Explain the relationship between organizational control and the four building blocks of competitive advantage PDF

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Business Organisation & Management, Tutorial, Explain the relationship between organizational control and the four building blocks of competitive advantage....

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Explain the relationship between organizational control and the four building blocks of competitive advantage. Or gani z at i onalc ont r olhel ps manager s obt ai ns uper i oreffic i enc y ,qual i t y ,r es pons i v eness t o c us t omer s , and i nnov at i on—t he f our bui l di ng bl ock s of compet i t i v e adv ant age. Ac ont r ols y s t em c ont ai nst hemeasur esory ar ds t i c k st hatl etmanager sass es show effici ent l y t heor gani z at i oni spr oduci nggoodsands er v i ces .Effec t i v emanager sc r eat eac ont r ols y s t em t hatcons i s t ent l ymoni t or st hequal i t yofgoodsands er vi cess ot heyc ancont i nuous l yi mpr ov e qual i t y an appr oac ht oc hange t hatgi v est hem a c ompet i t i v e adv ant age.Manager scan hel p mak et hei ror gani z at i onsmor er es pons i v et oc us t omer si ft heydev el opac ont r ols y s t em,suc has aCRM s y s t em,t hatal l owst hem t oev al uat ehow wel lc us t omerc ont ac templ oy eesper f or mt hei r j obs .Suc ces s f uli nnov at i ont ak espl ac ewhenmanager sc r eat eanor gani z at i onals et t i ngi nwhi c h empl oy eesf eelempower edt obec r eat i v eandi nwhi c haut hor i t yi sdecent r al i z edt oempl oy ees , s ot heyf eelf r eet oex per i mentandt ak ec ont r oloft hei rwor kact i vi t i es .

Organizational control helps managers obtain the four building blocks of competitive advantage superior efficiency, quality, responsiveness to customers, and innovation. To determine the efficiency of using resources, managers must be able to accurately measure how many units of inputs are being used to produce a unit of output. A control system contains the measures or yardsticks that let managers assess how efficiently the organization is producing goods and services. Organizational control is important in determining the quality of goods and services because it gives managers feedback on product quality, which is consistently monitored by the control system. Effective organizational control can also increase responsiveness to customers because monitoring employee behavior can help managers to evaluate how well customer contact employees perform their jobs and to find ways to increase employees’ performance. Controlling can raise the level of innovation in an organization. Successful innovation takes place when managers create an organizational setting in which employees feel empowered to be creative and in which authority is decentralized to employees so that they can feel free to experiment and take control of their work activities.

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