning, organizing, directing, and controlling are developed in organizations, particularly by Henry Fayol.
  • Franco and de Mendonca identify diverse control approaches with elements like objectives, standards, and intervention.
  • Classical administration sees control as intervening to achieve a goal.
  • Neoclassical emphasizes monitoring formalized processes for coordinated objectives.
  • Bureaucracy focuses in supervising for predictable organizational behavior.
  • Human relations focuses on conditions of the workers
  • Cybernetic control involves the interrelation of variables to maintain harmonic operations.
  • Strategic administration means strategically planned intervention.
  • Contingency approach sees control as dependent on the definition of situational factors.
  • Organizational activity is often reduced to inspection, examination, verification, and vigilance.
  • Theories focus on control as power exerted through surveillance and intervention to achieve goals.
  • Organizational control has been understood through metaphors like the body or prison.
  • Control has been conceived as correction, fiscal oversight, and culture, now often presented as quantitative, indicator-based monitoring.
  • Corporate social responsibility is increasingly relevant to organizational control, especially internationally.
  • Global information overload is seen as a challenge affecting social participation and risk management.
  • Lack of historical, theoretical, and practical acknowledgment impacts perceptions around the world.
  • Studying organizational control requires assessing shared beliefs, collective views, and controller practices.

Essentials to Organizational Control

  • Transversal themes in organizational control include fraud, professional ethics, and process integrity.
  • Studying organizational control requires comprehensive knowledge of regulation, inspection, supervision, and warning systems.
  • Effective controls apply to all processes and key attributes of an entity’s financial and socio-environmental evolution.
  • Total surveillance, social control, and risk management are emerging as responses to complex problems.
  • Control should solve obscurity and information as solution of uncertainty.
  • Real time info should meet needs with more value to the info system.
  • Future info, that can simulate future behavior
  • Value-based info and not cost
  • Global data includes not financial and financial information
  • Extract synthetic data tailored to get element analysis

Simplified Control Function

  • Defined by Blanco I. (1997)
  • In 4 actions
  • Planning/Standars- action
  • Compares results with standards
  • Implement a action for standards
  • Implementation of action

Wider Version of Control Function

  • 12 instances
  • Initial State- original system control
  • Define norms and parameters
  • Measurements through engineer sensors
  • Sciences- defined with indicators
  • Data is measured
  • Info Validation
  • Comparatives results (vs expectatives)
  • Info Analysis
  • Situation values

Perspectives of control

  • Blanco Illescas defines classical control as verification and penal and anglosaxon ideas of guides to make corrections and improvements
  • Japanese way is activities that are necesary for long term objetives
  • There are types
    • From location
    • From areas
    • From dimension
    • The level
    • The time
    • Emphasis
    • Permanence
    • Sources

Info Tendencies for control

  • Segmentations and Integrations
  • Past info to future
  • Impacts
  • Manage from regulatory information etc.

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