9/14/2023 0 Comments Incontrol youtube egIn particular, the airline added to its ability to service airplanes and provided more customer service training for its employees. In response, Delta took important corrective steps. This performance led Delta to rank dead last among the major US airlines and fifteenth out of 18 total carriers (Yamanouchi, 2011a). Data gathered by the federal government revealed that only 77.4% of Delta’s flights had arrived on time during the year. Delta Airlines was forced to face some facts as part of its use of output control. The corrective action was simple: they started receiving their pay via direct deposit rather than through the mail. In an ironic example, a group of post office workers in Pensacola, Florida, were once disappointed to learn that their paychecks had been lost-by the US Postal Service. In each of these cases, executives must decide what level of performance is acceptable, communicate expectations to the relevant employees, track whether performance meets expectations, and then make any needed changes. Examples from the business world include the number of hits a website receives per day, the number of microwave ovens an assembly line produces per week, and the number of vehicles a car salesman sells per month (Table 10.5). Output control focuses on measurable results within an organization. Stephen Covey said “start with the end in mind.” Output control is one way decision makers put this into practice. Different organizations emphasize different types of control, but most organizations use a mix of all three types. Three basic types of control systems are available to executives: (1) output control, (2) behavioral control, and (3) clan control. Organizational control systems allow executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns. Executives create strategies trying to achieve their organization’s vision, mission, and goals. In addition to creating an appropriate organizational structure, effectively executing strategy depends on the skillful use of organizational control systems. 10.5 Creating Organizational Control Systems
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