Output Controls Research Articles

The Effects of Formal Controls on Supervisee Trust in the Manager in New Product Selling: Evidence from Young and Inexperienced Salespeople in China*

How should sales managers enhance the support and commitment of young, inexperienced salespeople during a new product selling? Some scholars have suggested sales managers should use formal controls (i.e., output and process controls) to develop the salespeople's trust in their benevolence. Drawing on a sample of young, inexperienced salespeople with rather low education selling new products in China's competitive, volatile, and transitional economic environment, the present study investigates the relationship between output and process controls and supervisee trust (i.e., the salesperson's trust in the sales manager). The empirical results of the study suggest that process and output controls have differential effects on supervisee trust. Specifically, the results indicate that process control enhances supervisee trust by itself and also under conditions of intense training for new product selling and when market volatility is perceived as high. However, process control hinders supervisee trust when the manager is long‐term oriented and engages in participative supervision. It was found that output control engenders supervisee trust when the manager is long‐term oriented but hinders supervisee trust when salespeople have undergone intensive training for new product selling. Implications of these results are provided for both researchers and practitioners involved in launching and selling new products.

Performance management in a setting of deficient output controls

Purpose – Sets out to stress the need to adjust performance management to the deficiencies inherent in the output controls within The Netherlands defence forces.Design/methodology/approach – By analysing the management control reforms of the recent past, the paper assesses the scope for a “decision revelation” within the Defence organisation. It develops a framework for disclosure of decentralised decision making focusing on the allocation of labour time within the fixed labour force. Recent developments in the Defence organisation units for officer education and training are used to illustrate the framework.Findings – Management control systems fail because of weaknesses in the management accounting information underlying them. Management accounting information with respect to defence expense budgets does not grasp the relevant decentralised decision making to be controlled. This decision making is primarily concerned with the opportunity costs of the allocation of time within the labour force of the Dut...

Control of the Lyapunov exponents of dynamical systems in the plane with incomplete observation

Control linear systems in the plane are studied under the assumption of incomplete observation and incomplete control. In this situation ordinary static output controls may fail to stabilize the system. That is why special dynamic output feedback controls with finitely many states (hybrid feedback controls) are applied. Necessary and sufficient conditions are offered that guarantee exponential convergence/divergence of the solutions at an arbitrary rate. It is also shown that the general case can be reduced to two particular cases which are treated in detail.

Moving from Input Controls to Output Controls Using the Partnership Approach in Australia's Southern Shark Fishery

The Australian Fisheries Management Authority (AFMA) maintains a firm commitment to managing Federal (Commonwealth) fisheries resources for the benefit of the community as a whole. The AFMA model centres around a partnership approach in which a wide range of stakeholders are actively involved in the process of developing and implementing fisheries management arrangements for Commonwealth fisheries. Central to AFMA's partnership approach is the establishment and operation of Management Advisory Committees and Fisheries Assessment Groups for each major fishery managed by AFMA. AFMA successfully moved the Southern Shark Fishery from input controls to output controls over a period of 5 years. AFMA achieved this by using the partnership approach with the Southern Shark Fishery Management Advisory Committee (SharkMAC) and the Southern Shark Fishery Assessment Group (SharkFAG). In the two year period since output controls were introduced on 1 January 2001 the industry has undergone considerable change. Some fishers are finding it difficult to operate in the current environment. Industry and AFMA must continue to work together under the partnership approach to ensure the school shark stocks are rebuilt and environmental standards are maintained and further improved to ensure the long-term sustainability of the fishery. The Structure of Australian Fisheries Australian fisheries are essentially managed by the Federal government, whose jurisdiction usually extends from 3 nautical miles from the coastline out to 200 nautical miles and more recently with the ratification of United Nations Fish Stocks Agreement onto the high seas for its flagged State vessels. State government fisheries agencies manage inshore and offshore fisheries out to 3 nautical miles. In cases where single stock, area or fishing method management is required, the Federal and State governments generally reach agreement on a single jurisdiction having responsibility for a fishery through an Offshore Constitutional Settlement Arrangement.

Marine reserves with ecological uncertainty

To help manage the fluctuations inherent in fish populations scientists have argued for both an ecosystem approach to management and the greater use of marine reserves. Support for reserves includes empirical evidence that they can raise the spawning biomass and mean size of exploited populations, increase the abundance of species and, relative to reference sites, raise population density, biomass, fish size and diversity. By contrast, fishers often oppose the establishment and expansion of marine reserves and claim that reserves provide few, if any, economic payoffs. Using a stochastic optimal control model with two forms of ecological uncertainty we demonstrate that reserves create a resilience effect that allows for the population to recover faster, and can also raise the harvest immediately following a negative shock. The tradeoff of a larger reserve is a reduced harvest in the absence of a negative shock such that a reserve will never encompass the entire population if the goal is to maximize the economic returns from harvesting, and fishing is profitable. Under a wide range of parameter values with ecological uncertainty, and in the ‘worst case’ scenario for a reserve, we show that a marine reserve can increase the economic payoff to fishers even when the harvested population is not initially overexploited, harvesting is economically optimal and the population is persistent. Moreover, we show that the benefits of a reserve cannot be achieved by existing effort or output controls. Our results demonstrate that, in many cases, there is no tradeoff between the economic payoff of fishers and ecological benefits when a reserve is established at equal to, or less than, its optimum size.

Efficiency in the New Zealand rock lobster fishery: A production frontier analysis

New Zealand's quota management system has been operating since 1986. Evidence based on quota prices supports the effectiveness of rights based management in addressing the twin ills of fisheries management, unsustainable harvest and economic inefficiency. Faced with output controls fishing firms have an incentive improve efficiency. Little is known about efficiency gains within rights‐based systems of governance. This paper looks for evidence of efficiency gains in New Zealand's commercial rock lobster fishery between 1993 and 2002. Confidential firm‐level data are used. The stochastic Cobb‐Douglas production frontier model used to estimate efficiency performed well. Parameter estimates accorded with theory and were significant in each period with the exception of labour in 1993. The industry is not characterised by constant returns to scale. A comparison of the efficiency distribution in 1993 with that obtained in 2002 suggests that the mean level of efficiency has increased over the period and the increase is significant. The within‐year dispersion of efficiency has reduced. These results support the efficiency enhancing incentives associated with rights‐based fishing.

Input and output controls in fisheries management: a plea for more consistency in terminology

Input and output controls in fisheries management: a plea for more consistency in terminology

The influence of formal controls on customer interactivity in new product development

This study examines how formal control mechanisms, specifically output, process, and team reward controls used in new product development (NPD) projects, influence the degree of customer interaction during the project. It is argued that controls can differentially focus the efforts of the project team either internally on the organization's process or externally on the market and its customers. Data from 95 projects across several industries suggest that the use of output control and team rewards leads to higher customer interactivity. However, heavy reliance on process control can lead to reduced customer interactivity if not also accompanied with output controls. This study extends our understanding of using management controls to integrate the voice of the customer into new product development.

Output Substitution in Multi-Species Trawl Fisheries: Implications for Quota Setting

In most multi-species fisheries managed through output controls, total allowable catches (TACs) are set primarily on the basis of biological considerations, usually on a species by species basis. An implicit assumption of management is that fishers are able to adjust their product mix in line with these quotas. If this is not the case, then over-quota catch occurs, leading to either illegal landings or discards. In either case, the effectiveness of the TAC in conserving the resource is reduced. In this paper we show that in the case of multi-species fisheries that exhibit jointness in production, setting TACs on an individual species' basis is inappropriate. In particular, we quantify technical interactions through the estimation of a multi-output distance function for the UK North Sea beam and otter trawl fisheries, and find that in most cases, the potential of substitutability between the main and alternative species is relatively small. We argue that failure to quantify and integrate these technical interactions in the construction of management instruments for fisheries regulation, may result in increased discarding, illegal fishing and potentially lower than expected future yields.

The relative contributions of input and output controls on the performance of a workload control system in Make-To-Order companies

Workload control (WLC) systems can be seen as a natural extension of input-output control systems which allow both the control of jobs into the shop and the control of capacity which affects the flow of finished goods out of the shop. In previous research, it has been shown that WLC can help to reduce manufacturing lead times, even if the total workload processed by the shop in a given time period is maintained at a constant rate. However, the relative contributions of the input control mechanisms versus the output control mechanisms have not been clearly determined. This paper seeks to explore this which affects the flow of finished goods out of the shop. In previous research, it has been shown that WLC can help to reduce manufacturing lead times, even if the total workload processed by the shop in a given time period is maintained at a constant rate. However, the relative contributions of the input control mechanisms versus the output control mechanisms have not been clearly determined. This paper seeks to explore this issue using a simulation of a real job shop, in which the WLC system that has been developed at Lancaster University is used. It explores the use of input control alone and the use of input control plus output control. In addition, the relation between workload and various performance measures, such as lead time, queueing time and capacity utilisation, is explored. The results of the experiments show that one should consider input control and output control as two levers of control that are both to be pulled rather than relying on the single lever of stopping the input when the WIP reaches some preset level.

Upper management control of new product development projects and project performance

While some degree of freedom and flexibility is an essential ingredient to productive cross-functional NPD teams, upper-managers are faced with the challenge of instituting effective control mechanisms which head projects in the right strategic direction, monitor progress toward organizational and project goals, and allow for adjustments in the project if necessary. But too much or the wrong type of control may constrain the team’s creativity, impede their progress, and injure their ultimate performance. Therefore, this study examines formal and interactive control mechanisms available to upper-managers in controlling new product development (NPD) projects, and the relationship between these mechanisms and NPD project performance. Formal output and process controls are examined which consist of the setting and monitoring of outcomes, such as goals, schedule and budgets, and of processes and procedures, respectively. This study also looks at how the effectiveness of these control mechanisms may be contingent upon the degree of innovativeness in the project and the degree to which the project is part of a broad product program. In addition, the use of formal rewards for achieving team performance as opposed to rewards for individual achievement is investigated. Lastly, interactive controls are examined which consist of upper-managers interacting directly with project members in the development of strategy and operational goals and procedures prior to the start of the project, and upper-managers intervening in project decision-making. Questionnaire data are collected on 95 projects across a variety of industries. The findings suggest that while NPD projects teams need some level of strategic direction concerning the objectives to be accomplished and the procedures to be followed, upper-level managers can exert too much control. In particular, the findings showed a negative association between the use of upper manager-imposed process controls and project performance. The findings also indicated that the degree to which upper-managers intervened in project-level decisions during the project was negatively related to project performance. However, the results showed support for the notion that early and interactive decision-making on control mechanisms is important for effective projects. In particular, early team member and upper-management involvement in the setting of operational controls, such as goals and procedures for monitoring and evaluating the project, was positively associated with project performance. This study provides additional insight into our understanding of upper-management support in new product development. The study suggests that upper-managers can over control with the wrong type of controls, and suggests effective ways of implementing participative and interactive control mechanisms.

Upper management control of new product development projects and project performance

While some degree of freedom and flexibility is an essential ingredient to productive cross‐functional NPD teams, upper‐managers are faced with the challenge of instituting effective control mechanisms which head projects in the right strategic direction, monitor progress toward organizational and project goals, and allow for adjustments in the project if necessary. But too much or the wrong type of control may constrain the team's creativity, impede their progress, and injure their ultimate performance. Therefore, this study examines formal and interactive control mechanisms available to upper‐managers in controlling new product development (NPD) projects, and the relationship between these mechanisms and NPD project performance.Formal output and process controls are examined which consist of the setting and monitoring of outcomes, such as goals, schedule and budgets, and of processes and procedures, respectively. This study also looks at how the effectiveness of these control mechanisms may be contingent upon the degree of innovativeness in the project and the degree to which the project is part of a broad product program. In addition, the use of formal rewards for achieving team performance as opposed to rewards for individual achievement is investigated. Lastly, interactive controls are examined which consist of upper‐managers interacting directly with project members in the development of strategy and operational goals and procedures prior to the start of the project, and upper‐managers intervening in project decision‐making.Questionnaire data are collected on 95 projects across a variety of industries. The findings suggest that while NPD projects teams need some level of strategic direction concerning the objectives to be accomplished and the procedures to be followed, upper‐level managers can exert too much control. In particular, the findings showed a negative association between the use of upper manager‐imposed process controls and project performance. The findings also indicated that the degree to which upper‐managers intervened in project‐level decisions during the project was negatively related to project performance. However, the results showed support for the notion that early and interactive decision‐making on control mechanisms is important for effective projects. In particular, early team member and upper‐management involvement in the setting of operational controls, such as goals and procedures for monitoring and evaluating the project, was positively associated with project performance.This study provides additional insight into our understanding of upper‐management support in new product development. The study suggests that upper‐managers can over control with the wrong type of controls, and suggests effective ways of implementing participative and interactive control mechanisms.

The challenge of sustainable use of the Danube Delta Fisheries, Romania

The Danube Delta was designated a Biosphere Reserve in 1990. Subsequently the sustainable use of the fish stocks within the reserve became a challenge for management. The fisheries exploit a variety of habitats distributed over about 580 000 ha of wetland. They yield between 5000 and 10 000 t year–1, equivalent in value to 6.3 million US$, making this one of the most important inland fisheries in Europe. Approximately 15 000 inhabitants within the Delta and a further 160 000 from adjacent regions depend fully or partly on the fishery resource. The fisheries are diverse, consisting of lake, river, marine coastal and anadromous fisheries. Fisheries in the Delta operated under an open access system during the transition from a fully controlled state economy to a market economy. New fishing regulations have been established to minimise the risk of the fisheries collapsing as a result of the open access regime. Core regulations including close seasons and closed areas, minimum mesh sizes and fish lengths, output controls (catch quota), and input regulations (limited access to fishery) were introduced.

Technological Innovation in the Pharmaceutical Industry: The Use of Organizational Control in Managing Research and Development

The literature on the management of R&D professionals strongly advocates managing R&D projects on a project-by-project basis. This literature suggests that projects should be managed differently depending upon project characteristics such as risk, ambiguity, and nonroutineness. While the primary emphasis of the R&D professional literature has been on project teams, the purpose of this study is to examine the impact of organization-wide controls on innovativeness at the firm level. In a sample of 57 pharmaceutical firms, this study investigates the influence of organizational controls on the research and development activities of R&D professionals. This study is one of a handful of studies that simultaneously explores the use of input, behavior, and output controls. Two categories of innovation are considered as dependent variables: incremental innovations in the form of drug enhancements and radical innovations in the form of new drugs. Contrary to existing theory and hypotheses developed in this study, the results show that input, behavior, and output control enhanced radical innovation, and input and output controls enhanced incremental innovation. These results challenge several important features of existing models of R&D management and diverge from common beliefs about R&D management at the project level. While it is commonly accepted that incremental and radical innovation should be managed differently, the results of this study suggest otherwise. In this instance, the management of R&D activities may be considered more similar than previously thought.

The design of fishing-right systems — the NSW experience

In 1994, the Australian state of New South Wales (NSW) passed legislation to introduce a fishery share system. In some ways it is similar to the ‘ITQ’, or individual transferable quota, fishery management systems found in New Zealand, Iceland, Australia, Canada and other countries. The focus of the system, however, is on fisheries rather than species. In most of these fisheries, a combination of input and output controls are used. Special design features include allotment of shares in the ‘fishery’ rather than in quotas, and a structure that forces adaptive resource management. The system is designed to maximise the probability that fishery use will remain both sustainable and consistent with social objectives as they change through time. The system’s conceptual framework is of relevance to other fisheries and, also, many other industries that use natural resources. Consistent with periodically revised management plans, rights to harvest specific amounts of fish or to use certain classes of boats and gear are issued in proportion to the number of shares held in each fishery, “fishery” being flexibly defined by region and habitat, with or without further specification by gear-type, species group or single species. The management plan might, for example, specify a relationship between number of shares and size of boat or net. Any quotas are allocated in proportion to the number of shares held. Subject to compliance with periodically reviewed share conditions, rights are perpetual and give each fisher a direct financial interest in the future of the fishery. Shares are mortgageable and fully transferable. Driven by the management plan, structural adjustment is delegated to the market and individual fishers. A dual property-right structure is used to minimise transfer costs encourage self-enforcement and compliance.

The Economics of Illegal Fishing: A Behavioral Model

This paper analyzes the microeconomic behavior of fishers responding to imperfectly enforced regulations through illegal fishing and efforts to avoid detection. An intraseasonal optimization model is analyzed to determine optimal (profit-maximizing) harvesting strategies at the individual fisher level in response to input controls (such as gear or labor usage) or output controls (individual harvest quotas). For each regulatory option, the analysis explores: (a) the manner by which enforcement affects individual decisions concerning fishing and avoidance activity, (b) the level of enforcement necessary to achieve specified conservation goals, and (c) the role of various behavioral parameters in determining fisher decisions. It is shown, in particular, that the nature of avoidance behavior plays a crucial role in determining fisher response to regulations. Broad implications of illegal behavior on the sustainability of fishery systems are also discussed.

The Effect of Output Controls, Process Controls, and Flexibility on Export Channel Performance

The authors examine international distribution channels in terms of the coordination processes that govern the relationship between export manufacturers and their foreign-based distributors. Although this relationship is mediated by market prices, manufacturers can enhance performance by relying on certain nonmarket forms of governance—control and flexibility—to manage their overseas channel better. The authors develop a model that examines both the contextual antecedents and the performance consequences of these nonmarket governance forms. One form of controls—output control—along with flexibility, is shown to enhance export channel performance, but another control form—process control—has no performance effect.

Population modelling of Tasmanian rock lobster, Jasus edwardsii, resources

From 1980 to 1995, annual catch rates of southern rock lobster (Jasus edwardsii) in Tasmanian waters declined from 1·6 to 0·9 kg per pot lift. From March 1998, the Tasmanian government intends to base management of this fishery on output controls using individual transferable catch quotas. This has necessitated the development of a stock assessment model that can be used to evaluate the relative merits of a variety of alternative catch limits in terms of the trade-off between protecting the rock lobster resource and achieving a high yield. Each of eight regions around Tasmania is assessed separately because of spatial heterogeneity between regions in lobster growth, size at maturity and catch rates. The stock assessment model is size-structured and is fitted to catch, effort and length–frequency data as well as to estimates of exploitation rate from experimental data. A Bayesian estimation framework is employed to estimate the quantities needed for risk analysis. Egg production differs markedly among the eight regions: from as low as 6% of the unexploited equilibrium level in the northern regions, where the growth rate is fast, to more than 80% in the south-west, where the growth rate is slowest.

The Effect of Output Controls, Process Controls, and Flexibility on Export Channel Performance

The Effect of Output Controls, Process Controls, and Flexibility on Export Channel Performance

Stock information requirements for quota management systems in commercial fisheries

Economic inefficiency and other problems associated with managing fisheries through restrictions on fishing times, places and gear have led to development of management systems based on individual fishers' quotas. But this shift from input controls to output controls calls for much more accurate and timely stock assessments. The risk of stock collapse resulting from overfishing, coupled with growing pressure for low-risk resource management policies, call for conservative quota-setting in the face of uncertain stock information. Under existing assessment systems, quotas may need to be so conservative that foregone catches could wipe out the economic gains from quota management. This problem might be overcome by taking advantage of the incentives of quota-holders to contribute to, and invest in, the gathering of information to improve stock assessments.