Behavior in Organizations

Cases

Rendell Notes on
Nucor
Company Matrix
Corporation B
 Behavior in Organizations

MCS influence human behavior .

Good MCS influence behavior in a Goal Congruent

manner and ensure that actions to achieve personal
goals also help to achieve the organizational goals
 Goal Congruence

Goal Congruence means that ,

insofar as is feasible,
the goals of an organization's
individual members should be
consistent with the goals of
the organization itself
 Goal Congruence

In a Goal Congruence process, the

actions people are led to take in
accordance with their perceived self-
interest are also in the best interest
of the organization
Informal factors that influence Goal Congruence

External Internal
Factors Factors
Informal factors that influence Goal Congruence

External
Factors

•Work Ethics
•Attitudes
•Loyalty
•Pride in doing job
•Diligence
•Type of industry
 Informal factors that influence Goal Congruence

Internal
Factors

Management Styles

Culture Attitude of CEO

Attitudes of Subordinates
Attitudes of Superiors
Common beliefs
Shared Values
Norms of Behavior
Assumptions
Informal Perception &
Organization Communication
Line Management Channels of
Communication Communication
Relationship Conflict of Interest
Information System
 The Formal System

Rules

Task
System Control
Physical Manuals
Safeguards Systems
Control
The Formal System

Rules

•Formal Instructions
•Job Descriptions
•Standard Operating
Procedures
•Manuals
•Guidelines
•Prohibitions
 The Formal System

Rules

•Security Guards
•Locked Showrooms
Physical •Vaults
Control •Computer Passwords
•Television Surveillance
 The Formal System

Rules

•Written Instructions
Manuals
•Procedures
•Practices
 The Formal System

Rules

• Cross Checking
•Authorization
System •Safeguarding Assets
Safeguards •Internal Control
•Auditing
 The Formal System

Rules

Task
Control •Automation
Systems •Responsibilities
•Checking
•Reviewing
•Reporting
 Formal Control Process
Other
Goals and Rules Information
Strategies

Reward (Feedback

Strategic Budgeting Responsibility Report Performance

Planning Centre Actual Versus Measurement
Performance Plan

Measurement

Review Corrective
Action Feedback Communication
Types of Organizations
 Functional Structure

CEO
Staff

Production Marketing
Manager
Manager

Staff
Staff

Manager Manager Manager Manager Manager Manager

Region Region Region
Plant 1 Plant 2 Plant 3 A B C
 Business Unit Structure

CEO
Staff

Manager
Manager Manager Business
Business Business Unit C
Unit A Unit B
Staff
Staff Staff

Plant Marketing
Manager Manager Plant Marketing Plant Marketing
Manager Manager Manager Manager
 Matrix Organization

Functional Project
Manager Manager
A X

Project
Functional
Manager
Manager
y
B

Functional Project
Manager Manager
C Z
 Functions of the Controller

•Designing and operating information & Control Systems

•Preparing FStatements and Freports

•Preparing, Analyzing, and interpreting financial reports

•Supervising internal auditing and accounting control

•Developing personnel in the controller Organization

 Business Unit Controller

Dotted line Relationship

Here the controller reports to BU Manager, who is

immediate boss, and ultimate authority in hiring, training,
transfer, compensation, promotion, and firing…
 Business Unit Controller

Solid line Relationship

Here the controller reports to Corporate Controller who is

also boss of the business unit controller and having
authority for hiring…
 Alternative Controller Relationship
Dotted Line Solid Line

Corporate
Corporate
Controller
Controller

Business Business
Unit Unit
Manager Manager

Business Business
Unit Unit
Controller Controller