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How organisational,individual and department goals can be coordinated
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Behavior in Organizations
Cases
NucorCorporation B
RendellCompany
Notes on Matrix
Behavior in Organizations
MCS influence human behavior .
Good MCS influence behavior in a Goal Congruent manner and ensure that actions to achieve personal goals also help to achieve the organizational goals
Goal Congruence
Goal Congruence means that , insofar as is feasible, the goals of an organization's individual members should be consistent with the goals of the organization itself
Goal Congruence
In a Goal Congruence process, the actions people are led to take in accordance with their perceived self-interest are also in the best interest of the organization
Informal factors that influence Goal Congruence
ExternalFactors
InternalFactors
Informal factors that influence Goal Congruence
ExternalFactors
•Work Ethics•Attitudes•Loyalty•Pride in doing job•Diligence•Type of industry
Informal factors that influence Goal Congruence
InternalFactors
Culture
Common beliefsShared ValuesNorms of BehaviorAssumptions
Management Styles
Attitude of CEOAttitudes of SubordinatesAttitudes of Superiors
InformalOrganization
Line ManagementCommunicationRelationship
Perception &Communication
Channels of CommunicationConflict of InterestInformation System
The Formal System
Rules
PhysicalControl
Manuals SystemSafeguards
TaskControlSystems
The Formal System
Rules
•Formal Instructions•Job Descriptions•Standard Operating Procedures•Manuals•Guidelines•Prohibitions
The Formal System
Rules
PhysicalControl
•Security Guards•Locked Showrooms•Vaults•Computer Passwords•Television Surveillance
The Formal System
Rules
Manuals •Written Instructions•Procedures•Practices
The Formal System
Rules
SystemSafeguards
• Cross Checking•Authorization•Safeguarding Assets•Internal Control•Auditing
The Formal System
Rules
•Automation•Responsibilities•Checking•Reviewing•Reporting
TaskControlSystems
Goals andStrategies
OtherInformation
BudgetingStrategicPlanning
ResponsibilityCentrePerformance
Rules
ReportActual VersusPlan
PerformanceMeasurement
Reward (Feedback
Feedback CommunicationReview Corrective
Action
Measurement
Formal Control Process
Types of Organizations
Functional Structure
CEO
Production Manager
Marketing Manager
Manager
Plant 1
Manager
Plant 2
Manager
Plant 3
ManagerRegion A
ManagerRegion B
ManagerRegion C
Staff
Staff
Staff
Business Unit Structure
CEO
ManagerBusinessUnit A
Plant Manager
Marketing Manager Plant
ManagerMarketingManager
Staff
Staff
Staff
ManagerBusinessUnit B
ManagerBusinessUnit C
PlantManager
MarketingManager
Staff
Matrix Organization
FunctionalManager A
Project Manager X
FunctionalManager B
FunctionalManager C
Project Manager y
Project Manager Z
Functions of the Controller
•Designing and operating information & Control Systems
•Preparing FStatements and Freports
•Preparing, Analyzing, and interpreting financial reports
•Supervising internal auditing and accounting control
•Developing personnel in the controller Organization
Business Unit Controller
Dotted line Relationship
Here the controller reports to BU Manager, who is immediate boss, and ultimate authority in hiring, training, transfer, compensation, promotion, and firing…
Business Unit Controller
Solid line Relationship
Here the controller reports to Corporate Controller who is also boss of the business unit controller and having authority for hiring…
Alternative Controller Relationship
BusinessUnitController
CorporateController
BusinessUnitManager
BusinessUnitController
CorporateController
BusinessUnitManager
Dotted Line Solid Line
