L5 Control Process by Grisinger

04/08/2304/08/23 [email protected]; VIM [email protected]; VIM Pune 11

Nature of Management Control System – An Approach

MCS is process comprising of – Set of actions –

• Set Goals & Performance Measures• Measure Achievements.• Compare Achievements with Goals.• Compute Variance (if any) ; is yes• Report Variance.• Determine the Causes of Variance.• Take Action to Eliminate Variance.• Follow up to ensure that Goals are met.


Goal

Behavior

Choice

Perception Comparator

Decision Maker

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter

Environment [Internal- Org.External – Ind /Eco]

The Cybernetic Paradigm by Griesinger- A Control System

One of the approaches to look at Nature of Control System is and how it works?.Essential elements are: Environment ; Goal ; Decision Maker


The Cybernetic Paradigm by Griesinger:-

The Control Process Representation-

1. The decision Maker scans the environment through sensors and collects all possible data.

Sensors - Internal auditor’s observation/ report, performance appraisal report, performance evaluation report, Informal Discussion and observation etc

Goal

Behavior

Choice


Decision Maker

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter



2. DM arrives at factual premise about the state of the environment, using ….

• Perception to capture the environmental changes

• Logical reasoning to select relevant data from Environment.

• Select data, past experience, cognitive capability Factual Premise.



Goal

Behavior

Choice


Decision Maker

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter



3. DM compares the factual premise with the value premise (desired state) of the internal environment i.e. set goals.

• Difference between two states represents GAP in performance

if it exists so then. ………..



Goal

Behavior

Choice


Decision Maker

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter



4. DM displays a Behavior Choice to bridge the GAP between two states –

• Behavior Choice - the action DM initiates from among the alternatives

• Action may be altogether new one or from existing bank-BR

• “Continuous Search” process for better solution is part of BR.

• Hence BR is kept updated continuously

Goal

Behavior

Choice


Decision Maker

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter


Search Process – part of

BR


5. DM selects the first best alternative which bridges the Gap, subject to constraints and budgets imposed by the environment

• In case of more than one choices he selects action which benefits most

• In case of no choices available, even in BR, he expands his search process

• Process of starting, expanding and closing of SEARCH process is called SATISFYING.

• In the Process least effective actions are dropped automatically. (like a cognitive theory)

Goal

Behavior

Choice


Decision Maker

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter



6. DM activates the decision – Selected action is implemented through effecter; thus he becomes an agent for change i.e. EFFECTER.

A systematic Control is brought about in internal environment.

DM determines the effects of his actions by way of feed back from the environment through sensors. This action and feed back process introduces a learning process in the organization.

Goal

Behavior

Choice


Decision Maker

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter



•Even after such an exercise the goals are not met i.e. the GAP is not bridged; either he is compelled to revise his perception about the factual premise or his value premise-GOAL.



Initial Factual Stand

Value Stand

Factual Stand GAP

Initial Value Stand


Interaction among the elements

• Goals direct the internal environment.

• Perception about past performance influences current goal.

• Manger perceives that part of environment which pertains to own goal.

• If Behavior Repertoire does not provide a solution; then either perception or goal is changed.

• Additional information (if introduced) during the search process influences all elements. (e.g. Govt. Regulations on import restrictions)

• Decision makers learn from their past experience.




G G SuperiorSuperior = = SubordinatesSubordinates (G1, G2, G3, G4 ………) (G1, G2, G3, G4 ………)

G1 G1 SuperiorSuperior = = SubordinatesSubordinates ( G11, G12, G13, G14 …..) ( G11, G12, G13, G14 …..)

G11 G11 SuperiorSuperior = = SubordinatesSubordinates ( G111, G112, G113………) ( G111, G112, G113………)

Cybernetic Paradigm to specify the Cybernetic Paradigm to specify the relationship between Superior and Subordinate relationship between Superior and Subordinate

Goals and Control MechanismGoals and Control Mechanism


Cybernetic Paradigm to specify the relationship between Superior and SubordinateCybernetic Paradigm to specify the relationship between Superior and Subordinate

Goal

Behavior

Choice


Decision Maker - Superior

Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Effecter


Goal

Behavior

Choice


Value Premise

Factual Premise

Behavior

Repertoire

Sensor

Feed

back

Decision Maker -Subordinate


Thank You.Thank You.

Documents

L5 Control Process by Grisinger