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Unit 10: Interactive Control

Through the information obtained, the manager constructs certain beliefs concerning Notes
performance as well as the state of the external environment. These beliefs are referred to as
factual premises. Factual premises are formed by passing these data through a cognitive process
referred to as perception. The word ‘perception’ is used to refer to the psychological process of
extracting information from data and interpreting the meaning of that information. Cognitive
limitations prohibit decision-makers from collecting all data in the environment.
The manager uses the factual premises and compares (a process known as comparator) with
organizational goals and performance measures. When difference is found between what decision-
makers desire (i.e. value premises) and their beliefs about the environment (i.e. factual premises),
they are motivated to search for a set of alternatives (a process known as behavioural repertoire)
to close the gap.

Alternative solutions are evoked from the behavioural repertoire according to established or
learned search procedures. The alternatives are selected that meet general budget and return
constraints. The alternative with the highest subjective expected utility that closes the gap will
be chosen. In case no alternative is expected to reduce or close the gap, the decision-maker will
expand the search process. The search process is motivated by the presence of a gap and will stop
when a feasible alternative is found that will close the gap. This decision-making procedure is
termed as satisfying.
Decisions require implementation. The effector, a manager activates the decision, thus serving
as a change agent. Control is brought about by action taken by the manager, who seeks to
determine the effect of the action, which is known as feedback. If new behaviour leads to a
reduction or elimination of the gap, the behaviour is likely to be repeated in the future under
similar circumstances. If goals are being met routinely, it is likely that the organization will
eventually, seek higher levels of performance.

Notes Feedback has the long-term effect of activating learning in the organization. Goals
and performance measures adapt to actual performance.

Figure 10.1: Cybernetic Paradigm of the Control Process

Behavioural
Repertoire

Search and decision rules adapt to experience, with those found most effective will be used in the
future and those found least effective will be dropped from the behavioural repertoire.

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