Chapter Nineteen
Control Tools and Techniques
Chapter Objectives (1 of 2)
? Describe the four directions in which
organizational communication can flow
? Identify five common communication networks
? Explain the purpose of a management information
system (MIS)
? Differentiate between data and information
? Outline the key elements in designing an MIS
? Explain how MIS is changing the manger’s job and
communications in organizations
? Describe how budgets are used as control tools
Chapter Objectives (2 of 2)
? Explain what the various financial ratios measure
? Describe TQM control charts
? Explain how to determine the most economic
order quantity
? Identify six performance appraisal methods
? List behaviors related to effective disciplining
? Describe the organizational factors that serve as
indirect behavioral controls
Common Communication
Networks
Chain Y
Wheel
Circle
All-channel
Figure 20-1
Networks and Evaluation
Criteria
CRITERIA CHAIN Y NETWORKS WHEEL CIRCLE ALL CHANNEL
Speed
Accuracy
Emergence
of leader
Morale
Moderate
High
Moderate
Moderate
Moderate
High
Moderate
Moderate
Fast
High
High
Low
Slow
Low
None
High
Fast
Moderate
None
High
Table 20-1
Grapevine Pipelines
Y
D
C
B
A
Single strand
(Each tells
one other.)
A
Gossip
(One tells all.)
A
B C
D E
F
G
H
I J
K
A
Probability
(Each randomly
tells others.)
F
K G E C
N
D
J
H I
x
A
C
Cluster
(Some tell selected
others; most typical.)
D F
B I
J
Figure 20-2
MIS Makes Data Usable
Disorganized
Data
are
organized
into
Information then screened for
relevance and
meaningfulness
to become
Information
Usable
for Manager
Figure 20-3
Steps in Designing an MIS
MIS
Design information
processing
Aggregate
the decisions
Analyze information
requirements
Analyze the
decision system
Figure 20-4
Matching Information Requirements
with Managerial Level
Characteristics of Information
Source Scope Level of Aggregation Time Horizons
External Very Wide External Future
Top
Man-
agement
Middle-level
Management
Lower-level
Management Largely
Internal
Narrow Detailed Historical
Figure 20-5
Sample Control Chart
49
50
51
1 5 9 13 17 21 25 29 33 37 41 45 49
Upper Control Limit
Lower Control Limit
Weight of
dry dog
food bags
(in lbs.)
Date
4 5 8 9 10 1112 13 14 15 16 17 18 19 20 22 23 24 25 26 29 30 1
Figure 20-6
Control Chart using Three
Standard Deviations as Limits
Upper
control
limit
Lower
control
limit
Mean
Figure 20-7
Behavioral Control
Techniques
? Selection,
? Goals,
? Job design,
? Orientation,
? Direct supervision,
? Training,
? Mentoring,
? Formalization,
? Performance
appraisals,
? Organizational
rewards,
? Organizational
culture,
Table 20-3
Types of Discipline Problems
and Examples of Each
? Attendance,Absenteeism,tardiness,
abuse of sick leave,
? On-the-Job Behaviors,Insubordination,
failure to use safety devices,alcohol,or
drug abuse,
? Dishonesty,Theft,lying to superiors,
falsifying information on employment
applications,
? Outside activities,Working for a
competing organization,criminal activities,
unauthorized strike activities,Table 20-4
Determining the Most-
Economic Order Quantity
0 Q
Most economic
order size
Co
sts
Total Costs
Carrying Costs
Ordering Costs
Quantity of Order
Figure 20-8