Increasing Safety and Security at O'Hare Airport: Is More Control Necessary?

1. Chapter 6 Control

2. What Would You Do? • Safety and security at O’Hare airport will increase. • Are better trained security personnel needed? • Will travelers be willing to pay and arrive earlier for greater security?

3. Learning ObjectivesBasics of Control • describe the basiccontrol process. • answer the question: Is control necessary or possible? After discussing this section, you should be able to:

4. The Control Process Establish clear standards Compare actual to desired performance Take corrective action, if needed Is a dynamic process Consists of three basic methods

5. Setting Standards • Determine what should be benchmarked • Identify companies against which to benchmark standards • Collect data on other companies’ performance standards

6. Cybernetic Control Process Actual Performance Measure Performance Compare with Standard Identify Deviations Desired Performance Implement Program for Corrections Develop Program for Corrections Analyze Deviations Adapted from Figure 6.1

7. Basic Control Methods • Feedback control • gather information about performance deficiencies after they occur • Concurrent control • gather information about performance deficiencies as they occur • Feedforward control • gather information about performance deficiencies before they occur

8. Is Control Necessary or Possible? Is more control necessary? Is more control possible? What should be done if more control is necessary but not possible?

9. Is More Control Necessary? • Degree of dependence • the extent to which a company needs a particular resource to accomplish its goals • Resource flow • the extent to which a company has easy access to critical resources

10. Is More Control Possible? • Cost of control • direct costs of the control • unintended costs • Cybernetic feasibility • the extent to which it is possible to implement each step in the control process • if a step cannot be implemented, the control may not be possible

11. Quasi-Control: When Control Isn’t Possible • Reducing dependence • choose to abandon or change goals • when control over a critical resource is not possible • Restructure dependence • exchange dependence on one critical resource for dependence on another

12. Is Control Necessary or Possible? Expected resource flows unacceptable? Regulation cost acceptable? Dependence sufficiently high? Goods fixed? Response: Cybernetics feasible? yes yes yes yes Regulate Dependence no no no yes Restructure Dependence no Do Nothing no Reduce Dependence Adapted from Figure 6.2

13. Learning ObjectivesHow and What to Control • discuss the various methods that managers can use to maintain control. • describe the behaviors, processes, and outcomes that managers are choosing to control in today’s organizations. After discussing this section, you should be able to:

14. Control Methods Bureaucratic Objective Normative Concertive Self-Control

15. Bureaucratic • Top-down control • Use rewards and punishment to influence employee behaviors • Use polices and rules to control employees • Often inefficient and resistant to change

16. Objective • The use of observable measures • Behavioral control • regulate employee behaviors and actions • managers monitor and shape employee behaviors • Output control • measure employee outputs • focus is on outcomes not behaviors

17. Normative Control • Company values and beliefs guide employee behavior and decisions • Cultural norms not rules, guide employees • Created by: • careful selection of employees • role-modeling and retelling of stories

18. Concertive Controls • Employees are guided by the beliefs of work groups • Autonomous work groups • operate without managers • group members control processes, output, and behaviors

19. Self-Control • Employees control their own behavior • Employees make decisions within well-established boundaries • Management and employees set goals and monitor their own progress

20. What to Control Balanced Scorecard Economic Value Added Customers Defections Quality Waste and Pollution

21. Balanced Scorecard • Managers look beyond traditional financial measures • Managers set specific goals in each of four areas • Helps minimize the chances of suboptimization

22. Controlling Economic Value Added • The amount by which profits exceed the cost of capital in a given year • Important because: • shows if a profit center is paying for itself • focuses attention on specific departments • encourages creative ways to improve organizational performance

23. Controlling Customer Defections • The rate by which customers are leaving the company • Don’t rely completely on customer satisfaction surveys • Easier to retain a customer, than get new ones

24. Controlling Quality • Internal perspective • Quality is usually measured three ways: • excellence • value • conformance to expectations

25. Controlling Waste and Pollution • Often an over-looked area • Three strategies for waste prevention and reduction • good housekeeping • material/product substitution • process modification

26. Four Levels of Waste Minimization Waste Prevention & Reduction Recycle & Reuse Waste Treatment Waste Disposal Adapted from Figure 6.4

27. What Really Happened? • Must first determine current safety and security performance • New technology makes increased security possible, without significant increases in costs or check-in times