Action Controls

In Management Control Action Controls are measures management can take that 'direct' personel to take certain actions.

• Behavioral constraints
  • Physical constraints
    • Locks, passwords, limited access, …
  • Administrative constraints
    • Restriction of decision-making authority;
    • Separation of duties, primarily directed at one control problem: eliminate motivational problems.
• Pre action reviews, Scrutiny of action plans, budgets.
  • Review / modification / approval.���Can potentially address all three control problems:
    • Alleviate lack of direction;
    • Provide motivation;
    • Mitigate personal limitations.

Action accountability

Holding employees accountable for the actions they take. It requires:

• Defining what actions are (un)acceptable;
• Communicating these definitions to employees;
  • e.g., work rules, policies and procedures, codes of conduct.
• Observing or otherwise tracking what happens;
  • • Direct observation / supervision;
    • Periodic tracking (e.g., “mystery shoppers”);
    • Evidence of actions taken (e.g., activity reports).
  • [Rewarding good actions, or] punishing actions that deviate.

It potentially addresses all three control problems.

Pro's

• The most direct form of control
• Tend to lead to documentation�of the accumulation of knowledge as to what works best.
• Organizational memory
• An efficient way of coordination:
  • i.e., they increase the predictability� of actions and reduce the amount� of inter-organizational information� flows to achieve a coordinated� effort.

Con's

• Only for highly routinized jobs
• May discourage creativity, innovation, and adaptation
• May cause sloppiness
• May cause negative attitudes
  • e.g., little opportunity for� creativity and self-� actualization
• Sometimes very costly