Foundations of Control-Prince Dudhatra-9724949948

8/7/2019 Foundations of Control-Prince Dudhatra-9724949948

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Robbins et al., Fundamentals of Management, 4th Canadian Edition2005 Pearson Education Canada, Inc. FOM 7.1

Chapter 18

Foundationsof Control


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Learning Outcomes Define control

Describe three approaches to control Explain why control is important

Describe the control process

Distinguish among the three types ofcontrol (continued)


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Learning Outcomes

(continued) Describe the qualities of an effective control

system

Identify contingency factors in the control

process

Describe how national differences influence

the control process (continued)


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Robbins et al., Fundamentals of Management, 4th Canadian Edition

2005 Pearson Education Canada, Inc. FOM 7.4

Learning Outcomes

(continued) Identify the ethical issues in employee

monitoring Describe how an entrepreneur controls for

growth


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Controlling

Controlling is the process ofmonitoring, comparing, and

correcting work performance.


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IMPORTANCE

Controlling helps the organization in achieving objectives.

Controlling helps in improving adaptability to environmental change.

Controlling helps in coping with organizational complexity.

Controlling helps in maintaining and improving quality.

Controlling helps in financial matter.

Controlling helps in improving employees performance.

Controlling helps in monitoring sales.

Controlling helps in minimizing errors.


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Planning-

Controlling

Linkage

Planning

OrganizingLeading

Controlling


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PROCESS OF CONTROLLING

Setting up of standards.

Measurement of performance. Comparison of performance with

standards.

Taking corrective action.


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Purpose of Contro

ls

Measuring PerformanceMeasuring Performance

Comparing to StandardsComparing to Standards

Taking Corrective ActionTaking Corrective Action

Goals andGoals and

ObjectivesObjectives

OrganizationalOrganizational

DivisionalDivisional

DepartmentalDepartmental

IndividualIndividual


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Approaches to Control Market

Bureaucratic Clan


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The ControlProcessThe ControlProcess

Identify

Causes

Correct

Performance

Variance

Acceptable?

Revise

Standard

StandardAttained?

Standard

Acceptable?

Yes

Yes

Yes

No

No

No

Compare

Performance

to Standard

Measure

Performance

Objectives

Standard

Do Nothing

Do Nothing


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Discrepancies Between Goals and Performance

AcceptableAcceptable

Upper LimitUpper Limit

StandardStandard

AcceptableAcceptable

Lower LimitLower Limit

AcceptableAcceptableRange ofRange of

VariationVariation

t t+1 t+2 t+3 t+4 t+5t t+1 t+2 t+3 t+4 t+5


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Canuck Brews Sales for July

(in hundreds of cases)

Propeller

Big RockAle

Okanagan Spring

Garrison

Olands Export

McAuslans

Granville IslandUnibroues

NelsonAfterDark

Total Cases

1,075

630

800

620

540

160

22580

170

4,300

913

634

912

622

672

140

22065

286

4,464

(162)

4

112

2

132

(20)

(5)(15)

116

164

Brand Standard Actual Over (Under)


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Do Not

hing

Do Not

hing

TakingTaking

ManagerialManagerialActionAction

Immediate/BasicImmediate/Basic

CorrectiveCorrective

ActionAction

ReviseRevise

the Standardthe Standard


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How Do Managers Measure? Personal

observations

MBWA(management-by-

walking about)

Statistical reports

Oral reports

Written reports


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What Do Managers Measure? Information

Operations Finances

People


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Feedback Control

Meaningful

information Enhance employee

motivation


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Flexibility

Qualities Of An Effective

Control System

StrategicPlacement

UnderstandabilityReasonable

Criteria

EFFECTIVE

CONTROL

SYSTEM

TimelinessMultiple

Criteria

Corrective

ActionAccuracy

EconomyEmphasis on

Exceptions

FOM 7.17




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Contemporary Issues in

Control Rights that manager has to monitor

employee behaviour

Rights that manager has to control

private lives of employees.

Employers MAY be able to control

employee behaviour outside the workenvironment


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You and Your Computer Employers can read your e-mail

Employers can listen to your phone

calls

Employers can monitor your work by

computer


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InformInform

EmployeesEmployees

Written PolicyWritten Policy

Monitor forMonitor for

Business ReasonsBusiness Reasons

Control andControl and

EthicsEthics


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Entrepreneurs Controlling for

Growth Plan for growth

Organize for growth

Control for growth


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BIBLIOGRAPHY Fundamentals of Management- By Stephen Robbins

Publications- 4th Canadian edition 2005

www.wikipedia.com Principles of Management- By Prasad L.M.

Principles of Management- By Chabra T.N

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Foundations of Control-Prince Dudhatra-9724949948