Organizational control and changes.

Index
Cover
Index
Objectives
Presentation
Conclusion

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Identify the organizational control and describe the

control process stages.
Identify the mainly results controls and behavior
controls as well as comment their advantages and
disadvantages.
Expose the importance of having a balance
between control and change within an organization.

WHAT IS ORGANIZATIONAL CONTROL ?

The process by managers monitor and regulate how

efficiently an organization and its members conduct
the activities required to achieve organizational goals
.

PURPOSE

Provide administrators a means to lead and motivate

subordinates so that they routed their work to the
achievement of organizational goals and provide
administrators with feedback on how well they are
performing an organization and its members.

CONTROL SYSTEM

A control system contains measures or standards of

comparison that allow administrators to assess
efficiency that produces goods and services which
can create a competitive advantage over the
competition.

PROCESS CONTROL

Step 1: Establish performance standards, goals or

objectives against which performance will be
compared.
Step 2: measurement of actual performance
two things are evaluated:
Actual results resulting from the conduct of its
members
behaviors in themselves
Step 3: Comparing actual performance with
performance standards
Step 4.-Evaluation of results and initiation of
corrective actions (changes) if the rule is not
enforced.

Results control:

Set the goals that will

measure the efficiency,
quality, innovation and
responsiveness of the
customers.
Measure if the goals are
reaching all the levels in
the organization

Main mechanisms:

Financial measures
Organizational goals.
Operational budgets.

Financial performance measures:

Utility reasons
Liquidity reasons
Coverage reasons
Reasons of activity

Utility reasons:
Return on investment
(ROI)

Liquidity reasons:
Accomplishment short-term obligations

claims of creditors*

Coverage reasons:

Indebtedness
Risky credit

Reasons of activity
Inventory turnover
Average collection periods
(collection revenue to pay expenses)

Organizational goals:

All managers agree

Performance standards for divisions and functional
areas
The most direct and difficult goals are the best ones

Operation budget

How administrators use resources to achieve goals

Problems:

SENSITIVE

Organizational change

Improve
Operations

Respond to
the
environment

Determine need for

change

Change decision
Implementing
change
Change
assessment

Review

Organizational control

Results control

Behavior control

Organizational control
and change.

In this presentation we could understand the

importance of having a control within an
organization. Also, we mentioned its advantages and
disadvantages in the different kind of controls here
presented.
We can conclude that it is not easy to have a good
control and being prepared to have a change. We
could think they are opposites, but they are not. The
secret is to know when to use routines and when it
could be good to have a change taking care of the
results.