People Controls

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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 …

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