Chapter 10

Organization Control
and Culture

PowerPoint Presentation by Charlie Cook

© Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved.
 Control Systems
• Formal, target-setting, monitoring, evaluation
and feedback systems that provide managers
with information about how well the
organization’s strategy and structure are
working.
• A good control system should:
be flexible so managers can respond as
needed.
provide accurate information about the
organization.
provide information in a timely manner.
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 Three Types of Control

Figure 10.1
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 Control Process Steps

Figure 10.2
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 Three Organizational Control Systems

Figure 10.3
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 Organization-Wide Goal Setting

Figure 10.4
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 Management by Objectives
• Management by Objectives (MBO)
A goal-setting process in which managers
and subordinates negotiate specific goals
and objectives for the subordinate to achieve
and then periodically evaluate their
attainment of those goals.
• Specific goals are set at each level of the firm.
• Goal setting is participatory with manager and worker
• Periodic reviews of subordinates’ progress toward
goals are held (pay raises and promotions are tied to
goal attainment).
• Teams are also measured in this way with goals and
performance measured for the team.
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 Organizational Culture
• Organizational Culture
The set of internalized values, norms,
standards of behavior, and common
expectations that control the ways in which
individuals and groups in an organization
interact with each other and work to achieve
organizational goals.

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 Clan Control
• Clan Control
The control through the development of an
internal system of values and norms.
Both culture and clan control accept the
norms and values as their own and then work
within them.
• Examples: Work dress styles, normal working hours,
pride taken in work.
These methods provide control where output
and behavioral control does not work.
Strong culture and clan control help worker
to focus on the organization and enhance its
performance.
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 Values and Norms
• Values
Beliefs and ideas about the kinds of goals
members of a society should pursue and
about the kinds and modes of behavior
people should use to achieve those goals.
• Norms
Unwritten, informal rules or guidelines that
prescribe appropriate behavior in particular
situations.
• Having norms and values that are suited to the
organization’s environment is important.
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