Control: Techniques for Enhancing Organizational Effectiveness

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Assignment Chapter 16 Abstract Control: Techniques for Enhancing Organizational Effectiveness 16.1 Managing for Productivity Seven challenges that pose a threat for a manager are managing for competitive advantage, diversity, globalization, information technology, ethical standards, sustainability, and personal happiness and life goals. The four major management functions which the manager needs to address are planning, organizing, leading and controlling for increasing the productivity in the employees. Organization’s survival and success depends on productivity. Productivity may be multiplied through the use of information technology, ERP system and control. 16.2 Control: When Managers Monitor Performance Control may be defined as a tool which is employed for the following six reasons: to adapt to change and uncertainty; to discover irregularities and errors; to reduce costs, increase productivity, or add value; to detect opportunities; to deal with complexity; and to decentralize decision making and facilitate teamwork. Setting standards, measuring performance, comparing results with standards and taking corrective actions are the four steps in the control process. 16.3 Levels & Areas of Control In applying the steps and types of control the manager needs to be aware of the following: at which level they are operating, the area for resources and style of control philosophy while implementing the types and steps of control. Strategic, tactical and operational are the three areas of control. Organizations can draw on six areas for resources which are physical area, human resource, informational resource, financial analysis, structural area and cultural area. 16.4 The Balanced Scorecard, Strategy Maps, & Measurement Management There are four indicators through which a balanced scorecard is designed: these include financial measures, customer satisfaction,

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