Controlling Management Function

8/12/2019 Controlling Management Function

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1

Controlling as a

Management Function

Controlling

A process of monitoringperformance and taking action toensure desired results.

It sees to it that the right things

happen, in the right ways, and atthe right time.


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Controlling as a

Management Function

Controlling

Done well, it ensures that theoverall directions of individualsand groups are consistent withshort and long range plans.

It helps ensure that objectives andaccomplishments are consistentwith one another throughout anorganization.


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Controlling as a

Management Function

Controlling

It helps maintain compliance withessential organizational rules andpolicies.


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Figure 8.4 Four steps in thecontrol process.


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The Control Process

Establish objectives andstandards.

Measure actual performance.

Compare results with objectives

and standards. Take necessary action.


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Establish Objectives and

Standards

The control process begins with

planning and the establishmentof performance objectives.

Performance objectives are

defined and the standards formeasuring them are set.


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Establish Objectives and

Standards

There are two types of standards:

Output Standards - measuresperformance results in terms ofquantity, quality, cost, or time.

Input Standards - measures workefforts that go into a performancetask.


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Measuring Actual

Performance

Measurements must be

accurate enough to spotdeviations or variancesbetween what really occurs andwhat is most desired.

Without measurement, effectivecontrol is not possible.


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Comparing Results with

Objectives and Standards

The comparison of actual performance

with desired performance establishesthe need for action.

Ways of making such comparisonsinclude:

Benchmarking


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Taking Corrective Action

Taking any action necessary to

correct or improve things.

Management-by-Exception focusesmanagerial attention on substantialdifferences between actual anddesired performance.


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Taking Corrective Action

Management-by Exception cansave the managers time, energy,

and other resources, andconcentrates efforts on areasshowing the greatest need.

There are two types of exceptions:

Problems- below standard

Opportunities - above standard


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Effective Controls

The Best Controls in Organizations

are

Strategic and results oriented

Understandable Encourage self-control


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Effective Controls

The Best Controls in Organizationsare

Timely and exception oriented

Positive in nature

Fair and objective

Flexible


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Types of Control

Preliminary

Sometimes called thefeedforward controls, they areaccomplished before a workactivity begins.

They make sure that properdirections are set and that theright resources are available toaccomplish them.


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The role of feedforward,

concurrent, and feedback

controls in organizations.


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Types of Control

Concurrent

Focus on what happens duringthe work process. Sometimescalled steering controls, theymonitor ongoing operations and

activities to make sure thatthings are being done correctly.


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Types of Control

Postaction

Sometimes called feedbackcontrols, they take place afteran action is completed. Theyfocus on end results, as opposed

to inputs and activities.


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Types of Controls

Managers have two broadoptions with respect to control.

They can rely on people toexercise self-control (internal)over their own behavior.

Alternatively, managers cantake direct action (external) tocontrol the behavior of others.


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Types of Control

Internal Controls

Allows motivated individuals toexercise self-control in fulfillingjob expectations.

The potential for self-control isenhanced when capable people haveclear performance objectives andproper resource support.


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Types of Control

External Controls

It occurs through personal supervision

and the use of formal administrativesystems.

Performance appraisal systems,

compensation and benefit systems,employee discipline systems, andmanagement-by-objectives.


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What is the

control process?

Internal and external control

Internal control

Allows motivated individuals and groups to

exercise self-discipline in fulfilling job

expectations.

External control

Occurs through personal supervision and the

use of formal administrative systems.


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What are the common

organizational controls?

Management by Objectives (MBO)

A structured process of regularcommunication.

Supervisor/team leader and workers

jointly set performance objectives.

Supervisor/team leader and workers

jointly review results.


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Management by objectives as an

integrated planning and control

framework.


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Organizational Control

Systems

Management Processes

Strategy and objectives

Policies and procedures

Selection and training

Performance appraisal

Job design and work structures

Performance modeling, norms, andorganization culture


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Systems

Compensation and Benefits

Attract talented people andretain them.

Motivate people to exertmaximum effort in their work.

Recognize the value of theirperformance contributions.


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Systems

Employee Discipline

Discipline is defined as influencing

behavior through reprimand.Progressive Discipline ties

reprimand to the severity andfrequency of the employees

infractions.Positive Discipline tries to involve

people more positively and directlyin making decisions to improve theirbehavior.


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What are the common


To be effective, reprimands should

Be immediate.

Be directed toward actions, not personality.

Be consistently applied.

Be informative.

Occur in a supportive setting.

Support realistic rules.


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What are the common


Employee discipline systems

rogressive disciplineties reprimands to theseverity and frequency of the employees

infractions.

Progressive discipline seeks to achieve

compliance with the least extreme reprimandpossible.


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The Hot Stove Rule

Immediate

Focus onactivity notpersonality

Consistent

Informative

Occur in asupportivesetting

Supportrealistic rules

To be Effective Discipline Should be:


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Operations Management

and Control

Project Management

Program Evaluation and ReviewTechnique (PERT) - Identifies andcontrols the many separate eventsin complex projects.


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Operations Management

and Control

Statistical Quality Control

Based on the establishment ofupper and lower control limits,

that can be graphically and

statistically monitored to ensure

that products meet standards.

Documents

Controlling Management Function