4 - CONTROLLING PROCESS Flashcards
Why is Controlling Important?
Control is important because it’s the only way that managers know whether organizational goals are being met, and if not, the reasons why
- The process of monitoring, comparing, and correcting work performance
- The final link in the functional chain of management activities
- The process of looking back
Controlling
- It allows the manager to know if the organizational goals are being met, and if not, the reasons why
- It empowers employees through feedback on employee performance
- It protects the organization and its assets
Importance of Controlling
- Monitor and ensure that the organization’s performance is living up with the expectation of the management
- Correct below-standard conditions and bring results up to expectations
Roles of Supervisors
Types of Control
- Feedforward Control
- Concurrent Control
- Feedback Control
- AKA pre-action control
- Focuses on operations before they begin
- Serves as the preventive measure of the organization on its anticipated problems
Feedforward Control
- Enacted while work is being performed
- Includes any type of guiding mechanism such as:
1. Direct supervision - “Management by walking around”
3. Automated systems
4. Organizational quality programs
Concurrent Control
- AKA post-action control
- Disadvantage: the problem has already occurred, meaning that there is already damage/waste
- Advantages:
- Provides meaningful information on how effective the planning efforts were
Feedback Control
Control Process
Step 1: Measuring Actual Performance
Step 2: Comparing Actual Performance Against Standard
Step 3: Taking Managerial Action
- Possible approaches
1. Personal observations
2. Statistical reports
3. Oral reports
4. Written reports - Must include control criteria
1. Time controls
2. Financial controls
3. Operation controls
4. Material controls
Measuring actual performance
Advantages:
* Get firsthand knowledge
* Information isn’t filtered
* Intensive coverage of work activities
Disadvantages:
* Subject to personal biases
* Time-consuming
* Obtrusive
Personal Observations
Advantages:
* Easy to visualize
* Effective for showing relationships
Disadvantages:
* Provide limited information
* Ignore subjective factors
Statistical Reports
Advantages:
* Fast way to get information
* Allow for verbal and nonverbal feedback
Disadvantages:
* Information is filtered
* Information can’t be documented
Oral Reports
Advantages:
* Comprehensive
* Formal
* Easy to file and retrieve
Disadvantages:
* Take more time to prepare
Written Reports
- Determines the variation between actual performance and the standard
- Acceptable range of variation
1. The acceptable parameters of variance between AP and Std
2. Excess variation will require managerial action
Comparing actual performance against the standard