MCS Flashcards
Study management control systems (17 cards)
What are the main issues that MCS aims to prevent and solve?
Lack of direction
Lack of motivation
Personal limitations
What are the stages of management?
Objective setting
Strategy formulation
Management control
What are some control problem avoidance methods?
Automation
Risk sharing
Centralization
Activity elimination
What are three control systems ?
Action control
Results control
Personnel control
What are results controls ?
Involves rewarding individuals for good results (or punishing for poor results).
What are the elements of results controls ?
Defining performance dimensions
Measuring performance
Setting target
Providing reward
What are the conditions that must be met for results control to be effective ?
Managers must have knowledge of desired results
Managers must be able to measure results
Employees need to be able to influence results
What are pros of result controls ?
Behavior can be influenced while keeping autonomy
They result in greater motivation for employees
Inexpensive
What are the cons of result controls ?
Don’t give information about desired actions
Shift risk to employees
What are action controls ?
Controls that ensure employees perform or do not perform certain actions.
What are the conditions for action controls to be effective?
Managers know what actions are desirable
Managers can make sure desirable actions occur
What are some action controls?
Behavioral constraints
Pre-action reviews
Action accountability
Redundancy
What steps does action accountability need to succeed?
Define what actions are not acceptable
Observe actions
Reward or punish based on actions
What are the pros of action controls?
Direct
Creates organizational memory
Efficient way of coordination
What are the cons of action controls?
Only for routine jobs
May discourage creativity, innovation, adaptation
Can cause sloppiness
Can cause negative attitudes
Costly
What are some personnel controls?
Selection and placement
Training
Job design and provision of resources
What are culture controls?
Codes of conduct
Group based rewards
Intra organizational transfers
Physical and social arrangement
Consistency between culture and top management
