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Contents
PART 1 .................................................................................................................................................... 2 Introduction ..................................................................................................................................... 2 Organisational Controls and Powers Structure in Large Organisations .......................................... 2 Types of Organisational Controls.................................................................................................... 4 Importance of Organisational Controls ........................................................................................... 4 PART 2 .................................................................................................................................................... 5 Ethics and Corporate or Business Ethics ............................................................................................ 5 Theories of Corporate Business Ethics ........................................................................................... 5 CSR ..................................................................................................................................................... 5 Critical Analysis of CSR ..................................................................................................................... 6 Importance of CSR for organisation ............................................................................................... 6 CSR & Volunteer Employees .......................................................................................................... 7 CSR & Beneficiaries in Community ............................................................................................... 7 CSR Practical Examples ................................................................................................................. 7 PART 3 .................................................................................................................................................... 8 PART 3 i .............................................................................................................................................. 8 Corporate Culture............................................................................................................................ 8 Employee Commitment .................................................................................................................. 8 Impact of Corporate Culture & Employees Commitment ............................................................. 8 PART 3 II ............................................................................................................................................ 9 Change in Business environment .................................................................................................... 9 Change Management & Change Models & Features ...................................................................... 9 Features of Change Management .................................................................................................. 11 Case Study .................................................................................................................................... 11 Literature Review.............................................................................................................................. 13

PART 1 Introduction Mullins (1999) cited Urwick (1952) and states that an organisation is based on 10 vital principles and organisational control is one important principal among those 10.Every organisation has a structure and in management perspective organisation structure is to perform two main functions (to achieve its organisational goals) i) Control and ii) Coordination. Whereas organisational control consists of two factors i) Power base and ii) Control mechanism (Scholl, 1998). In management perspective organisational controls are linked with organisational power structure and according to their use they are classified in various kinds and sub types. In organisations management also uses controls to exercise control over individual employee behaviour to enhance organisations performance. Organisational Controls and Powers Structure in Large Organisations Organisational controls are defined as Systematic process through which management regulate organizational activities to make them consistent with the expectations established in plans and to help them achieve all pre determent standards of performance (Lewis et al, 2007: p.405). In short it can be said that controls are systems developed by management to make sure that all organisational plans, functions and resources are working to achieve organisational goal accordingly anticipated performance. According to Lewis et al (2007: p405) there fours steps involved in the development of any effective control. Picture 1.1: Steps Involve in the development of Controls (Lewis, 2006: p407)

Briefly it can be said that organisational controls are vital part of organisation structure and they are part of regionalisation, delegation and separation of duties, authorities, obligations, supervision, review and audit, accountability and competence efforts, and they are the means or systems which enable an organisation to achieve its goals and objectives by putting its organisational activates and resources together (Salaman & Thompson, 1980). And the distribution and origin of controls in an organisation is based on the power base and structure in an organisation specially in large organisations which require more and complex controls than small firms due to their goals and complex operational and departmental nature. Controls are designed while keeping in mind the authority, origin of authority and delegation of authority (Moffett, 1990). Reason et al (1998) identifies four types of organismal controls in large organisations, 1) Administrative controls 2) Social 3) Self controls 4) Technical controls. Whereas

administrative controls consist of rules and procedure (internal control) and output control (external control). Purpose or desired output of control system, outlining the standard for a control system, monitoring of a control system, comparison of set standards and actual output given by control system and timely actions to rectify any errors (if required) caused by control system are five important pillars on which a control system is based upon. Strategic control is important examples of administrative controls and internal control whereas accounting control is an example of internal control (Hitt, 2011). Types of Organisational Controls As briefly discussed earlier controls can be classified into four categories whereas due to the nature of usage controls can be internal or external. And on the basis of strategies of controls organisational controls can be classified into 6 types. 1) Personal centralised control, 2) Bureaucratic control 3) Output control 4) Technological means control 5) HRM control 6) Cultural control. Importance of Organisational Controls Administrative controls are very important for large organisations where behaviour of an individual is being direct by rules and procedures to achieve set organisational goals, where social controls are more effective in family run business where firm has less complex size and decision maker could be easily approached and firm does not require a strict formal disciple to develop firms strategy and accountability of such strategies. Administrative controls are used in large firms at the stage when individual or a group of individual could not resolve the issues generated by the large and complex size of big organisations (Poutziouris et al. 2007). Self-controls are vital at the level of individual, each individual or a group of people has their set norms and controls. Self-control direct such individual or group towards the achievement of the goals. Due to the rapidly changing technological organisational environment, there is another set of controls has been introduced and it is the controls for electronic means and controls through electronic devices and means. Such controls help monitoring the performance through electronic devices and of electronic devices as well (Hitt, 2011). Another which large firms are facing in todays rapidly changing workplace environment is the shift in HRM practices and diverse organisational culture. Such factors has pushed large organisations to develop controls for the measurement, monitoring and rectification of errors

(if require) of organisational diversity, culture and HRM strategies. Such controls significantly helps management to achieve set organisational goals.

PART 2 Ethics and Corporate or Business Ethics Every individual and group has their norms and set disciplines for right and wrongs other than the formal rules and regulations enforced by law, although the debate of right and wrong has never been concluded with an end. In the same way business comply with laws and legal regulations and as well conduct their activities in such a manner to follow certain set moral beliefs and business standards while working towards the achievement of the main organisational goal. In short can be said that business ethics is critical and disciplined examination of individual and organisational behaviour in the business sector for the wellbeing and good of mankind and society while working for the achievement of their individual and organisational business goals. These set standards can written or un- written which influence the decisions and behaviour of an individual and organisation in commerce world (Louche, 2011). Theories of Corporate Business Ethics In corporate sectors there are many factors which impacts upon the right or wrong doings of an individual or group or a firm e.g. culture (organisational and individual culture), existence of any formal business or professional ethics, corporate reward and benefit system etc. In corporate world business ethics are viewed with two main perspectives, i) Share holder perspective ii) Stake holder perspective. According to share holder perspective individual or group or organisations make decisions (ethical) while keeping stake holders benefit in mind which is probability or duty to make money. Where as in stake holders perspective the individual or group or organisations ethical decisions are influenced by the ethical idea of keeping interests of different other individuals or group or organisations associated with, in mind while take any corporate or business ethical decision e.g. employees, creditors, society etc. (Hackett, 2003) CSR Babin et al (2011:p28) cited Elkington who states that life is not driven strictly by either social or financial realities. We may use financial resources to expand and sustain the core value of organization, community, and individual.

CSR and its existence can drived from the idea that companies have unwritten ethical obligation of contributing towards the improvement of society and organisation at different levels and different perspectives instead of just working for profit maximisation or duty of making money (Kaku, 1997). According to Ostas (2004) CSR perceptive, the business ethical norms and it refers to social obligations and duties of an corporate individual or group or firm, the discussions about CSR got attraction in corporate world in 1950 when Bowen (1950) published his work on the legal and social duties of a corporate person. According to Thomas & Colin (2012) the idea of corporate Social Responsibility was first introduced in in the 1920s when fear about corporate powers to infuse the social decision making was highlighted. In todays corporate environment CSR is helping business to generate better business values and it is being considered as vital strategy for the achievement of organisational goals. And CSR is generating shared Value concept in corporate world. Critical Analysis of CSR It has been noticed that not only large firms are the supporters of CSR practices but also SME are supporting strongly to CSR by have sense of obligation towards the local communities and their employees. Importance of CSR for organisation According to Babin et al (2011) in todays corporate world CSR is on top of corporate agendas of firms and a research at Manchester University revels that buyers suppliers of GITO are gaining competitive advantage through the effective implementation CSR principles in their organisations. And CSR is helping such buyers and suppliers to create better corporate values while creating social values and generating better relationship with outside the firm. Implementation of CSR polices in a firm face many challenges one important is the desire of firm to achieve maximum profit for owners and expand the business, but it has been observed by Babin et al (2011) this organisational aim can be achieved while practicing high CSR standards.

CSR & Volunteer Employees Employees Volunteering schemes are gaining popularity in todays corporate environment the recent example is almost 70,000 volunteer worked during London Olympics 2012. It is considered an effective manner to achieve firms CSR objects while same time contributing towards the employee development. In such schemes organisations, society and employees get benefits. Employees gain variety of benefits such as improvement in confidence, selfesteem, wider exposure, and development of leadership, communication, management, team building and many other skills required for individuals corporate growth (McMahon, 2012). A research conducted by Corporate Citizenship Company discovers that volunteering employees became more motivated to perform to achieve their corporate goals. Such opportunities to employees increase employees job satisfaction and retention (European Foundation of improvement of Living and work, 2012). Although such schemes cost the firm in short term but in long run they save cost of employee job satisfaction, cost of hiring and retaining employee and cost of gaining goodwill among communities. CSR & Beneficiaries in Community CSR not only impacts firm or organisation and employees or prospective employees but also impacts the different individuals, groups and other stake holders in society and communities (European Foundation of improvement of Living and work, 2012). To fulfil their CSR obligations firms and employees contribute financially and in term of time for fundraising, developing opportunities for needy people, constructing charity schools and hospitals, and in other so many ways which put positive impact on local community, help governments and local authorities to lessen their social pressures and bring improvement in the life of concerned beneficiaries of such projects e.g. London marathon sponsored by Virgin raise money at individual and corporate level to with a fatal diseases like cancer. CSR Practical Examples HSBC support tool kit helped 100 schools and in return bank got appreciation for contributing for a useful resource (Thomas & Colin, 2012). Companies Act (2006) and London Olympics 2012, Tescos school vouchers and Virgins London Marathon (OCOG, 2012).

PART 3 PART 3 i Corporate Culture According Armstrong (2007) shared values, principles, behaviour and norms are the elements which has potential to influence the people in organisation to perform, such elements formulate the culture in an organisations culture. Culture is such important in an organisation that it has direct impact on benefit and pay policies and practices. Positive culture can be developed by linking the cultural environment with performance. Organisational culture is very important for organisations specially for achieving organisational set goals through employee motivation, satisfaction and employee commitment. While in reward management the main values of organisation are linked with culture. Where such main values are formulated by employees beliefs and behaviour which motivate them to act for the betterment of organisation. According to Daft (2009) managers prefer such culture which helps than to design and implement organisational strategies to achieve set organisational goals. Different organisations have different cultures, and cultures can be assessed on two axis strategic focus and needs of environment at four different dimensions 1) External 2) Internal 3) Flexibility 4) Stability. There are different types of cultures based on said dimensions e.g. Adoptability Culture, Mission Culture, Clan culture and Bureaucratic culture. Armstrong (1997) states a case study of LloydsTsb bank and states that financial sectors redesigns a new culture, the culture of performance appraisal and linkage of reward with the performance. Employee Commitment According to Kusluvan (2003) employees commitment is vital to employees motivation to produce required performance outcome. Many researchers such as porter (1979) has concluded that employee commitment is employees pride, loyalty and dedication to perform for the achievement of set organisational goals. And employees commitment is directly linked with employees intention to stay with the firm. There are many factors which impact the employees commitment, one most important factor is the organisational culture. Impact of Corporate Culture & Employees Commitment Many organisations has developed a culture of linkage of reward and benefits with the employee performance where as it has been stated that employee commitment has direct link with employee performance. This mean corporate culture of performance-reward culture has direct impact upon performance and commitment.

According Rohm (2006) it is important to invest in designing the system for monitoring the corporate culture, such efforts enhances employees performance which result into better revenue for the firm. Armstrong argues that due to tough market competition in financial sector all major banks are trying to have best employees with improved services. So the corporate culture of bringing improved services and performance culture helps employees to retain within the organisation and spend their all energies towards the achievement of their organisational goal, whereas lack of performance culture motivates employees to find different horizon where they feel more satisfied, motivated and hence committed with the organisation. PART 3 II Change in Business environment It is considered that only one thing never changes and that is change. In todays globally changing and innovate business environment, new laws, firms desire to expanded are factors which cause firms to go through a change to achieve organisational goals and gain competitive advantages. (Heller & Handle, 2008).Initiate, monitor and complete any change is appeared as a big challenge for managers. Change Management & Change Models & Features Kotter (2010:1979) states that 70% of change efforts fails. They are many factors which impacts change but most important is the resistance to change. Puthran (2008) described change management as the management of resistance to change. Change management is a complex process consists of many sub process. According to Lewin (2010) change management is a three step process. Picture 1.3: Lewin Change Management Model (IC website, 2012)

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Kruger (2012) gave his Ice Berg model of Change Management based on the value management. Picture 1.4: Kruger Model (value based management website, 2012)

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Features of Change Management By considering above mentioned models it can be said that change management is a process (70% management of resistance) with many sub process. In which manager acts as change agent who 1st unfreeze or make organisation environment ready for change, than execute the change and at the end freeze or finalise and completely implement the change. Change management process involves the management of attitude, behaviour and managerial issues management, associated with people involve in any relevant change. Case Study SHAMIQ ltd merged with Allied Mart ltd in 2010, the merger news caused fear and uncertainty among employees and customers. Firm leadership showed their commitment with change and mangers were empowered. Mangers before initiating change assured employees to have same benefits and work opportunities with improved work environment and customers assured that merger will increase firms capacity to answering their needs. Than change agents was identified among employees, regular monitoring and feedback appraisal

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was conducted and at the end of change all promise (made within and outside organisation) was fulfilled, hence a successful change process was completed.

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Literature Review Mullins, L. (1999). Management and Organisational Behaviour. Prentice Hall, London, 5th edition. Moett, J. D. (1990). Delegation of Authority Using Domain Based Access Rules. PhD thesis, Imperial College, University of London. Salaman, G. and Thompson, K., editors (1980). Control and Ideology in Organizations. The Open University Press. Lewis, P. 2006. Management: Challenges for Tomorrow's Leaders (with InfoTrac 1Semester). 5 Edition. South-Western College Pub. Hitt, M. 2011. Strategic Management: Concepts: Competitiveness and Globalization (Concepts (Cengage Learning)). 9 Edition. South-Western College Pub. Poutziouris et al. 2007. Handbook of Research on Family Business (Elgar Original Reference). 1 Edition. Edward Elgar Pub Reason, et al, 1998. Organizational controls and safety: The varieties of rule-related behaviour. Journal of Occupational and Organizational Psychology, 71 (4), pp289-304. Scholl, R. 1998. ORGANIZATIONAL STRUCTURE. [ONLINE] Available at:

http://www.uri.edu/research/lrc/scholl/webnotes/Struture.htm. [Accessed 19 August 12]. Colin & Thomas, 2012. Actionable CSR- enabling socially responsible behaviour. Management Services, 56 (2), pp14-19. Kaku, 1997. The Path of Kyosei. Harvard Business Review, 75 (4), 55-63. Ostas, D, 2004. Cooperate, Comply, or Evade? A Corporate Executives Social Responsibilities with Regard to Law. American Business Law Journal, 41 (4), pp559-594. Babin, et al, 2011. Emerging markets Corporate social responsibility and global it Outsourcing. Communications of the acm, 54 (9), pp28-30. Kotter (2010), the eight step
th

process.

http://kotterinternational.com/KotterPrinciples/ChangeSteps.aspx, 12 August 2012. Heller & handle. 2008, Dorling Kindersley, p.698

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McMahon, J, (2012). Corporate Social Responsibility (Employee Volunteering - the future offer). In Report of Assistant Chief Executive. Oldham Council, 26 March 2012. U.K: Oldham Council.pp.1 11 European Foundation of Living and Work Improvements. 2012. Companies and volunteering. [ONLINE] Available at: http://www.eurofound.europa.eu. [Accessed 01 August 12]. Louche, C. 2011. Innovative CSR. Greenleaf Publishing Hackett, J, 2003. Why Business Ethics. Carnegie Mellon University, pp.1-7 Daft, R. 2009. Organization Theory and Design. 10 Edition. South-Western College Pub. Kusluvan, S. 2003. Managing Employee Attitudes and Behaviours in the Tourism and Hospitality Industry. Edition. Nova Science Pub Inc. Rohm, S, 2006. Corporate Culture - How Corporate Culture is managed in organisations. 1st ed. Germany: Grin Publishing.