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Chapter 7
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autonomous work groups
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groups that operate without managers and are completely responsible for controlling work group processes, outputs, and behaviour
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balanced scorecard
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measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning
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behaviour control
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regulation of the behaviours and actions that workers perform on the job
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benchmarking
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the process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company
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bureaucratic control
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use of hierarchical authority to influence employee behaviour by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures
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concertive control
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regulation of workers’ behaviour and decisions through work group values and beliefs
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concurrent control
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a mechanism for gathering information about performance deficiencies as they occur, eliminating or shortening the delay between performance and feedback
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control
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a regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action, when necessary
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control loss
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situation in which behaviour and work procedures do not conform to standards
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customer defections
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performance assessment in which companies identify which customers are leaving and measure the rate at which they are leaving
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cybernetic feasibility
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the extent to which it is possible to implement each step in the control process
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degree of dependence
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the extent to which a company needs a particular resource to accomplish its goals
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economic value added (EVA)
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the amount by which company profits (revenues, minus expenses, minus taxes) exceed the cost of capital in a given year
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feedback control
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a mechanism for gathering information about performance deficiencies after they occur
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feedforward control
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a mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur
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normative control
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regulation of workers’ behaviour and decisions through widely shared organizational values and beliefs
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objective control
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use of observable measures of worker behaviour or outputs to assess performance and influence behaviour
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output control
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regulation of worker results or outputs through rewards and incentives
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quasi-control
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reducing dependence or restructuring dependence when control is necessary but not possible
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reducing dependence
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abandoning or changing organizational goals to reduce dependence on critical resources
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resource
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anything that can be used to fulfil a need or solve a problem
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resource flow
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the extent to which companies have access to critical resources
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restructuring dependence
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exchanging dependence on one critical resource for dependence on another
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self-control (self-management)
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control system in which managers and workers control their own behaviour by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement
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self-management
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See self-control
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standards
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a basis of comparison when measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory
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suboptimization
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performance improvement in one part of an organization but only at the expense of decreased performance in another part
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value
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customer perception that the product quality is excellent for the price offered
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