Samuel C.

Certo
Modern Management, 12th Edition

21
chapter

Principles of Controlling

1
Student Learning Objectives

From studying this chapter, I will attempt to acquire:

A definition of control.

A thorough understanding of the controlling

subsystem.

An appreciation for various kinds of control and for

how each kind can be used advantageously by
managers.

Insights into the relationship between power and

control.
2
Student Learning Objectives

From studying this chapter, I will attempt to acquire:

Knowledge of the various potential barriers that
must be overcome to implement successful control.

An understanding of steps that can be taken to

increase the quality of a controlling subsystem.

3
Controlling

Controlling is the process managers go through

to control. It is a systematic effort to compare
performance to predetermined standards, plans,
or objectives to determine whether performance
is in line with those standards or needs to be
corrected.

4
Relationship Between Overall Management
System and Controlling Subsystem
OVERALL
MANAGEMENT CONTROLLING
SYSTEM SUBSYSTEM

Input Input

Process
Process

Output Output

5
Types of Control
Three types of management control are possible:

Precontrol is control that takes place before

some unit of work is actually performed.

Concurrent control is control that takes place

as some unit of work is being performed.

Feedback control concentrates on the past

organizational performance.

6
The Controller

The controller is the staff person whose basic

responsibility is to assist line managers with
the controlling function by gathering appro-
priate information and generating necessary
reports that reflect this information.

7
Power
Power is the extent to which an individual is able to
influence others so that they respond to orders.

Total power is the entire amount of power an individual

in an organization possesses. It is made up of
position power and personal power.

Position power is power derived from the organizational

position a manager holds.

Personal power is the power derived from a manager’s

relationships with others.

8
Steps for Increasing Total Power
To increase personal power, a manager should attempt to develop
the following attitudes and beliefs in other organization members:

A sense of obligation toward the manager

A belief that the manager possesses a high level of

expertise within the organization

A sense of identification with the manager

9
Potential Barriers to Successful
Controlling
 Control activities can create an undesirable overemphasis
on short-term production as opposed to long-term
production.
 Control activities can increase employee frustration with
their jobs and thereby reduce morale.
 Control activities can encourage the falsification of reports.
 Control activities can cause the perspective of
organizational members to be too narrow for the good of
the organization.
 Control activities can be perceived as the goals of the
control process, rather than the means by which corrective
action is taken.
Making Controlling Successful
Managers should make sure that:
 Various facets of the control process are appropriate
for the specific organizational activity being focused
on.
 Control activities should be used to achieve many
different kinds of goals.
 Information should be used as the basis for taking
corrective action that is timely.
 The mechanics of the control process should be
understandable to all individuals who are in any way
involved with implementing the process.