Mgt Control 3

7/23/2019 Mgt Control 3

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BEHAVIOR IN ORGANIZATION

A PAPER PRESENTED IN PARTIALFULFILMENT OF THE

REQUIREMENTS FOR BUS817

(MANAGEMENT USE OF CONTROLSYSTEM)


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Organizai!na" #$%a&i!r is the study of

human behavior in organizations. It is anacademic discipline devoted to

understanding individual and groupbehavior, interpersonal processes, and

organizational dynamics with the goal ofimproving the performance of organizationsand the people in them (Schermerhorn et

al.,2010.

Inr!'i!n


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Individual members have personalgoals as well as the organizational

goals to achieve.!he purpose of control is to ensure

that an individual member behave in a

manner consistent with organizationalob"ectives. #anagement control is theprocess of in$uencing others in a

company in order to e%ectively ande&ciently achieve the goals.


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'oal congruence process, is when

the actions people are led to tae is

in accordance with their perceived

self)interest are also in the best

interest of the organization.

G!a" C!ngr$n$


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*hat actions does it motivate

people to tae in their own self)interest+

re these actions in the best

interest of the organization+

Both formal and informal processesinuence human behaviour in

organization which aect the degree to

2 most important -uestions


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!here are eternal and internal forces that

play ey role in achieving goal congruence/

E*$rna" +!r$,- wor ethic, loyalty,

diligence

In$rna" +!r$,- ulture/ common beliefs,

shared values, norms of behaviour

In+!r.a" Pr!$,,$,


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P$r$/i!n an' !..niai!n

!he manager of the organization do receive information both from formal and

informal channel about what is to be done which might not be clear enough

of what management wants done. !he message received from di%erent

sources may con$ict with one another or sub"ect to di%erent interpretation.

In+!r.a" Organizai!n


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!his can be classied into two/

!he management control system itself

ules

ules are formal instructions and controls e.g.manuals, "ob description, standard operating

procedure

3ormal ontrol System


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3ormal control process

Sra$gi

/"anning

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in+!r.ai!nG!a" an'

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C!..niai!n

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$ ai!n

R$5ar'+$$'#a4


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T1/$, O+ Organizai!n

3irm4s strategy has an in$uence on its

structure, the type of structure in$uences the

design of the organization control system

!here are 5 types of organizational structure6

3unctional

7usiness unit and

#atri structure6


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Fni!na" ,rr$


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B,in$,, Uni

Srr$


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!his is the person who is responsible for

designing and implementing the

management control system.

controller plays an important role in

design and operations of the control

system. In many organizations the title

of the controller is called chief nancial

T%$ !nr!""$r


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!he controller function is a sta% function

7usiness unit controller inevitably has divided

loyalty

8n one hand they owe some allegiance to the

corporate controller

on the other hand they owe allegiance to the

managers of their own units

T%$ #,in$,, ni

!nr!""$r


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$gardless of the reporting

relationship, the business unitcontroller is epected not to condoneor participate in the transmission ofmisleading information.

8rganizations should choose a designstructure that is liely to benet themthe most. !he best form is the onewhich operates at minimum cost per

!n",i!n


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!han 9ou


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nthony, .:. and 'ovindara"an, ;.

(2002. Management control system.(11thed. . #c'raw

Mgt Control 3

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