17.8 The Control- and Involvement-Oriented Approaches to Planning and Controlling
3 min read•june 25, 2024
Planning and controlling are crucial management functions. They involve setting goals, creating strategies, and ensuring execution aligns with objectives. Different approaches exist, ranging from top-down control to participative involvement, each suited to specific environments and tasks.
Managers must adapt their planning and control methods based on environmental uncertainty. In stable settings, efficiency and standardization are key. In uncertain environments, flexibility and innovation become critical. Effective managers balance control and involvement to optimize organizational performance.
Approaches to Planning and Controlling
Control vs involvement approaches
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- Top-down planning and decision-making where upper management sets goals and strategies
- Centralized control with power concentrated at the top of the organizational hierarchy (C-suite executives)
- Emphasis on strict adherence to plans and procedures to ensure consistency and predictability
- Suitable for stable environments and routine tasks that require efficiency and standardization (assembly line production)
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- Participative planning and decision-making that includes input from employees at various levels
- Decentralized control with authority distributed throughout the organization
- Emphasis on flexibility and adaptation to changing circumstances
- Encourages employee input and creativity to foster innovation and problem-solving
- Suitable for dynamic environments and complex tasks that require agility and responsiveness (software development)
- Promotes through active participation in decision-making processes
Employee roles in organizational structures
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- Hierarchical structure with clear chain of command and vertical communication channels
- Specialized tasks and roles with well-defined job descriptions and responsibilities
- Limited employee participation in planning and decision-making, as directives come from above
- Strict adherence to rules and procedures to maintain order and consistency
- Suitable for stable environments and routine tasks that prioritize efficiency (manufacturing)
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- Flat structure with decentralized authority and horizontal communication channels
- Flexible and adaptable roles that can change based on organizational needs
- High employee involvement in planning and decision-making through collaborative processes
- Emphasis on collaboration and teamwork to leverage diverse skills and perspectives
- Suitable for dynamic environments and complex tasks that require creativity and innovation (research and development)
- Fosters an that values adaptability and open communication
Management Responsibilities and Control Methods
Management adaptations to uncertainty
- Stable environments
- Management focuses on efficiency and optimization to maximize productivity and minimize costs
- Emphasis on standardization and control to ensure consistent quality and performance
- Reliance on formal rules, procedures, and budgets to guide employee behavior and resource allocation
- Centralized decision-making by top management to maintain alignment with organizational goals
- Moderately uncertain environments
- Management balances efficiency and adaptability to respond to changing market conditions
- Emphasis on coordination and problem-solving to address emerging challenges and opportunities
- Use of performance targets and benchmarks to monitor progress and make data-driven decisions
- Increased employee involvement in decision-making to tap into frontline expertise and insights
- Highly uncertain environments
- Management focuses on innovation and responsiveness to stay ahead of the competition
- Emphasis on flexibility and rapid adaptation to capitalize on new opportunities and mitigate risks
- Reliance on direct communication and informal controls to enable quick decision-making and course corrections
- Decentralized decision-making and empowered employees to encourage proactive problem-solving and experimentation
Strategic Planning and Change Management
- involves long-term goal setting and resource allocation to achieve organizational objectives
- focuses on guiding organizations through transitions and implementing new initiatives
- Both processes emphasize to enhance organizational performance and competitiveness
Key Terms to Review (26)
Autocratic Leadership: Autocratic leadership is a management style in which a leader makes decisions independently, without input from their team. Autocratic leaders maintain strict control over their subordinates and demand absolute obedience, often dictating how tasks should be completed. This leadership approach is characterized by a top-down decision-making process and minimal delegation of authority.
Balanced Scorecard: The balanced scorecard is a strategic performance management framework that helps organizations measure and track progress towards their goals and objectives. It provides a comprehensive view of an organization's performance by considering financial, customer, internal business processes, and learning and growth perspectives.
Bureaucratic Control: Bureaucratic control is a management approach that emphasizes formal rules, procedures, and hierarchical authority to ensure compliance and standardization within an organization. It is a control-oriented approach to planning and controlling organizational activities.
Change Management: Change management is the process of planning, implementing, and monitoring organizational changes to minimize disruption and maximize the benefits of the transformation. It involves strategies and techniques to guide individuals, teams, and the entire organization through significant shifts in policies, procedures, technologies, or structures.
Clan Control: Clan control refers to a form of organizational control where shared values, beliefs, and norms shape and guide employee behavior, rather than formal rules, procedures, or direct supervision. It emphasizes a strong organizational culture and a sense of community within the firm.
Continuous Improvement: Continuous improvement is an ongoing effort to enhance processes, products, or services by making incremental, yet meaningful, changes over time. It is a fundamental principle in various management philosophies, such as Total Quality Management (TQM) and Lean Manufacturing, aimed at consistently improving organizational performance and efficiency.
Control-oriented Approach: The control-oriented approach to planning and controlling focuses on establishing clear objectives, developing detailed action plans, and implementing strict monitoring and evaluation mechanisms to ensure the desired outcomes are achieved. This approach emphasizes top-down management and centralized decision-making to maintain tight control over organizational processes and performance.
Delegation: Delegation is the process of entrusting tasks, authority, and responsibility to subordinates or team members. It involves a manager transferring certain duties and decision-making power to their employees, empowering them to act on behalf of the organization.
Employee Engagement: Employee engagement refers to the level of commitment, passion, and connection an employee feels towards their work, organization, and colleagues. It is a crucial factor in driving organizational success, productivity, and employee well-being in the 21st century workplace.
Empowerment: Empowerment is the process of enabling and authorizing individuals or teams to take initiative, make decisions, and take action in their work environment. It involves granting employees the autonomy, resources, and support they need to exercise their abilities and contribute to organizational success.
Involvement-oriented Approach: The involvement-oriented approach to planning and controlling emphasizes the active participation and engagement of employees in the decision-making and implementation processes. This approach focuses on fostering a sense of ownership and commitment among the workforce to achieve organizational goals.
Management by Objectives: Management by Objectives (MBO) is a strategic management approach that aligns individual and organizational goals, empowering employees to take ownership of their work and contribute to the overall success of the organization. It is a collaborative process where managers and employees work together to define, monitor, and evaluate specific, measurable, and achievable objectives, fostering a culture of accountability and continuous improvement.
Mechanistic Organizations: Mechanistic organizations are a type of organizational structure characterized by a rigid hierarchy, centralized decision-making, and a high degree of formalization and specialization. These organizations prioritize control, efficiency, and predictability in their operations, often at the expense of flexibility and employee involvement.
Organic Organizations: Organic organizations are flexible, decentralized, and adaptable organizational structures that emphasize open communication, collaboration, and empowerment of employees. They are often contrasted with mechanistic or bureaucratic organizations, which are more rigid, hierarchical, and focused on command-and-control management.
Organizational Culture: Organizational culture refers to the shared values, beliefs, attitudes, and behaviors that characterize the internal environment of an organization and influence the actions and decisions of its members. It is the unique personality of an organization that shapes how employees think, feel, and act within the workplace. Organizational culture is a critical factor in the success and effectiveness of an organization, as it can impact areas such as managerial decision-making, organizational structure, and employee engagement and productivity.
Participative Management: Participative management is an approach to organizational decision-making that actively involves employees in the process. It emphasizes collaboration, shared responsibility, and empowerment, allowing workers to contribute their ideas and have a direct influence on the decisions that affect their work.
PDCA Cycle: The PDCA (Plan-Do-Check-Act) cycle is a four-step iterative management method used in business for the control and continuous improvement of processes and products. It is a fundamental concept in quality management and is widely applied in various industries and organizations to systematically identify, analyze, and solve problems.
Peter Drucker: Peter Drucker was a renowned management consultant, educator, and author who is widely regarded as the father of modern management. His ideas and principles have had a profound impact on the field of management, particularly in the areas of management by objectives, the control- and involvement-oriented approaches to planning and controlling, and the development of entrepreneurship skills for technology and innovation.
Return on Investment (ROI): Return on Investment (ROI) is a performance measure used to evaluate the efficiency and profitability of an investment or a company's use of resources. It is calculated as the net benefit of an investment divided by the cost of the investment, expressed as a percentage or ratio.
Six Sigma: Six Sigma is a data-driven methodology used to improve business processes by identifying and eliminating defects. It focuses on reducing variation and improving quality to achieve near-perfection in product or service delivery. This comprehensive approach to process improvement has applications across various industries and business functions.
Strategic Planning: Strategic planning is the process of defining an organization's long-term vision, mission, and objectives, and developing a comprehensive plan to achieve those goals. It involves analyzing the organization's internal strengths and weaknesses, as well as its external environment, to make informed decisions about the best course of action for the business.
Supervisor: A supervisor is an individual who oversees and manages the work of a team or group of employees, providing guidance, direction, and oversight to ensure the successful completion of tasks and achievement of organizational goals.
Team Leader: A team leader is an individual who is responsible for guiding, directing, and coordinating the efforts of a group of people working together towards a common goal. They play a crucial role in fostering teamwork, communication, and the overall success of the team.
Theory X: Theory X is one of the two contrasting managerial assumptions about human nature, proposed by Douglas McGregor. It suggests that employees are inherently lazy, dislike work, and must be closely supervised and coerced to achieve organizational goals.
Theory Y: Theory Y is a management theory developed by Douglas McGregor that assumes employees are inherently motivated, creative, and responsible. It contrasts with the more controlling Theory X, which views employees as lazy and needing close supervision.
W. Edwards Deming: W. Edwards Deming was a renowned American statistician, professor, author, and consultant who made significant contributions to the field of quality management. He is best known for his work on the development of statistical process control and the promotion of a management philosophy focused on continuous improvement and employee involvement.