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Unit 10: Interactive Control
12. We should develop a discerning view of controls and apply judgement in establishing Notes
them and in interpreting results.
Self Assessment
Fill in the blanks:
5. All ……………….controls should reflect the basic elements of cybernetic paradigm.
6. …………………..should focus upon the objectives and key results of an activity and should
be limited in number.
10.4 The Control Process Hierarchy
The organization consists of many responsibility centres. The control process paradigm can be
expanded to include superior-subordinate behaviour as well. To do so, it is desirable to view the
relationship between a superior and subordinate as a means-end chain or relationship. The
goals or ends of the superior are communicated to the subordinate, who, in turn, devises means
that are appropriate to achieve those ends. These means in turn becomes ends for the subordinate,
who, in turn, become the basis for more detailed means for the next level of supervision.
The process can be illustrated as follows:
The control process begins when a superior meets with a subordinate to review past performance
and negotiate goals, new objectives and targets for key variables for the next year. Once goals
are negotiated, the subordinate will track actual performance at periodical intervals.
The superior meets with the subordinates, periodically, during the period to review performance.
They agree on that portion of the performance that is satisfactory (that is, where targets are
being met) and on those areas where improvement is necessary. For those areas, where
performance has not been satisfactory, they seek to discover the reasons and once, they identify
the possible causes of shortfall in performance, they agree a plan of correction.
During the next review session, they review the progress on the past corrective action, together
with current performance to arrive at targets and actions for next period. The process continues
in a repetitive manner for each period throughout the organization. A reward system is
established that provides rewards based upon performance and improvement in performance.
The targets of the superiors are negotiated before the superior negotiates with subordinates and
may be altered based upon negotiations with subordinates. The subordinates, objectives should
contribute towards the fulfillment of the goals and objectives of the superior. The objectives of
the superior should be less than the sum total of the objectives of all subordinates.
All targets should be specific and if possible measurable. They should be limited.
Example: Not more than seven key target, per manager) in number, given the
information-processing limits of managers. Finally, they should include variables that cannot
be measured in financial terms and variables that are qualitative in nature.
Example: Workforce development and product quality). Often, quantitative surrogates
may be developed for qualitative variables.
Other interactions almost certainly occur between the superior and the subordinate. Some of
these are given in Figure 10.2.
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