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BEHAVIOR IN ORGANIZATION
A PAPER PRESENTED IN PARTIALFULFILMENT OF THE
REQUIREMENTS FOR BUS817
(MANAGEMENT USE OF CONTROLSYSTEM)
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Organizai!na" #$%a&i!r is the study of
human behavior in organizations. It is anacademic discipline devoted to
understanding individual and groupbehavior, interpersonal processes, and
organizational dynamics with the goal ofimproving the performance of organizationsand the people in them (Schermerhorn et
al.,2010.
Inr!'i!n
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Individual members have personalgoals as well as the organizational
goals to achieve.!he purpose of control is to ensure
that an individual member behave in a
manner consistent with organizationalob"ectives. #anagement control is theprocess of in$uencing others in a
company in order to e%ectively ande&ciently achieve the goals.
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'oal congruence process, is when
the actions people are led to tae is
in accordance with their perceived
self)interest are also in the best
interest of the organization.
G!a" C!ngr$n$
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*hat actions does it motivate
people to tae in their own self)interest+
re these actions in the best
interest of the organization+
Both formal and informal processesinuence human behaviour in
organization which aect the degree to
2 most important -uestions
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!here are eternal and internal forces that
play ey role in achieving goal congruence/
E*$rna" +!r$,- wor ethic, loyalty,
diligence
In$rna" +!r$,- ulture/ common beliefs,
shared values, norms of behaviour
In+!r.a" Pr!$,,$,
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P$r$/i!n an' !..niai!n
!he manager of the organization do receive information both from formal and
informal channel about what is to be done which might not be clear enough
of what management wants done. !he message received from di%erent
sources may con$ict with one another or sub"ect to di%erent interpretation.
In+!r.a" Organizai!n
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!his can be classied into two/
!he management control system itself
ules
ules are formal instructions and controls e.g.manuals, "ob description, standard operating
procedure
3ormal ontrol System
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3ormal control process
Sra$gi
/"anning
O%$r
in+!r.ai!nG!a" an'
,ra$gi$,
R$,/!n,i#i"i
1 $n$r
R"$,
R$/!r
aa"
&$r,, /"an
B'g$ing
2a,
/$r+!r.an
$
,ai,+a!r13
M$a,r$.$n
F$$'#a4
C!..niai!n
Y$,
N!
R$&i,$
R$&i,$
C!rr$i&
$ ai!n
R$5ar'+$$'#a4
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T1/$, O+ Organizai!n
3irm4s strategy has an in$uence on its
structure, the type of structure in$uences the
design of the organization control system
!here are 5 types of organizational structure6
3unctional
7usiness unit and
#atri structure6
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Fni!na" ,rr$
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B,in$,, Uni
Srr$
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!his is the person who is responsible for
designing and implementing the
management control system.
controller plays an important role in
design and operations of the control
system. In many organizations the title
of the controller is called chief nancial
T%$ !nr!""$r
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!he controller function is a sta% function
7usiness unit controller inevitably has divided
loyalty
8n one hand they owe some allegiance to the
corporate controller
on the other hand they owe allegiance to the
managers of their own units
T%$ #,in$,, ni
!nr!""$r
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$gardless of the reporting
relationship, the business unitcontroller is epected not to condoneor participate in the transmission ofmisleading information.
8rganizations should choose a designstructure that is liely to benet themthe most. !he best form is the onewhich operates at minimum cost per
!n",i!n
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!han 9ou
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nthony, .:. and 'ovindara"an, ;.
(2002. Management control system.(11thed. . #c'raw
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