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Acct 5919 Essay

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Submitted By elainewangpeng
Words 5007
Pages 21
(a) --- Diagnostic control systems, serving mainly as management by exception tools, are used to monitor organizational outputs and compare them to the preset standards, in order to correct possible deviations and keep the intended strategy on track. --- Beliefs systems: the explicit set of organizational definitions that senior managers communicate formally and reinforce systematically to provide basic values, purpose and direction for the organization; --- Boundary Systems: they delineate the acceptable domain of activity for organisational participants. Unlike belief systems, they do not specify positive ideals. Rather, they establish limits, based on defined business risks, to opportunityseeking. --- Interactive Control Systems: they are the formal information systems that managers use to involve themselves regularly and personally in the decision activities of subordinates. They focus attention and force dialogue throughout the organisation. They provide frameworks, or agendas, for debate, and motivate information gathering outside of routine channels. (b) Belief systems are broad and inspirational in order to appeal to all organizational levels. Thus, they are not specific enough to be used as standards or as a basis for performance evaluation. Since they are highly inspirational and encourage the organization to unfocused search for new opportunities, the organization risks a dispersion of energy and resources. In order to balance the positive effects of belief systems, and focus organizational behaviour, top managers use boundary systems to define the acceptable domain for opportunity-seeking behaviour. Working together, boundary systems and beliefs systems are the yin and yang that together create a dynamic tension. Diagnostic controls do not receive attention from top management, unless in case of substantial deviations from the targets. If everything is on

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