CONTROLLING PERFORMANCE - PART 1

E2 Chapter 5
Control is a primary task and is the process of ensuring the operations proceed according to
plan.

The purpose of Organisational Control:

Fundamental to the achievement of organisational strategy is the contribution of the

human element of the organisation. In this respect human resources are seen as valuable
assets for the organisation however benefits obtained from these assets come at a cost.

The recruitment, retention and training of employees is costly, especially where their
knowledge, skills and experience are expected to generate competitive advantage.

Hence, the effective management of human resources is a vital part of organisational

success. In many organisations, particularly service organisation, the investment in human
resources is significant. CMAs will be involved in ensuring that the investment being made
in human resources is worthwhile and is generating value and advantage for the
organisation.

Human resource management in its broadest sense is concerned with

management decisions and practices associated with people
Policies, procedures and best practice:

For many organisations the main mechanisms of control and influence relate to setting up
HR policies and procedures.

For example, legislation on equality and diversity is translated into a set of policies and
procedures that make it much easier for managers to follow, thus ensuring that
legislation is adhered to.

Similarly, clear procedures for grievance and disciplinary action are established to ensure
that managers do not unwittingly break the law, leaving the organisation exposed to the
risk of legal action, but also to ensure that employees' rights are protected.

Most organisations will insist that employees undergo training to ensure that they are
aware of the policies and procedures, have a system where this is acknowledged and link
this to disciplinary policies.

HR procedures and policies help in exercising control and supervision.

MANAGEMENT BY OBJECTIVES
HEALTH AND SAFETY

A legal requirement which management must adhere to is health and safety legislation.
Management have a responsibility to manage the health and safety risks in their workplace.
They must think about what, in their organisation, might cause harm to people and ensure
that they are doing enough to prevent that harm.

Benefits

Legal Company Preserve

Cost savings
obligations image wellbeing of
on accidents
met protected employees
Health and safety executive -

Safety committee and

meetings –

Difference between safety committee and meetings:

Safety training:

All these procedures and trainings, etc need to be monitored regularly. There should be a
monitoring policy in place.
DISCIPLINE
• Maintaining discipline (learning) among employees is an integral function of
management.

• Discipline is present when the members of the enterprise follow goals or objectives
sensibly without overt conflict and conduct themselves according to the standards of
acceptable behaviour.

• Discipline therefore can be considered as positive when employees willingly follow or

go beyond the rules of the enterprise. Discipline is negative when employees follow
the rules over-strictly, or disobey regulations and violate standards of acceptable
behaviour.

• The main purpose of taking disciplinary action is to achieve a change in behaviour of

employees so that future action is unnecessary.

• Process of handling disciplinary issues:

The Oral Written

Suspension Demotion Dismissal
informal warning warnings
 Handling discipline

Consider
Encourage Follow
Act Gather Be each case Suspension
improveme Stay calm disciplinary
with pay
promptly facts consistent on its procedures
nt
merits
SELF DISCIPLINE

Self-discipline is based upon socialisation, producing norms which follow reasonable

standards of acceptable behaviour. Positive self-discipline is based upon the premise that
most employees want to do the right thing.

Most people accept the idea that following instructions and fair rules of conduct is part of
the work ethic.

GRIEVANCE PROCEDURES

If grievance is warranted, take

Discussion with colleague,
to employee's immediate HR is involved
staff or union
superior

Colleague, staff and union rep Distinguish between

Time lines should be set should be allowed to get individual and collective
involved grievance
TRIBUNALS

Resolving dispute without

tribunals

Arbitration Mediation Conciliation

Benefits

Legal Company Preserve

obligations Cost savings image wellbeing of
met protected employees
DISMISSAL

• Under UK law, dismissal is described as termination of employment with or without

notice by the employer, or in the case of constructive dismissal, resignation by the
employee because the conduct of the employer was sufficient to be deemed to have
terminated the contract by the employer’s actions.

• Dismissal without notice is usually wrongful dismissal, hat is breach of the contract of
employment; it may or may not also be unfair dismissal.

Fair reasons
for dismissal

a statutory
duty or
Employee's
Employee's restriction other
insufficient Role was
wrongful prohibited the substantial fair
capability/ redundant
conduct employment reason
qualification
being
continued.
REDUNDANCY

DIVERSITY AND EQUALITY

Why is commitment
becoming rare

A move from Employees willing to

employee’s effort due to look outside of the
The end of the “job for
loyalty to the company company for
life” ideal.
towards effort expecting advancement
appropriate rewards. opportunities

Psychological contract

Relationship between what the employees believe is

expected of them and what they expect in return
from the employer is called psychological contract.

Coercive Calculative Cooperative

EQUALITY PARAMETERS

Age, gender reassignment

Disability

Marriage and civil partnership

pregnancy

Race, religion or beliefs

Sex, sexual orientation

EQUAL OPPORTUNITIES

To ensure fair and non-discriminatory treatment is given by management to all job

applicants and existing employees.
ORGANISATIONAL CULTURE

• The sum total of the belief, knowledge, attitudes, norms and customs that prevail in
an organisation.
• It can lightly be described as the way things are done in any organisation.

LEVELS OF CULTURE

Artefacts

Espoused
values

Basic
assumptions

Culture exists at three different levels:

Artefacts:

These are the things that can be seen, heard and observed. This is largely the view of the
organisation that the public experience. It can include items such as:
a) Dress codes. Is the dress code formal or informal, for example are uniforms worn?
b) Patterns of behaviour. This is the way people within the organisation are seen as
acting.
c) Physical symbols. This could include logos and branding.
d) Office layout. This includes the facilities and furnishings.
Espoused Values:

These can be identified from stories and the opinions of those within the organisation. It
can include items such as:
a) Language. This is the way people communicate both within and outside the
organisation.
b) Behaviour. This shows what the people in the organisation feel is important. How
people justify what they do. These values can be deep rooted, many will take for
granted that their behaviour is acceptable without questioning it.

Basic assumptions:

These beliefs are so deeply embedded in a culture that members are no longer consciously
aware of them. It can include:
a) Beliefs on environmental issues. If this is important, it will be part of every aspect of
the work done.
b) How people should be treated. This will include human relations policies, customer
relationships etc.
WHY IS CULTURE IMPORTANT?
 Strong culture

Pros Cons

Good communication and

difficult to change
coordination

framework of social identity

creates biases
and sense of belonging

reduces differences between

Stress inappropriate values
employees

May create difficulty in

regulate behaviour
mergers

may not be attuned to

minimise differences
environment

reflect philosophy of
organisation

affects strategies

Influences
on culture

Size Technology diversity Age history ownership