CONTROLLING

ADS 460

Chapter Outline..
Definition

What to & why control

The relationship between

Controlling & Planning Elements / Criteria of Effective Control Controlling Method Steps in Control Process

Definition of control..
Controlling is the process of

monitoring, comparing, and correcting work performance (Robbins & Coulter). Control is a process of ensuring that actual activities conform to planned activities (Stoner). Controlling is the process of measuring performance and taking action to ensure desired results

Why is control so important? Control is important for three reasons. . Planning Empowering employees Protecting the workplace

The relationship between controlling and planning..

Planning and controlling are linked

because through controlling, managers are able to determine whether the goals and plans established in the planning phase are actually being accomplished.
Planning Organizing Leading Controlling

Tools for Controlling Organizational Performance Feedforward Control A control that prevents anticipated problems before actual occurrences of the problem. Building in quality through design. Concurrent Control A control that takes place while the monitored activity is in progress. Direct supervision: management by walking around.

Tools for Controlling Organizational Performance (contd)

Feedback Control

A control that takes place after an activity is

done.
Corrective action is after-the-fact, when the

problem has already occurred.

Advantages of feedback controls: Provide managers with information on the

effectiveness of their planning efforts.

Enhance employee motivation by providing

them with information on how well they are

Types of Control

The Process of Control..

1. Measuring actual

performance.
2. Comparing actual

performance against a standard.

3. Taking action to

correct deviations or inadequate standards.

The Control Process

Measuring: How and What We Measure Sources of Control Criteria Information (How) (What)
Personal Employees Satisfaction Turnover Absenteeism Budget (Costs,

observation
Statistical

reports
Oral reports Written reports

Output, Sales)

Comparing
To compare measured performance against

the standards established.

How do the desired & actual outcomes differ? The greater the difference between desired

and actual performance, the greater the need for action. Need for action = desired performance actual performance

Taking Managerial Action

Courses of Action
Doing nothing Only if deviation is judged to be

insignificant.
Correcting actual (current) performance Immediate corrective action to correct the

problem at once.
Basic corrective action to locate and to

correct the source of the deviation.

Corrective Actions - Change strategy,

structure, compensation scheme, or

Taking Managerial Action (contd)

Courses of Action (contd)

Revising the standard

Examining the standard to ascertain

whether or not the standard is realistic, fair, and achievable.

Upholding

the validity of the

standard.
Resetting

goals that were initially set too low or too high.

Managerial Decisions in the Control Process

The keys to Successful Control System

Strategic & Results Oriented

Realistic, Positive &

Understanda ble

Timely, Accurate & Objective