Behavior Control and Output Control are opposing methodologies that managers use in control systems. Organizational requirements are determined by size, objectives and other variables. Control systems are mechanisms “to adjust course if performance falls outside acceptable limits” (Davidson & Griffin, 06), allowing adaptation to change. They include procedures to “monitor, direct, evaluate, and compensate employees” and influence behaviors with the goal of having the best impact on both companies and employees (Anderson & Oliver, 87). Control systems are divided into those that monitor results, and those that monitor individual phases of a process (behaviours), “many sales force systems are a mix of behavior and results-based control”. The choice of a system depends on “the relative costs of measuring behavior versus outcomes and the various forms of uncertainty that create risks in the environment” (Anderson & Oliver, 87). “Organizations may choose to screen employees on entry, incur high screening and staffing costs, and then rely on output checks. Or, organizations can be less selective in choosing employees and rely on behavioral controls by investing heavily in monitoring and training systems” (Challagalla & Shervani, 97). Different systems have their own relative impact on organizations. Managers monitor employee behaviors, directing and evaluating them based on subjective measures of ability and activity; not just results. The manager ensures that employee inputs and behavior reflect his expectations. The results should be at a certain level, long term, if the employee is believed to follow the behaviors defined by the company. “To ensure cooperation the company pays largely on a fixed basis (salary). The firm takes risk to gain control” (Anderson & Oliver, 87). This attracts those who are risk averse and content with a secure source of income and are happy to follow directions and undergo performance reviews. Along with this refuge and security comes employee loyalty and commitment to companies. Managers make decisions to increase or decrease salaries, promote, or discipline employees using “more complex and subjective” assessments based on non-measurable behaviors (Anderson & Oliver, 87). Managers dictate the required level of performance, not market pressures. Management costs increase because more monitoring is required. In
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