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
3 possible courses of action:
1. Do nothing
2. Correct actual performance
3. Revise the standards
Taking managerial action
correct problems at one
Immediate corrective action
investigate the cause first before correcting
Basic corrective action
Used when standards are unrealistic
Revise the standards
