The Omn

Q1) Identify the devices (controls) that Al Fiorini used to control his business both before and after he went back to school. Classify each control as a results, control, or personnel/cultural type of control.   

   Result control

Determine capacity.

Al must determine the right performance capacity because the objective that are set and the analysis that are made make employee views and cultural of what is important to do. Al must explain AHL’s capacity

Performance level and seeking the target.

By measuring the performance level of the employee Al could have find out the target level of both financial measures and non-financial measures and the employee come to know about the target they have to achieve and how hard they have to work for it.

Rewarding the employees.

By giving rewards in form of bonuses and increases the salary or by giving commission will motivate the employees to achieve the target and will also make employees more loyal and honest towards the business and management.

        Action control

Before going to school:

1. Al used to personally call his clients for the application process.
2.  Al closely audited the loan applications depending on the skill of each officer
3. Al kept an eye on the activities of his loan offers by tracking the number of credit inquiries each requested.

After he went back to school:

1.          He also kept an audit of the account in bank of America through internet from Los Angeles.
2.         Al supervised the head count of each employee, number of leads, credit inquiries, bank activities and loan application operating expenses. By tracking on these information he could held any employee accountable for the desired and undesired action.
3.         Al didn’t let Wilbur to sign the check written against AHL’s main bank account even though he was in partnership with Al

Q2) what went wrong? Did Al use the wrong types of controls? Did he use the right types of controls but fail to design or implement them properly? Or was he just unlucky?

 AHL had no proper directions because they had no code of ethics in their business and had no proper objectives set. The work environment lacked motivation and organisation which are two main part for the smooth running of the business. Al didn’t direct the employee to the correct direction. The employee were not properly taught about the code of ethics and how to work at a corporate level. There was no honesty and cooperate culture in the employee of AHL which could have developed by al. Al should have started the system of giving bonus to employees and motivated them so that they could have been honest and more loyal to the company. Al did not give proper power to the partners and employees. Much of the power were given verbally. The employee and even the partners were not given appropriate managerial function. This was one of the big reason leading to the differences between al and Wilbur.