Design of Organizational Control Mechanisms Essay Example for Free

Design of Organizational Control Mechanisms Essay Problem: When a team of individuals produce a single output the problem arises on how to contribute the reward so that every individual is equally rewarded. This article examines three different mechanisms to deal with this issue: 1.Markets Markets deals with the control problem through precise measurement and reward of individual contributions. 2.Bureaucrats Bureaucrats rely on a mixture of close evaluation with socialized acceptance of common objectives. 3.Clans Clans rely on a relatively complete socialization process which effectively eliminates goal incongruence between individuals. Introduction: Controls (by Tannenbaum)=sum of interpersonal influence relations in an organization Controls (Ezioni)= control is equivalent to power Controls (Weber)= a problem in creating and monitoring rules through a hierarchical authority system Main questions in article: 1) What are the mechanisms through which an organization can be managed so that it moves towards its objectives? 2) How can the design of these mechanisms be improved, what are the limits of each design? An example: The parts supply division Purchasing department: buys 100.000 items (p.a.) from 3.000 suppliers purchased by 22 employees on 3 management levels. †¢Purchasing officer send out request to 3 manufacturers and adds information on reliability, and the order †¢Supervisor Consults agents if they need help and reminds workers that they are not allowed to accept presents Warehousing operations: 1.400 employees (incl. 150 manager) †¢Pickers and packers (worker) †¢Supervisor (manager) Formal authority (written rules) Informal authority (personality) Three mechanisms: 1.Market mechanism purchasing function Agents and supervisory employ market mechanism: to minimize cost for the company by picking the best price on the markets. In a market prices convey all of the information necessary for efficient decision-making. Frictionless market: Prices represent exactly the value of good or service. Therefore reward can be contributed in direct proportion to contribution of employee! Agents and supervisory are subject to bureaucratic mechanisms: Their work is controlled by a set of bureaucratic surveillance controls (performance evaluation, hierarchical oder-giving) 2.Bureaucratic mechanism warehousing function Warehousing is subject to routines of monitoring and directing. This is done by close personal surveillance and direction of subordinates by superiors, based on a set of rules. Rules vs. price: Rules are arbitrary (beliebige) standards without comparison, based on assigned values of (successful) actions. Prices imply that a comparison has already taken place. Prices are far more efficient means of controlling transactions than are rules. However, the conditions necessary for frictionless prices can rarely be met, and in such conditions the bureaucratic form, despite its inadequacies, is preferred. 3.Informal social / clan mechanism Supervisors can rely on bureaucratic mechanisms but this requires surveillance which is associated with costs. But when the supervisor knows that his workers achieve the right objectives, he can eliminate many of the costly forms of audition and surveillance. Social and informational prerequisites of control The three models can be arranged along two dimensions: 1.Informational requirements =prerequisite to successful operation 2.Social underpinnings = Set of agreements between people, as a bare minimum, is basis for control Type of controlSocial requirementsInformational requirements MarketsNorm of Reciprocity (Wechselwirkung) Prices BureaucracyNorm of Reciprocity Legitimate authorityRules ClanNorm of Reciprocity Legitimate authority Shared values, beliefsTraditions The informational prerequisite of control: While a Clan is the most demanding and the Market the least demanding with respect to social underpinnings, the opposite is true when it comes to information. Within large organizations departments tend to develop own jargon in which complex information is easily transported. Each system carries information on how to behave: †¢Explicit system: accounting system easily accessible by newcomer (system is created) †¢Implicit system: is far less complete in its ability to convey information. e.g. US Senate need years to understand flow of information (systems grow up) Companies attempting to control the organization through a price (=market) mechanism use transfer prices to represent prices of internal performances. The advantage should be obtained by using the best prices within the firm. Organizations can also create an explicit set of rules (behavior as well as production and output) that will cover every situation and therefore cut the information problem down by using rules that will cover 90% of all events and depending upon hierarchical authority to settle the remaining 10%. Again legitimate authority is critical to bureaucracy. In a Clan the information is contained in the rituals, stories and ceremonies. So to say the information system does not require a information system, its just there. For example Chinese-American Hui: conducts business as venture capital lender but they also enter risky businesses and even the repayments are left open. Entry is only granted by birthright, a practice that guarantees that every member is part in the same social network and therefore behave to the same rules and principles. While the Market and Clan are both specialized approaches it is the Bureaucratic which is the system that is most flexible. Of course, under certain circumstance both the Market and Clan approach will deliver better results but the Bureaucratic can withstand high rates of turnover, a high degree of heterogeneity and it does not have very demanding informational needs. Designing Control Mechanisms: Costs and Benefits Two ways of effective people control: 1. Find people that fit needs exactely 2. find people that dont fit exactly but use a managerial system to instruct, monitor and evaluate them Best approach depends on costs. Ad 1. is associated with costs and search and acquisitions but their skills will help to reduce costs in the long-run. Ad 2. includes trainings costs and a the costs for the supervisory system but reduces high turnover. Search and select ‘clan-type’ people: Cost of Search and Acquisition: High Wages Benefit: Perform tasks without instruction, work hard Instruct people into the ‘clan’ system: Cost of training: instruct, monitor, and evaluate unskilled workers (who are likely to be indifferent to learn organization skills and values). High rates of turnover. Costs of monitoring: developing rules, supervising. Benefit: heterogeneous system of people that can be controlled. Explicit rules (codified knowledge) offset turnover costs. Loose coupling and The Clan as a Form of Control New view with impact on designing control mechanisms. The ability to measure either output or behavior which is relevant to the desired performance is critical to the rational application of market or bureaucratic forms of control. Knowledge of transformation process: Tin Can plant: If we understand the technology (e.g. production process and what it takes for a successful production) perfectly, we can achieve effective control by setting rules that lead to behavior and processes that lead to our desired transformation steps. Thus, we can create an effective bureaucratic control mechanism. Womens boutique: On the other hand, if we dont understand what is needed (e.g. control system for womens boutique) to be a successful buyer or merchandiser, we cant create rules. But we can measure output (turnover per buyer, salex volumes,). So we can use the output control mechanism to monitor various indicators and set actions accordingly. Apollo Program: Each step of the transformation (assembling) is crystal clear and we have a output measure (it comes back or not). Thus we have the choice and the lower cost alternative will be preferred: clearly as the cost of failure would be prohibitive (untragbar) and more elaborate behavior control system will be installed. Reseach Lab: We have the ability to define the rules of behavior and we can measure the output which will be some 10 years in the future. Certainly a strong output control system will be used but effectively this cannot guarantee success so neither behavior nor output measurement will be sufficient, leaving us with no rational form of control. Therefore such organizations rely on ritualized, ceremonial forms of controls. This approach only works with the recruitment of a selected few individuals, with the same schooling and professionalization process. Another organizations using this form: Hospitals, Investement banks, Whereas output and behavior control can be implemented through a market or bureaucracy, ceremonial forms of control can be implemented through a clan. Closing observations Depending on the organization and its requirements it has to be choosen which control systems works best. E.g.: manufacturing: behavior and output control vs. service org.: cultural or clan controls. Nevertheless every control system is directed at achieving cooperation by: †¢Market mechanism: each persons contribution is evaluated; combined with a personal loss of reward †¢Clan mechanism: attain cooperation by selecting and sozialising individuals such that their objectives overlap with the organizations objectives †¢Bureaucratic mechanism: does a little of each, partly evaluates performance and partly engenders feelings of commitment to the idea of legitimate authority in hierarchies Two main questions: 1. Clarity with which the performance can be assessed 2. Degree of goal incongruence (either trust each other or control each other)

The Carnivore project :: essays research papers

The Carnivore Invasion "They that give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." -- Benjamin Franklin, 1759 The current use and regulations of the F.B.I. surveillance tool known as Carnivore need to be revised in such a way that it will no longer be able to copy the e-mails of unsuspecting Americans. Most Americans are not even aware of the existence of the Carnivore project. The ignorance of the American people is understandable; the government has gone to great lengths to ensure secrecy when it comes to the details of the Carnivore project. The purpose of this paper is to bring to light exactly how the Federal Burro of Investigation (FBI) has invaded the privacy of a countless number of Americans. Once the severe flaws of the Carnivore system have been outlined, this paper will describe what laws need to be changed to make the Carnivore project even reasonable. The FBI designed the Carnivore system to capture email communications of a criminal suspect. The information extracted from the suspect’s e-mails is then used as evidence against the suspect. In this simple explanation the Carnivore system appears to be an effective tool against crime. Unfortunately most issues in this world cannot be explained in two sentences. The process of implementing the Carnivore system begins with a court order for a full content-wiretap (Tyson 2). Once a court order has been issued the FBI is required to request that the suspects Internet Service Provider (ISP) is willing/able to copy all of the e-mails to and from the suspects address. The initial request made by the FBI to allow the ISP to copy the suspect’s e-mails is to ensure that the FBI has tried to meet the â€Å"best evidence† rule (Graham 8). The â€Å"best evidence† rule simply states that the FBI has to obtain evidence in the best way possible. If the ISP is able to copy the suspect’s e-mails directly, it is considered better evidence. If the ISP declines the FBI’s request then the FBI is allowed to install the Carnivore system onto the suspect’s ISP (Graham 6). Why would an ISP decline assistance? ISPs are concerned about the privacy of their customers. For example, Earthlink testified before the Carnivore Commi ttee saying that what the FBI was asking them to do â€Å".

American Culture and Heroes

American Culture and Heroes American Culture and Heroes Heroes are not men with capes or super powers as they are portrayed in American culture today. Heroes are people who transform compassion (a personal virtue) into heroic action (a civic virtue). In doing so, they put their best selves forward in service to humanity. A hero is as an individual or a network of people that take action on behalf of others in need, or in defense of integrity or a moral cause. Heroes are people who transform compassion (a personal virtue) into heroic action (a civic virtue).In doing so, they put their best selves forward in service to humanity. A hero is as an individual or a network of people that take action on behalf of others in need, or in defense of integrity or a moral cause. Mike Dilbeck, www. raproject. org, Response Ability Project, 2012 The Oxford American College Dictionary, (2002), e-book Ashford University Library, says that a hero is â€Å"a person, typically a man, who is admired for courage or noble qualifications. † A firefighter, police officer and a soldier (man or woman) would fall under this description of a hero.Arthur Ashe said it best. â€Å"True heroism is remarkably sober, very un-dramatic. It is not the urge to surpass all others? at whatever cost, but the urge to serve others at whatever cost. † Characteristics of a hero are: 1. Courage: A hero overcomes his fears and takes a challenge head on. There is not even a twinge of fear in the heroes heart. 2. Virtuosity: The key aspect of a hero’s character. 3. Sacrifice: A quality that is unique from other virtues. A hero is willing to let personal comforts become indispensable for the higher cause and welfare of others. 4.Determination: The hero is unflinching in his or her determination and believes in his ability. 5. Focus: One of the most prominent qualities of a hero. They are put on this earth for one definitive motive. 6. Compassion: The true hero is empathetic, benevolent and s hows compassion and tenderness to those in need. 7. Perseverance: This is what makes the hero special. Even when faced with failure, they continue to fight till the achieve success. 8. Dedication: Heroes are selfless and whole-heartedly dedicated to the task at hand. 9. Honesty: This forms the base of all of his or her efforts.This is what earns the hero respect. 10. Loyalty: The faithfulness and commitment to their cause is way beyond others. 11. Intrepidity: They have courage that is unshaken no matter what comes into their path. They are determined to fight their challenges to the end. 12. Conviction: A set of unshakable thoughts and beliefs which will not be altered. 13. Fortitude: A habit that encounters a dangerous deed that is unaltered and adopted with passive courage. 14. Responsibility: No matter what the scenario may entail, they take it with utmost sincerity and follow it to the conclusion. 5. Wisdom: The most desired quality, which must be possessed. Wisdom is an attrib ute that all heroes possess, be it a soldier, firefighter, or a police officer. A hero is not born, they are self-made. These characteristics are what set a hero apart from. www. personalitytutor. com/qualities-of-a-hero. html In our American culture the media has changed the meaning of a hero. Reality television has become a part of our everyday lives and has changed the way in which we perceive the true hero. Hall, Alice, Viewers’ Perceptions of Reality Programs, Communication Quarterly Vol. 4, No. 2, May 2006, pp 191-211. The media is making it seem like everyone is a hero. In reality television, such as Survivor or The Great American Race, the media has made the person that completes the challenges a â€Å"hero†. They play on the thoughts of Americans who want to believe. According to the media, someone surviving on this show is touted as a hero. An example of the appeal to reality television is the perceived novelty and value on real people experience and not acto rs. Reality television shows that the everyday person can succeed and do not have to be famous to do it.Reality Television is not all bad. It shows people that anyone can do anything, giving the everyday white collar person hope. But it also tempts people to try things that they should never do without proper supervision. (Jack Ass) Given the time a family is apart, due to work, school, and other outside obligations, less time watching reality television and more family time is needed. Reality television is making just anybody a hero and not the people that actually deserve to be considered a hero. The real heroes are the people who fight for our freedom and our safety.As stated in the book Teaching and Learning in the Age of Information, Tyner, Kathleen R. , Literacy in a Digital world. Teaching and Learning in the Age of Information. 1998 Ashford University Library, how literacy in America during the new information age has changed due to computers and the usage of doing all resea rch from the point of websites, compared to the time when you had to do research by actually going to the library and doing research for the right books and then sitting down and taking notes and writing everything down by hand.I believe that what this means is that by having the new information age and the reality television and the media that is portraying things as they want them to appear, people are not as literate as they once were. Literacy has sustained through the development of the Information Age over the past 25 years, Rassool, Naz, Literacy for Sustainable Development in the Age of Information, 1999, Ashford University Library e-book, this is true. People just don’t have to work for it like they used to.This once again falls back to where the people that actually deserve the credit do not get it and they are just put in the pool with everyone else and whoever is lucky enough to be picked on that particular day will be the one that is commended. In conclusion the way that people perceive a hero is all in how they live their everyday lives and what they believe in. If they believe the Survivor winner, Richard Hatch, is a hero then they are the very people that have changed the way that people perceive a hero. ReferencesHall, Alice, Viewers’ Perceptions of Reality Programs, Communication Quarterly Vol. 54, No. 2, May 2006, pp 191-211. Mike Dilbeck, www. raproject. org, Response Ability Project, 2012 Rassool, Naz, Literacy for Sustainable Development in the Age of Information, 1999, Ashford University Library e-book. The Oxford American College Dictionary, (2002), e-book Ashford University Library. Tyner, Kathleen R. , Literacy in a Digital world. Teaching and Learning in the Age of Information. 1998, Ashford University Library. www. personalitytutor. com/qualities-of-a-hero. html

Summary Of Happy People - 1721 Words

Summary Happy People: A Year in the Taiga is about a village, the center of the story is the life of the indigenous people of the village Bakhtia, along the river Yenisei in the Siberian Taiga. The land mass is one and a half the amount as the land of the United States, also known as the heart of Siberia. Taiga what they call is the wilderness that surrounds the area. There are only two ways to reach them one is by helicopter and the other by boat. Only during the few ice free months of summer is when the boats are frequently used to get here. Furthermore, the river Yenisei is one of the largest in Siberia. The village inhabits about 300 or so people. It follows the natives, whose daily routines have barely changed over the last centuries, keep living their lives according to their own cultural traditions. The natives’ livelihoods are, they live of the land and are called â€Å"trappers†. In addition, they also depicted examples of how they live off the land like: have they ma ke traps, fishing, how they build their homes, and how they defend off mosquitoes with a homemade mosquito repellant from tar. Just by studying and watching the documentary Happy People: A Year in the Taiga is a form of cultural anthropology. How there is not that much development here and how there are only two to reach this outpost by helicopter and by boat is uneven development for the village. Really though you can attribute the uneven development to the climate change but, it seems that it hasShow MoreRelatedMiddle Child Syndrome786 Words   |  3 PagesShe may feel dysfunctional, doomed to a life full of loneliness, depression, and failure. The middle child has been stereotyped with these characterizations for years. However, many people don’t realize that there is a real problem called â€Å"Middle Child Syndrome† that effect children all over the world. 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