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 CorrectiveAction

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