This post features a project that I wrote on years ago talking about modern management and how organizations need to change their methods over time.
The relationship between organizing and controlling consists of understanding the level of each unit within each building block of competitive advantage. Organizing consists of developing an organizational strategy and structure that will allow an organization to use their resources most effectively to create value for consumers. Controlling is a process where managers monitor and regulate how efficiently and effectively an organization and members are performing to achieve organizational goals. In order to determine how efficiently an organization is using their resources, managers must be able to accurately measure how many units of inputs are being used to produce a unit of output, an example would be the production of a commercial vehicle. A control system would also consist of ways to measure the efficiency within production. Thus, controlling can increase the level of efficiency and innovation within an organization. (Jones & George, p. 311)
Output control involves the financial measures of performance, organizational goals and operating budgets. In contrast to output control, behavior controls consists of direct supervision, management by objectives and rules/standard operating procedures. The main difference between output control and behavior control is the ability to motivate individuals within an organization, behavior control focuses on shaping employees behavior to achieve organizational goals whereas output control focuses on the performance of an organization. An example on where behavior control would be more beneficial than output control would be when managers work together to determine appropriate and feasible goals for the organization, an action that involves participation. (Jones & George, p. 324)
It's important for managers to involve direct reports in the control process because empowering others is the best way to implement changes. This also gives an opportunity for managers to listen to their subordinates inputs about changes and hear their suggestions. A good example of this being implemented in an organization would be bottom-up change. This type of change is more gradual and involves participation from all level of employees and everyone stays informed with the changes that are being taken placed within the organization. Bottom-up change increases empowerments and reduces uncertainty and resistance to changes. (Jones & George, p. 333)
Jones, G. R. & George, J. M. (2020). Contemporary management, Eleventh edition. New York, NY: McGraw-Hill Education.
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