Proposition- “Employees’ behaviour shape the organizational design and that behaviour control is non-existent in organizations”.
Section 1 - Introduction including definition of key terms
The world is rapidly changing and managers are faced with varying challenges to effectively manage in today’s highly competitive world (Daft, 2010). The increased technological advances, the demographic and economic changes, the increase in globalization, the demand for high quality and customer satisfaction are leading organizations to look for competitive ways to be more efficient. Organizations are considering outsourcing, part-time workers, and self-directed work teams to be cost effective. The changes in the Government policies and other issues like decrease in work unions, the entry of immigrants and other internal and external forces are demanding that organizations become more flexible in approach, and change from bounded to networked, hierarchical to flat, fixed to flexible, homogeneous to diverse, and local to global (Decker, Engleman, Petrucci & Robinson, 2001).
Today, if organizations are to be effective then managers need to know how to direct their employees and motivate them in their role. It is important to recognize the appropriate control systems that are needed for the long-term effectiveness of the organization as a lack of control systems can affect the organization negatively. Also, the overuse of control systems can choke the organization which can lead to lack of innovation and entrepreneurship (Flamholtz, 1996). Refer to appendix A, for further definitions and concepts.
Rotch (1993) stated that, Young (1988) had conducted a survey which identified that supervisors use control systems to motivate, control and evaluate a subordinate’s performance. The different types of control that are used in organizations are formal control and informal control. Based on the thoughts of Jaworski (1988) & Ouchi (1979), formal control can be further categorized...