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Controlling perfomance Part 1 - Coggle Diagram
Controlling perfomance Part 1
Management Control
Control is a primary task and is the process of ensuring the operations proceed according to plan
Control systems in practice
Internal control systems exist
to enhance the achievement of organisational objectives
. They
promote the orderly and efficient conduct of business
, help keep the business on course, and help it change safely.
Two types of control system
The Control Environment
Management philosophy, operating style and management policies
Control procedures
Control mechanisms such as segregation of duties, authorisation, reconciliation
Human Resources
is responsible for ensuring a number of employment practices are in place in the organisation
Discipline and Grievance
Dismissal and Redundancy
Health and Safety
Fairness in the workplace
Diversity and equal Opportunities
Appraisal System
Management by Objectives
MBO
supports delegation by
setting a more global sense of direction
while leaving it up to staff to sort out the minutiae of how they actually do the work. Basically
empowering the employees
Empowerment
is encouraging staff wherever possible
to be proactive and creative in solving problems
with the
support and coaching from above
Popularised by management expert
Peter Drucker
Health and Safety
Management has a responsibility to manage the health and safety risks in their workplace
Benefits of health and safety controls
Cost savings
.
Accidents costs the employer money in
legal damages and operating costs
Company image.
The company does not want to be associated with a poor health and safety record
Employers'
legal obligations
for health and safety
are being met
To
preserve the well-being of employees
and others,
improves employee morale
, trust and motivation
Training
Organisations implement safety training because
it improves job knowledge and skills
and
ensures optimum employee performance
at a specified level
Steps
Next, the
planning, execution and evaluation of the training takes place
Because training programmes only have a short-term effect on employee's behaviour,
regular refreshers courses should be organised
First, problems or
training needs are identified
by:
accident reports
AND
through discussion at the health and safety committee
Top
management support is key
in the availability and
success of health and safety courses
Discipline
Is present when the members of the enterprise follow goals or objectives sensibly without overt conflict
Negative Discipline
When employees follow the rules over-strictly, or
disobey regulations and violate standards
of acceptable behaviour
Positive Discipline
Employees
willingly follow
or go beyond the rules of the enterprise
AND
conduct themselves according to the standards of acceptable behaviour
The main purpose is t
o achieve a change in behaviour of employees
so that
future action is unnecessary
Process for handling disciplinary procedures
3) The written or official warning
First and second
4) Suspension
2) The oral warning
5) Demotion
1) The informal talk
6) Dismissal
Statutory procedures
There is a
statutory procedure to follow as a minimum
standard if employer is
contemplating dismissing an employee
Unless employer follow the statutory procedure,
Unions
will automatically
find dismissals unfair
Unions expect employers to behave fairly and reasonably
Statutory procedures involves
three steps
A meeting to discuss the situation
The
right of appeal
A
statement in writing
of what it is the
employee is alleged to have done
.
Handling Discipline
Stay Calm
All enquiries, investigation and proceedings must be conducted with thought and care
Be consistent
The attitude and conduct of employees may be seriously affected if management fails to apply the same rules and considerations to each case
Gather facts
The manager must be as objective as possible, keep an open mind, and do not prejudge the issue
then decide whether to:
arrange counselling/take informal action
arrange a disciplinary meeting
drop the matter
Consider each case on its merits
essential to take account of the circumstances and people involved
Act Promptly
Delay can make things worse as the employee may not realise that they are below standard unless they are told
Follow the disciplinary procedure
The supervisor or manager should never exceed the limits of his or her authority
Encourage Improvement
Disciplinary procedure is to encourage improvement in an employee
Suspension with pay
Self-discipline
Based upon socialisation, producing norms which follow reasonable standards of acceptable behaviour
Most employees want to do the right thing
Once employees know what is expected of them and feel that the rules are reasonable, self-disciplined behaviour becomes part of collective and group norms
Douglas McGregor's 'hot stove rule'
One is burned because of what they do, because the stove is touched, not because of who the person is
Disciplinary action should be directed against the act and not against the person
Immediacy
After noticing offence, the supervisor proceeds to take disciplinary action as speedily as possible
Grievance procedures
Occurs when an employee feels superiors or colleagues are wrongly treating him or her
discrimination
Prevented from advancing
Unfair appraisal
Being picked on
:
Sequence to follow
If the superior cannot help, it is then
referred to the superior's manager
, at which stage the HR or Personnel department should be informed
Distinction should be made between
an individual and a collective grievance
If the grievance is warranted, it is
taken to the employee's immediate superior
The colleague, staff or union representitive should be permitted to be involved
The employee
discusses the grievance with a colleague, staff or union representitive
Time-frames and
deadlines should be stated to resolve the issue
or submit an appeal
Benefits of discipline and grievance procedure
Cost saving
Fewer legal and operating costs
Company image
Employer's legal obligations are being met
To preserve the well-being of employees and others
Tribunals
Employment Tribunals
are independent judicial bodies, less formal than a court, established to hear and determine claims to do with employment matters
The aim is to resolve disputes between employers and employees over employment rights
Discrimination
Breach of contract
Unfair dismissal
Equal pay
Resolving Disputes without a Tribunal
Mediation
An
impartial third party facilitates discussion between the parties
and
encourages them to reach
a mutually satisfactory
conclusion
With benefits such as:
Speedy resolution
Avoids the stress of a formal hearing
Parties can express their views directly to each other
Conciliation
Used
to settle disputes before it gets to tribunal hearing
by building a positve relationship between disputing parties
Confidentiality
Avoid time, stress and cost of attending a tribunal
Lessening damage to the employment relationship
Reaching an agreement that satisfies both parties
Arbitration
An
independent arbitrator hears the case
and
delivers a legally binding decision
in favour of one party,
with benefits such as:
No cross-examination
Limited grounds for review of the arbitrator's decision
Speedy private informal hearing
Dismissal and redundancy
Dismissal
Termination of employment with or without notice by employer or constructive dismissal where the employee resings because of their actions
Only fair if employer can show that it is for one of the following reasons
Because of
statutory duty
or restriction prohibited the employment being continued
Some
other substantial reason
of a kind which justifies the dismissal and that employer acted reasonably in treating that reason as sufficient for dismissal
employee's
capability
or qualification for the job
because the role was
redundant
employee's
conduct
Types of dismissal
Constructive
resignation by employee because conduct of the employer
was sufficient to be deemed to have terminated the contract by the employer's actions
Wrongful
dismissal without notice, a
breach of the contract of employment
Redundancy
A type of dismissal. The ground of redundancy may be justified by any of this:
cessation of business in the place where the employee was employed
cessation of the type of work for which he or she was employed
cessation of business
Equality and diversity
Rosseau and Greller's psychological contract
Psychological contract:
Looked into the
relationship between what the employees believed was expected of them
and
what they expected in return
from the employer
Three types of psychological contract
Calculative
Employees
act voluntarily
and works in exchange for an identifiable set of rewards.
Motivation
and
Commitment
is increased with the increase of rewards
Cooperative
Employees
contribute more than would normally be expected
of them
They actively seek to contribute further to the achievement of company goals
Motivation
and
Commitment
would be linked to achievement
Coercive
employees
feel forced to contribute
and view rewards
as inadequate
Motivation
and
commitment
is low
Salomon
looked at the difficulty in achieving equity in relation to pay, with the many considerations being:
You'll compare the following
Responsibility
responsibilities of employees at different levels of the organisation
Comparability
employees carrying out the same roles in different organisations
Status
employees carrying out different roles in different organisations
Differentials
employees carrying out different roles within the organisation
Output reward
output of employees working in the same area
Contribution
Employee's pay to the profitability of the organisation
Rate for the job
employees carrying out the same role
Supply and demand
Organisation's ability to pay and its need for labour
A living wage
employee needs and their income
Equal Opportunities
To ensure
fair and non-discriminatory treatment is given
by management to
all job applicants
and existing employees
Positive Approach to equal Opportunities
Utilise the best of the
skills and abilities of all employees
Reinforce the professionalism
and image of the organisation itself
Secure the best recruits
from the widest available range of candidates
Typical Equal Opportunities Policy
Does not only relate to sex or marital status
No applicant or employee will receive unfair treatment on the ground of:
Nationality
Race
Ethnic origin
Religion belief
Trade union membership
Govern the relationship amongst employees themselves
Training is an important part of the implementation of the Equal Opportunities Policy
Fairness for all
Recognition, development and use of everyone's talent
Selection criteria on the basis of merit, fitness and competence
Organisational Culture
Handy's
discription
"The way we do things around here"
meaning the sum total of:
Attitude
Norms
Knowledge
Customs
Belief
Levels of culture
Espoused Values
Can be identified from stories and opinions of those within the organisation; such as
Behaviour
What people feel is important in the organisation
How people justify what they do
Deeply rooted values
Language
Communication within and outside the organisation
Basic Assumptions
Deeply embedded in a culture that members are no longer consciously aware of them
Belief on enviromental issues
How people should be treated
Human relations policies
Customer relationships
Artefacts
The view of the organisation that the public experiences;
such as:
Patterns of behaviour
Physical symbols
Dress codes
Office layout
The organisational iceberg
The idea of hidden elements in culture
Visible
Formal Aspects
Goals
Technology
Procedures
Structure
Skills
Hidden
Behavioural Aspects
Style
Communication Patterns
Attitudes
Values
Feelings
Beliefs
Importance of Culture
The way of living of the people; Culture is related to the
development of one's attitude
. The cultural value of an individual
has a deep impact on his/her attitude towards life
essentially
shaping an individual's thinking
and influence his/her mindset
A culture of a community gives its people a character of their own
Shapes the personality of a community.
Gives an individual a unique identity
About
Advantages
of strong cultures
Provide a sense of belonging
Reduce differences amongst members of the organisation
facilitate good communication and co-ordination within the organisation
Strengthen dominant values and attitudes
An organisation's culture has
significant bearing on the way it relates to its stakeholders
, the development of its strategy and its structure.
A strong culture will:
Regulate behaviour and norms among members of the organisation
Disadvantages
of strong cultures
can have blinkered view
May stress inappropriate values
Strong cultures are difficult to change, this beliefs can be deeply rooted
Influences on culture
Diversity
Age
Technology
History
Size
Ownership