Discussion: Managerial Control Mechanisms

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Discussion: Managerial Control Mechanisms

Discussion: Managerial Control Mechanisms

Information technology affects managerial control mechanisms: planning, data, performance measurement and evalua- tion, incentives and rewards.

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• Management control at the individual level is concerned with monitoring (i.e., data collection), evaluating, providing feedback, compensating, and rewarding. It is the job of the manager to ensure that the proper control mechanisms are in place and the interactions between the organization and the information systems do not undermine the managerial objectives.

• Organizational and national culture should be taken into account when designing, managing, and using IS.

K E Y T E R M S assumptions (p. 67) beliefs ( p. 66) bureaucracy (p. 60) culture (p. 66) decision rights (p. 58) enacted values (p. 66) espoused values (p. 66)

flat organizational structure (p. 60) hierarchical organizational

structure (p. 60) matrix organizational

structure (p. 61) networked organizational

structure (p. 61)

observable artifacts (p. 66) organizational strategy (p. 57) social network (p. 63) span of control (p. 60) unity of command (p. 60) values (p. 66)

D I S C U S S I O N Q U E S T I O N S 1. How might IS change a manager’s job?

2. Is monitoring an employee’s work on a computer a desirable or undesirable activity from a manager’s perspective? From the employee’s perspective? How does the organization’s culture impact your position? Defend your position.

3. Consider the brief description of the elastic enterprise. What is an example of a control system that would be critical to man- age for success in elastic enterprise? Why?

4. Mary Kay, Inc. sells facial skin care products and cosmetics around the globe. The business model is to provide one‐on‐one, highly personalized service. More than 500,000 Independent Beauty Consultants (IBCs) sell in 43 markets worldwide. Each IBC runs his or her own business by developing a client base and then providing services and products for sale to those clients. The IBCs were offered support through an e‐commerce system with two major components: mymk.com and Mary


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