Output controls place the focus squarely on the output, with significantly less attention on the behaviors that lead to the output. For example, when a sales person has a quota, that is an output control because the behavior is driven entirely by the end result. Input controls works by placing constraints on process inputs as a means of exerting control. An example might be setting a strict budget for a project. This focuses the manager on sticking to that budget, a process that the organization feels will result in the goals being achieved.
Benchmarking is useful for most firms. The exception would be firms that for one reason or another are not in a competitive environment. For those firms that are in a competitive environment, they can benefit from benchmarking because the benchmark sets the upper potential limit for the activity in question. Benchmarking therefore has a couple of main benefits. One is that it gives the company a target at which to shoot. The other is that benchmarking allows companies to set goals that are realistic. Having these goals provides extra motivation in part because workers know that those results can be achieved. Without the benchmark, they might feel that their targets are too high, or that there is no reason to pursue them.
Q4) Creating an entrepreneurial culture in an organization is not always easy. It is doubly difficult if the existing culture is not entrepreneurial because of organizational inertia. However, once it is understood that there are some barriers preventing the entrepreneurial culture for taking hold, then the company can undertake the steps necessary to remove those barriers. The first barrier is fear. Often, companies will have a culture that discourages risk-taking. Thus, the first step is to make sure that employees know there will be no negative repercussions for taking...
Firms that utilize input controls may allocate personnel and resources in accordance with specific objectives but this leaves little resources left over for other projects that may come up. Additionally, firms that use behavioral controls may not be facilitating an entrepreneurial culture. Output controls give employees much more flexibility to undertake entrepreneurial activities.
Lastly, to reduce inertia there needs to be a sophisticated communications program and even some incentives. This will allow the workforce to better understand the company's commitment to an entrepreneurial culture. When workers see that the firm is truly committed, so too do they become committed.
Creative thinking is essential within any organization that faces a changing environment. Creative solutions allow the firm to handle the environment better and unearth new opportunities at a faster rate. In my organization, creativity is only moderately valued. The company is fairly stable and the business model has not changed much. There are significant barriers to entry so there is not expected to be any major change in the competitive dynamic in the near future. Hence, there is little benefit to promoting creativity, even though it is valued when the need arises.
Works Cited:
McNamara, Carter. (2008). Basics of Action Planning. Free Management Library. Retrieved May 9, 2009 from http://managementhelp.org/plan_dec/str_plan/actions.htm
No author. (2009). Create an Entrepreneurial Culture Among Your Employees. Score. Retrieved May 9, 2009 from http://www.score.org/culture_employees.html
Wheelen, T.L., and Hunger D.J.,(2008). Strategic Management and Business
Policy, (11th ed) Saddle River, N.J.: Pearson Prentice Hall
