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11 Cards in this Set
- Front
- Back
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3 types of orgs |
1. functional 2. bus unit 3. matrix |
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To eval a mgt control system: ask 2 questions |
1. what actions does it motivate people to take in their own self- interest? 2. are these actions in the best interest of the org? *good if influences behavior to be goal congruent |
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The formal control system: 2 parts |
1. Rules 2. Mgt control system (formal)- tail shouldn't wag the dog |
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Functional Org: Advantage and 4 Disadvantages |
Advantage: Efficiency (more specialized Disadvantages: 1. hard to determine effectiveness of each functional mgr 2.Probs resolved @ top even if happens at lower level 3. inadequate for a firm w/ diversified products 4. creates silos for each function, prevent cross coordination w/ functions |
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Alternative Controller Relationships |
Solid line- bu controller to corp controller (seen as a spy) Dotted line - bu controller to bu manager (not as objective) |
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4 Factors that influence goal congruence |
1. culture 2. mgt style 3. informal org 4. perception and comm |
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Types of Rules (formal instructions and controls) |
*guidelines *positive requirement *prohibitions *rules that should never be broken |
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Business Unit Advantages (3) |
1. gives mgrs training in general mgt 2. bus unit closer to the market 3. mgrs can react to threats & opportunities in a timely manner |
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Business Unit Disadvantages (4) |
1. Duplication of work 2. disputes could arise between bus units 3. skilled specialists in certain functions are in short supply 4. disputes between bus unit personnel & headquarters staff |
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Rules of Formal Control System (4) |
1. Physical Controls 2. Manuals 3. System Safeguards 4. Task Control Systems |
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Headquarter's Duties (4) |
1. Obtain funds and distribute resources 2. approve budgets, hire/ fire, eval performance 3. establish the charter of each bus unit 4. establish comp wide policies ex. ethics |
