MGT 330 –Control Mechanism Paper Control Mechanisms Control mechanisms have many purposes in business management. The control mechanism of employee incentives directly influences the management function of leading (Ganly, 2010). Control mechanisms serve many important purposes; they allow an organization to protect their values they have created as well as the profit of the organization from reduction by competitors, partners, or customers. Control mechanisms add for better predictability, this in turn helps form better business models for an organization.
This paper evaluates six different control mechanisms among six different organizations. The control mechanisms are: job descriptions, program evaluations, pay scale, communication, performance evaluations, and disciplinary procedures. Job Descriptions Consolidated Care depends on detailed job descriptions for their employees to be an effective organization. Job descriptions are effective because they establish lines of authority and areas of responsibility.
Consolidated Care uses job descriptions not only as an outline of expectations of the employee but also a tool to provide an evaluation criterion and provide motivation. Consolidated Care employees respond both positive and negative to their job descriptions. Job descriptions also provide employees with the guidance of who to go to when a problem arises or questions occur. Though, there are some employees who react negative to job description. These employees believe job descriptions limit their abilities and use their job description as an excuse not to perform other tasks.
For example, some employees simply meet expectations; when asked to perform another duty he or she will respond, “That is not in my job description,” which creates friction in the organization. Job descriptions effect the four functions of management by allowing managers to effectively plan, organize, and delegate tasks according to what the employee can do based on the description of the job obtained by an individual upon hire. Job descriptions are a good starting point when trying to lead team members to success.
Program Evaluations Organization “A” program evaluations are done on a yearly basis. Every three months Organization “A” evaluates the programs the company is practicing and reviews its effectiveness. The outcome of the evaluation will determine if the program needs to be revised, eliminated, or continued. Programs evaluation keeps the organization going in the correct direction causing positive outcomes. If program evaluations are non-effective employees will continue to practice the same habits regardless of the negative results.
Some employees reacts positive to programs evaluations because it gives the opportunity to do new things, which will keep the environment changing and exciting. Negative response from employees during a program evaluation can include termination of employees who did not perform well during the program. Program evaluation allows organization “A” to be organized, which in-turn helps to keep employees up-to-date with the actions of the organization. Program evaluations influence planning, an aspect of management (Rothbauer-Wanish, 2009).
Knowing when to address issues and when to reconstruct programs is crucial. What is ahead and preparing for the future by supplying a group information on the same program can create unity among the employees. In every program requires a leader. A leader gives order and structure when evaluation takes place. Controlling is another function of management that program evaluation has impacted. In Organization “A” manager’s monitor employee’s performances and make sure goals are met. Program evaluations will allow managers to monitor what employees are doing and to address their work progress consistently.
Pay Scale The pay scale of an organization is a part of the market control mechanism at the individual level. According to Bateman and Snell (2009), “Market-based controls such as these are important in that they provide a natural incentive for employees to enhance their skills and offer them to potential firms. ” Organizations usually use the market control in the chief executive and president positions, which are a part of a board of director. The board of director determines the pay based on the market rate to maintain his or her status with the organization.
Volunteers of America regulate their pay scale with other organizations in the demographic area within the same pay range. The organizational structure base their pay scale on the level of the position in which the higher the position the more pay received. Levels within a position that provides incentives in pay that consist of additional responsibilities for those who qualify and are in training for the job position. Volunteers of America use a market-base control within the lower level of the organizational structure. This pay scale is relatively the same at all organizations in the same field.
Communication Communication is one of the most important control mechanisms an organization can use. Everyone in the company should know information such as knowing the chain of command, rules, regulations, laws, job descriptions, policies, resources available, and even small things such as the office hours, and break times, or it can create off balance. Communication gives everyone the opportunity to learn something they did not know, ask questions they feel they are unsure about, and bring clearance to anything that was lingering in the air.
The negative reaction in using communication include changes of rules, laws, regulations, and policies are forever-changing according to the government, it can become overwhelming for the agency when trying to keep up. The functions of management: planning, organizing, leading, and controlling, are pieces of every blueprint for any organization. Communication is a control mechanism greatly influences these four functions of management. Performance Evaluations Southern Arkansas University Office of Student Life uses performance evaluations on a regular basis.
The performance evaluation is a way to track how knowledgeable the employees where about the Office and how it works. The evaluation may also include sections to evaluate the employee’s communication skills, client service, and teamwork. For the office, performance evaluations were very effective to seeing how each individual employee was performing as well as learning about where he could use some improvement. At the Office of Student Life the evaluations gave the employees feedback and let each individual know what he could improve on and how.
The evaluations also promote staff recognition and a way to communicate from the employer to the employee. The evaluations are a way to motivate the employees to do their best for themselves and the office. The negatives of performance evaluations are that they can take up time, it can be difficult to critique the employees they work with daily, and sometimes the evaluations are just not taken seriously. At Southern Arkansas University Office of Student Life, the employer or Dean must first plan a schedule of when the evaluations are done and how carry the evaluations out.
The office assigns everyone into a time slot to have his evaluation feedback. This also plays into leading because the Dean has to lead in a way that they can guide employees and communicate effectively to be the most successful. The evaluations also affect the control function by making sure the goals set have been met by the employee. By using the performance evaluations to check in on employees the managers have better control of their organization. Disciplinary Procedures
A control mechanism that applies greatly to the organization of Suncoast Schools Federal Credit Union is that of disciplinary procedures. These are procedures that take place in case of a violation at work. Discipline may result from numerous actions such as not balancing a cash drawer for a consecutive week, or even something more major like sexual harassment. All actions will have some sort of consequence. It is very important to have a set of procedures for disciplinary action because employees need to know what could happen in the case that they violate a procedure or rule.
Rules are effective because no one ever wants to cause trouble, and knowing what could happen could be the difference of someone ever violating a procedure. At Suncoast, it is very effective because employees deal with money; not balancing and not keeping track on large amounts of money result in termination. Positives would be that this would prevent the same mistakes from happening twice. A negative would be if the procedures are too lenient or too strict. If too lenient, mistakes may happen all of the time with no repercussions; however, if too strict, employees may not want to work for that company any more.
Suncoast disciplinary procedures consist of planning and organizing in a way where initial mistakes or violations will not be as bad as when they keep making them. Leading will come in to play because a good example needs to be set. Last, controlling is has the situation covered and making sure that it follows through and in an effective manner. Conclusion Different organizations use different control mechanisms to keep them on track, but regardless of the organization the control mechanisms are vital to creating a successful and competitive organization.
This paper evaluated how control mechanisms effect different organizations and the positives and negatives of each. Not every control mechanism is right for every organization; however, by finding the useful mechanisms, a business can stay ahead of the game, have excellent employees, and be extremely successful and competitive. References Bateman, T. S. , & Snell, S. A. (2009). Management: Leading and Collaborating in a Competive World. Retrieved from The University of Phoenix eBook Collection database. mansci. ournal. informs. org/cgi/content/abstract/25/9/833 – WWW. Ga. gov Ganly, Sarah (2010). The role of control mechanism in business management. Retrieved on June 27, 2010 from http://www. helium. com/items/1836592-the-role-of-control-mechanisms-in-business-management Rothbauer-Wanish, Heather. (2009). Business Management. The four functions of management: All managers must plan organize, lead and control. Retrieved on June 27, 2011 from http://www. suite101. com/content/four-functions-of-management-a113463#ixzz1QRyfTfuX