17.8 The Control- and Involvement-Oriented Approaches to Planning and Controlling
3 min read•june 25, 2024
Planning and controlling are crucial management functions. They involve setting goals, creating strategies, and ensuring execution aligns with objectives. Different approaches exist, ranging from top-down control to participative involvement, each suited to specific environments and tasks.
Managers must adapt their planning and control methods based on environmental uncertainty. In stable settings, efficiency and standardization are key. In uncertain environments, flexibility and innovation become critical. Effective managers balance control and involvement to optimize organizational performance.
Approaches to Planning and Controlling
Control vs involvement approaches
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Top-down planning and decision-making where upper management sets goals and strategies
Centralized control with power concentrated at the top of the organizational hierarchy (C-suite executives)
Emphasis on strict adherence to plans and procedures to ensure consistency and predictability
Suitable for stable environments and routine tasks that require efficiency and standardization (assembly line production)
Participative planning and decision-making that includes input from employees at various levels
Decentralized control with authority distributed throughout the organization
Emphasis on flexibility and adaptation to changing circumstances
Encourages employee input and creativity to foster innovation and problem-solving
Suitable for dynamic environments and complex tasks that require agility and responsiveness (software development)
Promotes through active participation in decision-making processes
Employee roles in organizational structures
Hierarchical structure with clear chain of command and vertical communication channels
Specialized tasks and roles with well-defined job descriptions and responsibilities
Limited employee participation in planning and decision-making, as directives come from above
Strict adherence to rules and procedures to maintain order and consistency
Suitable for stable environments and routine tasks that prioritize efficiency (manufacturing)
Flat structure with decentralized authority and horizontal communication channels
Flexible and adaptable roles that can change based on organizational needs
High employee involvement in planning and decision-making through collaborative processes
Emphasis on collaboration and teamwork to leverage diverse skills and perspectives
Suitable for dynamic environments and complex tasks that require creativity and innovation (research and development)
Fosters an that values adaptability and open communication
Management Responsibilities and Control Methods
Management adaptations to uncertainty
Stable environments
Management focuses on efficiency and optimization to maximize productivity and minimize costs
Emphasis on standardization and control to ensure consistent quality and performance
Reliance on formal rules, procedures, and budgets to guide employee behavior and resource allocation
Centralized decision-making by top management to maintain alignment with organizational goals
Moderately uncertain environments
Management balances efficiency and adaptability to respond to changing market conditions
Emphasis on coordination and problem-solving to address emerging challenges and opportunities
Use of performance targets and benchmarks to monitor progress and make data-driven decisions
Increased employee involvement in decision-making to tap into frontline expertise and insights
Highly uncertain environments
Management focuses on innovation and responsiveness to stay ahead of the competition
Emphasis on flexibility and rapid adaptation to capitalize on new opportunities and mitigate risks
Reliance on direct communication and informal controls to enable quick decision-making and course corrections
Decentralized decision-making and empowered employees to encourage proactive problem-solving and experimentation
Strategic Planning and Change Management
involves long-term goal setting and resource allocation to achieve organizational objectives
focuses on guiding organizations through transitions and implementing new initiatives
Both processes emphasize to enhance organizational performance and competitiveness