SlideShare una empresa de Scribd logo
1 de 20
Descargar para leer sin conexión
TENSIONS IN MCS
Context
1. Balancing Tensions in control system
2. Six tensions in control system
3. Profit, growth and control
4. Conflicts between short term and long term goals
5. Conflicts among stake holders
6. Complexities of employee motivation
7. Inter-departments conflicts
Balancing Tensions in Control System
Implementing control system in organization will have
several conflicts.
Management Control system of modern days are always
knotted with tensions.
The Katho Upanishad, it is veritably like walking on the
razors edge.
Six Sources of Tensions
• Tension between profit, growth and control
• Tensions between long-term and short-term goals
Tensions arising due to the need to make strategic choices
• Tension between stakeholders
• Tension between varying and conflicting motivation of employees
• Tension between different segments of organization
Tensions due to goal divergence
• Tensions between the desire to seek opportunity and constraint due to limitation
of span of control
Tensions due to limitations managerial of cognitive powers
1.Profit, Growth and Control
Profit
GrowthControl
 Increase Growth and Market share via
heavy advertising and low pricing.
 Controls must be set in place, to ensure
long term sustainability.
 Examples
Example-2: No Controls on
growth and profit.
 Enron, in the late 1990s had reported falsely
staggering numbers of profit by making use of a
loophole in the accounting practices, using the
mark-to-market practice. Eventually, the company
was forced to declare bankruptcy.
 Related
link: http://www.investopedia.com/updates/enro
n-scandal-summary/
2. CONFLICTS BETWEEN LONG TERM
AND SHORT TERM GOALS
2. CONFLICTS BETWEEN LONG TERM AND
SHORT TERM GOALS
Short Term Long Term
Methods of measurement of
performance are simpler.
Methods of measurement of
performance are extremely uncertain
and difficult.
Strongly governed by financial output
based on temporary results.
Focused on financial output but
mostly on permanent/long lasting
results.
Less creativity and more process
involved.
More creativity along with a specific
process.
Focused on Results. Focused on Innovation and overall
good.
Rewarding employees regularly. More tuned to long-term achievement.
MCS- Tension
CONCEPT OF GOAL CONGRUENCE
 Individuals working towards
their Goals.
 Organizational fulfillment of
goals.
 In order to synergize ,
motivation and planning are
needed.
 Success lies in how close these
two can be brought.
RESULT IS COMPROMISE
RESULT IS SUBSTANCIAL LOSS
RESULT IS ACCEPTANCE OF GOALS
WITH SATISFACTION
3. Conflict Among stakeholders
 Stakeholders include shareholders,
managers or employees, customers,
suppliers, lenders or government
agencies and the public at large.
 Areas of interest of each stakeholder
may be different and it can lead to
 Control systems will have to satisfy the
expectations of the all the stakeholders.
 Balancing the interests of stakeholders
is a continuous process and it can lead to
tensions in the control systems
6. Complexities of employee motivation
• When it comes to employees, MCS – Management Control System all three needs
to be viewed in different angles rather then like a SOP / Macro or Micro
Management or just forming a community where there is no involvement.
• If an Organization needs to be successful then it would need highly motivated
people to run the show by working as groups to achieve towards the goal.
• You might just assume that your staff is motivated by the paycheck that they get
at month end, or by the opportunity to ‘climb the ladder’ as time goes by.
• However, for many people, motivation isn’t quite that simple. Sure, they need the
paycheck in order to pay the bills, but they also need to find motivation in other
forms
Complexities of employee motivation
• After the Hawthorne experiment it came to light that some group factors and
social and work factors also have an effect on employee motivation. However, the
degree of the above factors varied from one employee to the next
• It also might differ from one organization to the other based on the cultural
factors and nature of tasks, decision making and reward equity
• In addition the employees’ motivation is affected on the bias of whether their
issues are listened by management particularly, when there are changes
implemented in the organization
Complexities of employee motivation
• Here is a theory which we found very interesting from “McClelland’s Human
Motivation Theory”
EMPLOYEE MOTIVATION THE GOOGLE WAY
• Reimbursement of up to $5000 to employees for legal expenses
• Maternity benefits of a maximum of 18 weeks off at about 100 percent pay. The father and mother of the
newborn are given expenses of a maximum of $500 for take-out meals in the initial 3 months they spend
at home with the baby (Take-Out Benefits).
• Financial support for adopting a child (Google’s Adoption Assistance)
• On-site car wash, oil change, bike repair, dry cleaning, gym, massage therapy and hair stylist are available
at the company’s headquarters in Mountain View
• At the Googleplex, there’s an onsite doctor and free fitness center and trainer and facility to wash clothes
among other benefits
• Lunch and dinner is available free of charge, In addition, an assortment of delicious but healthy meals are
available every day, prepared by gourmet chefs.
5. Inter Departmental Conflicts &
Politics Control System
 Different Organization need varied types of skills.
 Their performance is not measurable in same
way.
 organizations also requires regionalization of
their working.
 This inevitably results in conflicts between
different groups.
 This gives rise to Politics Control System
 Designers of control systems will have to control
the reality of this and devise ways to cope with it.
Span of control
• Span of control refers to the number of subordinates a supervisor has.
• Any control system would have to be geared to spot opportunities for the organization
and make full use of them.
• it is quite impossible for managers with their limited talent and time to tackle every such
opportunity competently
• Absolute rationality can never be practically achieved as information can never be
perfect. This concept can be tackled by using the concept of ‘Return on Management’.
Return on Management (ROM)
• A new ratio that gauges the payback from a company’s
scarcest resource: managers’ time and energy.
• ROM = Amount of Productive Organizational Energy
Released / Amount of Management Time and
Attention Invested.
• It indicates how well managers have deployed this
resource among alternative courses of action.

Más contenido relacionado

La actualidad más candente

Strategic role of compensation, strategic compensation policy, total compensa...
Strategic role of compensation, strategic compensation policy, total compensa...Strategic role of compensation, strategic compensation policy, total compensa...
Strategic role of compensation, strategic compensation policy, total compensa...Ramona Beharry
 
HRP(Human Resources Planning
HRP(Human Resources PlanningHRP(Human Resources Planning
HRP(Human Resources PlanningRahul Mahida
 
Voluntary retirement scheme
Voluntary retirement schemeVoluntary retirement scheme
Voluntary retirement schemeAshish Jain
 
Mutually Supportive Management Systems
Mutually Supportive Management SystemsMutually Supportive Management Systems
Mutually Supportive Management SystemsSuryadev Maity
 
Role of hr in mergers and acquisitions
Role of hr in mergers and acquisitionsRole of hr in mergers and acquisitions
Role of hr in mergers and acquisitionsQarib Raza
 
International labour relations
International labour relationsInternational labour relations
International labour relationskoshyligo
 
Approaches to international compensation
Approaches to international compensationApproaches to international compensation
Approaches to international compensationSHAMSEER PADAYAN
 
HRD culture & climate
HRD culture & climateHRD culture & climate
HRD culture & climateE P John
 
Stream analysis - comprehensive OD interventions - Organizational Change an...
Stream analysis -  comprehensive OD interventions -  Organizational Change an...Stream analysis -  comprehensive OD interventions -  Organizational Change an...
Stream analysis - comprehensive OD interventions - Organizational Change an...manumelwin
 
Organizational development interventions
Organizational development interventionsOrganizational development interventions
Organizational development interventionsDebbie Nell Geronimo
 
Trends in human resource management
Trends in human resource managementTrends in human resource management
Trends in human resource managementJoel Prakash
 
International HRM – Staffing Approaches
International HRM – Staffing ApproachesInternational HRM – Staffing Approaches
International HRM – Staffing ApproachesOnicEdu
 

La actualidad más candente (20)

Strategic role of compensation, strategic compensation policy, total compensa...
Strategic role of compensation, strategic compensation policy, total compensa...Strategic role of compensation, strategic compensation policy, total compensa...
Strategic role of compensation, strategic compensation policy, total compensa...
 
HRP(Human Resources Planning
HRP(Human Resources PlanningHRP(Human Resources Planning
HRP(Human Resources Planning
 
human resource outsourcing
human resource outsourcinghuman resource outsourcing
human resource outsourcing
 
Voluntary retirement scheme
Voluntary retirement schemeVoluntary retirement scheme
Voluntary retirement scheme
 
Business policy
Business policy Business policy
Business policy
 
Mutually Supportive Management Systems
Mutually Supportive Management SystemsMutually Supportive Management Systems
Mutually Supportive Management Systems
 
Intro shrm 1
Intro shrm 1Intro shrm 1
Intro shrm 1
 
Role of hr in mergers and acquisitions
Role of hr in mergers and acquisitionsRole of hr in mergers and acquisitions
Role of hr in mergers and acquisitions
 
International labour relations
International labour relationsInternational labour relations
International labour relations
 
Planning concepts and strategies
Planning concepts and strategiesPlanning concepts and strategies
Planning concepts and strategies
 
Approaches to international compensation
Approaches to international compensationApproaches to international compensation
Approaches to international compensation
 
HRD culture & climate
HRD culture & climateHRD culture & climate
HRD culture & climate
 
Strategic managent
Strategic managentStrategic managent
Strategic managent
 
Stream analysis - comprehensive OD interventions - Organizational Change an...
Stream analysis -  comprehensive OD interventions -  Organizational Change an...Stream analysis -  comprehensive OD interventions -  Organizational Change an...
Stream analysis - comprehensive OD interventions - Organizational Change an...
 
Hrd audit
Hrd auditHrd audit
Hrd audit
 
Organizational development interventions
Organizational development interventionsOrganizational development interventions
Organizational development interventions
 
Hr intervention
Hr interventionHr intervention
Hr intervention
 
Trends in human resource management
Trends in human resource managementTrends in human resource management
Trends in human resource management
 
Shrm notes
Shrm notesShrm notes
Shrm notes
 
International HRM – Staffing Approaches
International HRM – Staffing ApproachesInternational HRM – Staffing Approaches
International HRM – Staffing Approaches
 

Similar a MCS- Tension

Era of Disposable Worker
Era of Disposable Worker Era of Disposable Worker
Era of Disposable Worker Aniket Joshi
 
When the Money Runs Out: Retaining and Motivating Long Term Employees Without...
When the Money Runs Out: Retaining and Motivating Long Term Employees Without...When the Money Runs Out: Retaining and Motivating Long Term Employees Without...
When the Money Runs Out: Retaining and Motivating Long Term Employees Without...HRsoft - Talent Management Software
 
Cb12e basic ppt ch09
Cb12e basic ppt ch09Cb12e basic ppt ch09
Cb12e basic ppt ch09Eric
 
Strategic Remuneration - Using remuneration to enhance performance
Strategic Remuneration - Using remuneration to enhance performanceStrategic Remuneration - Using remuneration to enhance performance
Strategic Remuneration - Using remuneration to enhance performanceGeorge Vorster
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource ManagementJehanZaib Khan
 
Goal setting and motivation
Goal setting and motivationGoal setting and motivation
Goal setting and motivationEdz Gapuz
 
BA 208 Chapter 11 power point
BA 208 Chapter 11 power pointBA 208 Chapter 11 power point
BA 208 Chapter 11 power pointBealCollegeOnline
 
Effective reward and incentive scheme for effective organizations
Effective reward and incentive scheme for effective organizationsEffective reward and incentive scheme for effective organizations
Effective reward and incentive scheme for effective organizationsAlexander Decker
 
Evaluating performance management systems
Evaluating performance management systemsEvaluating performance management systems
Evaluating performance management systemstunbugang
 
Human Resource Management and Motivation
Human Resource Management and MotivationHuman Resource Management and Motivation
Human Resource Management and MotivationAmmar Faruki
 
Human Resource & Motivation
Human Resource & MotivationHuman Resource & Motivation
Human Resource & MotivationShailesh Nema
 
Human Resource Management, Motivation, and Labor Management Relations
Human Resource Management, Motivation, and Labor Management RelationsHuman Resource Management, Motivation, and Labor Management Relations
Human Resource Management, Motivation, and Labor Management RelationsSD Paul
 
Five factors affecting organizational design.ppt
Five factors affecting organizational design.pptFive factors affecting organizational design.ppt
Five factors affecting organizational design.pptarunsvhec
 
28 Designing a Total Rewards Program 4 The followi.docx
28   Designing a Total Rewards Program 4 The followi.docx28   Designing a Total Rewards Program 4 The followi.docx
28 Designing a Total Rewards Program 4 The followi.docxgilbertkpeters11344
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource Managementshielacatindig
 

Similar a MCS- Tension (20)

Era of Disposable Worker
Era of Disposable Worker Era of Disposable Worker
Era of Disposable Worker
 
Gerhart14e chap9
Gerhart14e chap9Gerhart14e chap9
Gerhart14e chap9
 
When the Money Runs Out: Retaining and Motivating Long Term Employees Without...
When the Money Runs Out: Retaining and Motivating Long Term Employees Without...When the Money Runs Out: Retaining and Motivating Long Term Employees Without...
When the Money Runs Out: Retaining and Motivating Long Term Employees Without...
 
Cb12e basic ppt ch09
Cb12e basic ppt ch09Cb12e basic ppt ch09
Cb12e basic ppt ch09
 
Strategic Remuneration - Using remuneration to enhance performance
Strategic Remuneration - Using remuneration to enhance performanceStrategic Remuneration - Using remuneration to enhance performance
Strategic Remuneration - Using remuneration to enhance performance
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource Management
 
HR 202 Chapter 01
HR 202 Chapter 01HR 202 Chapter 01
HR 202 Chapter 01
 
Goal setting and motivation
Goal setting and motivationGoal setting and motivation
Goal setting and motivation
 
BA 208 Chapter 11 power point
BA 208 Chapter 11 power pointBA 208 Chapter 11 power point
BA 208 Chapter 11 power point
 
Effective reward and incentive scheme for effective organizations
Effective reward and incentive scheme for effective organizationsEffective reward and incentive scheme for effective organizations
Effective reward and incentive scheme for effective organizations
 
Evaluating performance management systems
Evaluating performance management systemsEvaluating performance management systems
Evaluating performance management systems
 
Human Resource Management and Motivation
Human Resource Management and MotivationHuman Resource Management and Motivation
Human Resource Management and Motivation
 
HR 202 Chapter 09
HR 202 Chapter 09HR 202 Chapter 09
HR 202 Chapter 09
 
Human Resource & Motivation
Human Resource & MotivationHuman Resource & Motivation
Human Resource & Motivation
 
Human Resource Management, Motivation, and Labor Management Relations
Human Resource Management, Motivation, and Labor Management RelationsHuman Resource Management, Motivation, and Labor Management Relations
Human Resource Management, Motivation, and Labor Management Relations
 
Pay-for-Performance.pptx
Pay-for-Performance.pptxPay-for-Performance.pptx
Pay-for-Performance.pptx
 
Five factors affecting organizational design.ppt
Five factors affecting organizational design.pptFive factors affecting organizational design.ppt
Five factors affecting organizational design.ppt
 
28 Designing a Total Rewards Program 4 The followi.docx
28   Designing a Total Rewards Program 4 The followi.docx28   Designing a Total Rewards Program 4 The followi.docx
28 Designing a Total Rewards Program 4 The followi.docx
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource Management
 
Managing human capital
Managing human capitalManaging human capital
Managing human capital
 

Más de Anjay Rajanahalli

Más de Anjay Rajanahalli (7)

Operational efficiency of Jyothi Henkel
Operational efficiency of Jyothi HenkelOperational efficiency of Jyothi Henkel
Operational efficiency of Jyothi Henkel
 
Konkan railways
Konkan railwaysKonkan railways
Konkan railways
 
Responsibility centers in MCS
Responsibility centers in MCSResponsibility centers in MCS
Responsibility centers in MCS
 
Retail Insurance
Retail InsuranceRetail Insurance
Retail Insurance
 
Project Roles Assignment
Project Roles AssignmentProject Roles Assignment
Project Roles Assignment
 
Jayadeva v/s Narayana Health Hospitals
Jayadeva v/s Narayana Health HospitalsJayadeva v/s Narayana Health Hospitals
Jayadeva v/s Narayana Health Hospitals
 
ISRO v/s NASA
ISRO v/s NASAISRO v/s NASA
ISRO v/s NASA
 

Último

Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsStephan Koning
 
Roadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint PresentationRoadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint Presentationgdscghrcem
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementCIToolkit
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationCIToolkit
 
An Important Step Toward Process Improvement
An Important Step Toward Process ImprovementAn Important Step Toward Process Improvement
An Important Step Toward Process ImprovementCIToolkit
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanStefan Wolpers
 
The Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectThe Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectCIToolkit
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenolgaz9
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsCIToolkit
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingCIToolkit
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.azischin
 
A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingCIToolkit
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersMahmoud Rabie
 
Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA StudentsManickam Gajapathy
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioChristopher Totten
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AIKye Andersson
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksCIToolkit
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfBALASUNDARESAN M
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMGloria Chow
 

Último (20)

Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outs
 
Roadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint PresentationRoadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint Presentation
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process Optimization
 
An Important Step Toward Process Improvement
An Important Step Toward Process ImprovementAn Important Step Toward Process Improvement
An Important Step Toward Process Improvement
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna Rothman
 
The Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectThe Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and Effect
 
Capacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slidesCapacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slides
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteen
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity Diagrams
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value Mapping
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.
 
A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem Solving
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
 
Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA Students
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the Studio
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AI
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba Walks
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdf
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EM
 

MCS- Tension

  • 2. Context 1. Balancing Tensions in control system 2. Six tensions in control system 3. Profit, growth and control 4. Conflicts between short term and long term goals 5. Conflicts among stake holders 6. Complexities of employee motivation 7. Inter-departments conflicts
  • 3. Balancing Tensions in Control System Implementing control system in organization will have several conflicts. Management Control system of modern days are always knotted with tensions. The Katho Upanishad, it is veritably like walking on the razors edge.
  • 4. Six Sources of Tensions • Tension between profit, growth and control • Tensions between long-term and short-term goals Tensions arising due to the need to make strategic choices • Tension between stakeholders • Tension between varying and conflicting motivation of employees • Tension between different segments of organization Tensions due to goal divergence • Tensions between the desire to seek opportunity and constraint due to limitation of span of control Tensions due to limitations managerial of cognitive powers
  • 5. 1.Profit, Growth and Control Profit GrowthControl  Increase Growth and Market share via heavy advertising and low pricing.  Controls must be set in place, to ensure long term sustainability.  Examples
  • 6. Example-2: No Controls on growth and profit.  Enron, in the late 1990s had reported falsely staggering numbers of profit by making use of a loophole in the accounting practices, using the mark-to-market practice. Eventually, the company was forced to declare bankruptcy.  Related link: http://www.investopedia.com/updates/enro n-scandal-summary/
  • 7. 2. CONFLICTS BETWEEN LONG TERM AND SHORT TERM GOALS
  • 8. 2. CONFLICTS BETWEEN LONG TERM AND SHORT TERM GOALS Short Term Long Term Methods of measurement of performance are simpler. Methods of measurement of performance are extremely uncertain and difficult. Strongly governed by financial output based on temporary results. Focused on financial output but mostly on permanent/long lasting results. Less creativity and more process involved. More creativity along with a specific process. Focused on Results. Focused on Innovation and overall good. Rewarding employees regularly. More tuned to long-term achievement.
  • 10. CONCEPT OF GOAL CONGRUENCE  Individuals working towards their Goals.  Organizational fulfillment of goals.  In order to synergize , motivation and planning are needed.  Success lies in how close these two can be brought.
  • 13. RESULT IS ACCEPTANCE OF GOALS WITH SATISFACTION
  • 14. 3. Conflict Among stakeholders  Stakeholders include shareholders, managers or employees, customers, suppliers, lenders or government agencies and the public at large.  Areas of interest of each stakeholder may be different and it can lead to  Control systems will have to satisfy the expectations of the all the stakeholders.  Balancing the interests of stakeholders is a continuous process and it can lead to tensions in the control systems
  • 15. 6. Complexities of employee motivation • When it comes to employees, MCS – Management Control System all three needs to be viewed in different angles rather then like a SOP / Macro or Micro Management or just forming a community where there is no involvement. • If an Organization needs to be successful then it would need highly motivated people to run the show by working as groups to achieve towards the goal. • You might just assume that your staff is motivated by the paycheck that they get at month end, or by the opportunity to ‘climb the ladder’ as time goes by. • However, for many people, motivation isn’t quite that simple. Sure, they need the paycheck in order to pay the bills, but they also need to find motivation in other forms
  • 16. Complexities of employee motivation • After the Hawthorne experiment it came to light that some group factors and social and work factors also have an effect on employee motivation. However, the degree of the above factors varied from one employee to the next • It also might differ from one organization to the other based on the cultural factors and nature of tasks, decision making and reward equity • In addition the employees’ motivation is affected on the bias of whether their issues are listened by management particularly, when there are changes implemented in the organization
  • 17. Complexities of employee motivation • Here is a theory which we found very interesting from “McClelland’s Human Motivation Theory” EMPLOYEE MOTIVATION THE GOOGLE WAY • Reimbursement of up to $5000 to employees for legal expenses • Maternity benefits of a maximum of 18 weeks off at about 100 percent pay. The father and mother of the newborn are given expenses of a maximum of $500 for take-out meals in the initial 3 months they spend at home with the baby (Take-Out Benefits). • Financial support for adopting a child (Google’s Adoption Assistance) • On-site car wash, oil change, bike repair, dry cleaning, gym, massage therapy and hair stylist are available at the company’s headquarters in Mountain View • At the Googleplex, there’s an onsite doctor and free fitness center and trainer and facility to wash clothes among other benefits • Lunch and dinner is available free of charge, In addition, an assortment of delicious but healthy meals are available every day, prepared by gourmet chefs.
  • 18. 5. Inter Departmental Conflicts & Politics Control System  Different Organization need varied types of skills.  Their performance is not measurable in same way.  organizations also requires regionalization of their working.  This inevitably results in conflicts between different groups.  This gives rise to Politics Control System  Designers of control systems will have to control the reality of this and devise ways to cope with it.
  • 19. Span of control • Span of control refers to the number of subordinates a supervisor has. • Any control system would have to be geared to spot opportunities for the organization and make full use of them. • it is quite impossible for managers with their limited talent and time to tackle every such opportunity competently • Absolute rationality can never be practically achieved as information can never be perfect. This concept can be tackled by using the concept of ‘Return on Management’.
  • 20. Return on Management (ROM) • A new ratio that gauges the payback from a company’s scarcest resource: managers’ time and energy. • ROM = Amount of Productive Organizational Energy Released / Amount of Management Time and Attention Invested. • It indicates how well managers have deployed this resource among alternative courses of action.