Organization Control

I.  Organization Control includes any process designed to assure that organization plans are carried out the way they were designed.

      a.  Traditionally, control processes were primarily quantitative in nature.
               i.e.;  budgets, standard cost systems, market quotas

      b.  Thus, the duty for establishment and analysis of control system results developed primarily as an accounting function.

      c.  During the past decade, control systems have moved from strictly quantitative in nature to both quantitative and qualitative in nature.

              i.e.;  From performance bonuses based on bottom-line net income to efforts that generate increased satisfaction of customers with the quality of products or services

II.  The contemporary attitude of control and control systems is that such control efforts should motivate people toward desired organizational behavior and not promote dysfunctional behavior.

                               Traditional Outlook             1990s Through 21st Century

What is measured       Meeting Budget                    Customer Satisfaction
                                  Production Efficiency           New Product Development
                                  Inputs                                   Outcomes
                                  Quantitative Performance     Quantitative and
                                                                                Qualitative Performance

Who is measured         Individuals                           Teams (Groups)
                                   Functions                              Cross-Functional Efforts
                                   Responsibility Centers

How rewarded             Efficiency                              Quality
                                   Profits                                   Innovation
                                   ROI                                      Creativity
                                                                                Overall Company

Focus                           Internal                                Macro-Environment
                                                                                Industry Environment