People Controls

In Management Control personnel controls build on employees’ natural tendencies to control themselves, because most people have a conscience that leads them to do what is right; find self-satisfaction when they do a good job and see their organization succeed.� Labels:

• Self-control
• Intrinsic motivation
• Ethics and morality
• Trust and atmosphere
• Loyalty

People controls ensure that employees ...

• Will control their own behaviors
  • Personnel control
  • Self-monitoring
• Will control each others’ behaviors
  • Cultural controls
  • Mutual-monitoring�
• People controls are part of virtually every management control system + becoming more important in … “flatter and leaner organizations with empowered employees.”

Methods to implement personnel controls

Generally, it is about “finding the right people, giving them a good � work environment and the necessary resources” …�

• Selection and placement
  • Finding the right people to do a particular job.
• Training
  • Give employees a greater sense of professionalism;
  • Create interest in the job by helping employees to�understand their job better.
• Job design + provision of necessary resources
  • So that motivated and qualified employees have a high�probability of success (e.g., equipment, staff support,�freedom from interruption, etc.)

People controls

• Must always be relied on to a certain extent;
• Have relatively few harmful side-effects;
• Involve relatively low out-of-pocket costs.
• However, it is rare that people controls will be sufficient.�In most cases, it is necessary to supplement them with …
  • Action Controls
  • Results Controls

Maybe, you just shouldn’t put all your trust in people?