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CHAPTER 6:CONTROLLING

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The mechanisms used to monitor the

organizations performance relativeto its goals and plans.

(Lewis, 2004)

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Monitoring the performance of the

organization, identifying deviations

(differences) between planned and actual

results, and taking corrective action when

necessary.

(Lewis, 2004)

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THE CONTROLLING PROCESS

1. Set Performance Standards

Whenever possible, the standards should be set in a

manner that allows them to be compared with actual

performance.

2. Measure Actual Performance

An organization must decide:

What to measure.

When to measure.

How frequently to measure.

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3. Compare Actual Performance with Standards

This step involves determining if actual

performance compared to standards falls within

acceptable limits.

4. Responding to Deviations

If the deviation from performance is

unacceptable, then corrective action is

warranted. If the deviation is acceptable, no correction

action is necessary.

THE CONTROLLING PROCESS

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TYPES OF CONTROL

1.Pre-action control (Feed-forward)

2.Steering control

3.Screening control (Yes or No control)

4.Post-action control (Feed back)

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1.Pre-action control (Feed-forward)

input level of production

before the start of production activities.

purpose - to anticipate potential

problems and preventing them.

E.g.: Production/ Finance/ Marketing /

Human Resources -specifications of

output/input factors

TYPES OF CONTROL

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2.Steering control

Focus on what occurs during the work

process. Primary goal- to spot problems and take

corrective action before final results

achieved.

E.g.: HIV-AIDS

TYPES OF CONTROL

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3.Screening control (Yes or No control)

Specify checkpoints- must be successfully passed

before an activity proceeds further.

Before proceeding to the next sequence, an

activity must be approved or meet specific

condition.

E.g. : Bank & Financial , procedure, approval of

PTPTN.

TYPES OF CONTROL

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4.Post-action control (feed back)

After an action is completed.

Attempts to measure the result of certain

actions.

If problems, corrective action taken and

applied to future activities and actions.

TYPES OF CONTROL

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SELECTING THE FOCAL POINT

FOR CONTROL

1.Preventive Control

Focuses on detecting undesirable material, financial,

or human resources that serve as inputs to the

transformation process.

2.Concurrent Control

Focuses on the transformation process to ensure that

it is functioning properly.

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3. Feedback Control

Focuses on discovering undesirable output and

implementing corrective action.

4.Multiple Focal Points

Most organizations use several control systemsfocused on various phases of the transformation

process.

SELECTING THE FOCAL POINT

FOR CONTROL

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POTENTIAL BARRIERS TO

SUCCESSFUL CONTROL

1. Over control

2. Inappropriate control

3. Reward for inefficiency

4. Too much accountability

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MAKING CONTROLLING SUCCESSFUL

1. Accurate

A control system that generates inaccurate informationcan result in managements neglecting to take action when

it should or responding to a problem that does not exist.

An accurate control system is reliable and produces valid

data.

2. Timely

Corrective action must be taken in time to produce

improvements. Late corrective action means a great loss

to the company.

3. Objectively and comprehensive

Standards must be understandable and measurable. It

must not be subjective or vague.Difficult control system

will cause mistakes and frustration among managers as

well as employees.

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4. Focused on strategic control points Strategic and result oriented

Long term and based on outcomes or result

5. Flexible

Individual judgment

Modified to fit new circumstances as they

arise.

Based on findings of situation

6. Consistent with the organizations structure.

Exercised Controlling at all levels of

management.

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7. Economically realistic.

Cost should be smaller than the benefits

derived from it.

8. Reasonable and attainable criteria.

If theyre too high or unreasonable, they no

longer motivate to achieve.

MAKING CONTROLLING SUCCESSFUL

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THE END..........