Control Mechanisms Essay

1008 words - 4 pages

PAGE PAGE 5 Control Mechanisms
Control MechanismsCarl R. FosterMGT 330December 2, 2008Linda Fisher-LewisUniversity of PhoenixControl MechanismsIdentify four types of control mechanisms used in Unity/TBS Couriers. Compare and contrast these control mechanisms, and determine the effectiveness of these control mechanisms. Also, examine the positive and negative reactions to the use of these controls, and explain how these controls impact the four functions of management.Organizational, business and individual systems developed by a corporation whether applicable company wide or tailored to a specific segment of the corporation are considered control mechanisms. These mechanisms are elemental forces crucial in keeping a company focused on its progress and performance. Control mechanisms are ways "to seek compliance with established plans, standards, quality criteria, and in conformance with organizational goals and values. Control mechanisms are both enabling and constraining." (Malhotra, 1997). The steps to designing control mechanisms are to establish performance standards, measure performance against standards, leading to motivating and stimulating those both beneath and above into high performance through communication and example. Controlling monitors performance and implements necessary changes that need to be made. Control mechanisms allow management to keep profits high.Control mechanisms are "Any process that directs the activities of individuals toward the achievement of organizational goals" Bateman-Snell (2007). One control mechanism used by Unity would be Scheduling Mechanisms. Scheduling refers to making a sequence of allocation decisions at specific intervals. Scheduling based resource management enables full utilization of an under committed configuration such as a route sheet. Two controls under scheduling are:1.) GPS tracking implemented in the drivers vehicle.Positive: Lower fuel costs, visual location to destination tracking.Negative: Cost, Funds could have been used elsewhere.Effectiveness: Very effective from a time management standpoint.2.) Nextel walkie talkie phones.Positive: Limited to those programmed to use them.Negative: Individuals can not make outgoing calls.Effectiveness: Very effective for field to office communication.Market control in contrast to bureaucratic control involves the use of economic forces and the pricing forces that accompany them that regulate performance. As a market for these transactions become established two effects occur: Price becomes an indicator of the goods or service, and price competition has the effect of controlling productivity and performance. Market control is demonstrated by:Contracts written by sales people must be reviewed by area managers and confirmed by time studies confirming profitability.Positives: Ensure accurate and complete compatibility.Negatives: Sales staff complacency.Effectiveness: Company not exposed. Confirmation of maximum profitability.The basic principles that...

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