Controlling- CHAPTERS 27, 28, & 29

CHAPTER 27

Controlling:• It monitors performance and takes corrective

action when there is a deviation in standards• It ensures that performance is consistent with

plans and the goals and objectives of the department and organization is achieved

• It is performed simultaneously with planning, organizing, staffing, and influencing

• It regulates employee behavior

Three Types of Control systems• Anticipatory

- Proactive approach - Controls are built into the system to prevent mistakes by taking care of

potential problems in advance

• Concurrent- Monitors processes or activities and discovers problems as they

occur

• Feedback- Signals the supervisor after the event has occurred- Helps the supervisor to make improvements on processes and

prevent further deviation and recurrence - it is the least desirable type of control system

Basic Requirements of a Control system

• Be understandable

• Reports deviations quickly and timely

• Be appropriate, adequate, and economical

• Be flexible

• Indicates where corrected action should be applied

CHAPTER 28Four steps in a control model:• The supervisor sets tangible and intangible standards

- Examples of tangible standards are physical and cost standards - Tangible standards are both qualitative and quantitative in nature - Examples of intangible standards are reputation, quality of

medicine, excellence in patient care, level of employee morale - Tools for measuring intangible standards include attitude surveys,

questionnaire, and interviews - It is much more difficult to set intangible standards than tangible standards - Standards state what should be done, are derived from

organizational goals and objectives, and should be expressed in terms that can be measured

Steps in the Control Model Contd.

• The supervisor must check and appraise performance and compare against expected standards on an ongoing basis- Techniques used to measure

performance include direct observation, and oral and written reports

• The supervisor takes corrective action if standards are not met

• The supervisor must follow up to determine the effectiveness of the corrective action

CHAPTER 29

Budgeting as a Control device:

• It is an effective managerial tool

• It is a written plan expressed in dollars and cents, representing income and expenses

• Of all available control devices, the budget is probably the device that the supervisor is most familiar

• Budgets usually cover a one year period

Budgeting Approaches

• Rolling

• Flexible

• Traditional

• Zero-base

Types of Budgets

• Revenue and expense

• Capital

• Cash

Three Approaches in Preparing the Budget

• Pre-approach

• Proof

• Publication