A Planning and control systems
8 important questions on A Planning and control systems
Organizational design is not complete when the positions have been established and the superstructure built. Research showed that the superstructure has to be extended with linkages. Two main groups of these linkages have received extensive treatment in the contemporary literature on organizational design.
- Define those two main groups of linkages:
- Planning and control systems.
- That standardize outputs, and liaison devices that grease the wheels of mutual adjustment.
- What is according to Mintzberg the purpose of control?
- To assess whether or not that desired output is achieved?
- The desired output is also called the standard.
We can distinguish two different kinds of planning and control systems.
- What does the performance control focus on?
- Focuses on the regulation of overall performance.
- Primarily concerned with after-the-fact monitoring of results.
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We can distinguish two different kinds of planning and control systems.
- What does action planning focus on?
- Focus to regulate specific actions.
- Oriented to specify activities that will take place.
- What is the general task of performance control?
- The purpose of performance control is to regulate the overall results of a given unit.
- Objectives, budgets, operating plans, and various other kinds of general standards are established for the unit, and its performance is later measured in terms of these standards.
Performance control says: "Increase sales by 10% this year", action planning says, "Do it by introducing blue widgets".
- What does action planning do?
- Action planning imposes specific decisions and action to be carried out at specific points in time.
Performance control.
After the actions have been done:
The profit rate should increase from 7% to 10%. The drilling of holes should be increased from 50 to 60 per day.
- Define the goal and the purpose of this performance control:
- Goal > Standardizing outputs.
- Purpose: Measurement and motivation.
Action planning.
In advance:
Blue widgets should be sold to customers X, Y and Z, or, the hole should be drilled at 1.108 centimetres wide.
- What is the goal of this action planning?
- The goal is the formalization of behaviour (mostly for non-routine decisions).
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