Chapter 13: Foundatjons of Control - incomplete Flashcards
What is control?
The management function that involves monitoring activities to ensure that they’re being accomplished as planned and correcting any significant deviations.
What needs to be done in order for managers to know whether their units are performing properly?
Evaluation needs to take place, meaning actual performance must be compared with desired performance.
What dies an effective control system ensure?
That activities are completed in ways that lead to the attainment of the organisation’s goals. The effectiveness of a control system is determined by how well it facilitates goal achievement.
The more a control system helps managers achieve their organisation’s goals, the better it is.
Why is control important?
Because it is the only way that managers know whether organisational goals are being met and if not, the reasons why.
The value of the control function can be seen in 3 specific areas:
. Monitors plans
. Employers employees through plans and feedback
. Protects the business and workplace
Explain the following specific value of the control function: Monitors planning.
Goals are the foundation of planning which provide specific direction to employees and managers. However, just stating goals or having employees accept goals doesn’t guarantee that the necessary actions to accomplish those goals have been taken.
The effective manager follows up to ensure that what employees are supposed to do is being done and goals are being achieved.
As the final step in the management process, controlling provides the critical link back to planning because if managers didn’t control, they’d have no way of knowing whether their goals and plans were being achieved and what future actions to take.
Planning-Controlling Link (Figure 13.1).
PLANNING: Goals Objectives Strategies Plans ⬇️ ORGANISING: Structure Human resource management ⬇️ LEADING: Motivation Leadership Communication Individual and group behaviour ⬇️ CONTROLLING: Standards Measurements Comparison Actions ⬇️ PLANNING: Goals Etc.
Explain the following specific value of the control function: Empowering employees.
Many managers are reluctant to empower their employees because they fear something will go wrong for which they would be held responsible.
But an effective control system can provide information and feedback on employee performance and minimise the chance of potential problems.
Explain the following specific value of the control function: Protecting the workplace.
The final reason that managers control is to protect the organisation and its assets.
Organisation’s face threats from natural disasters, financial pressures and scandals, workplace violence, supply chain disruptions and security breaches.
Managers must protect organisational assets in the event that any of these should happen.
Comprehensive controls and backup plans will help minimise work disruptions.
What is the control process?
A three-step process of
- measuring actual performance,
- comparing actual performance against a standard and
- taking managerial action to correct deviations or to address inadequate standards.
What does the control process assume?
That performance standards already exist.
Performance standards - specific goals created during the planning process.
Explain the control process (Figure 13.2).
Goal ➡️ Standards ➡️ Measure actual performance (MAP) and compare to standard ➡️ Ask questions
Questions:
Is standard being attained? ➡️ YES ➡️ do nothing ➡️ MAP
⬇️
NO ➡️ next question
Is variable acceptable? ➡️ YES ➡️ do nothing ➡️ MAP
⬇️
NO ➡️ next question
Is standard acceptable? ➡️ YES ➡️ identify cause of variation ➡️ correct performance ➡️ MAP
⬇️
NO ➡️ revise standard ➡️ standard (back to start)
What is measuring?
To determine performance, a manager must first get information about it. Thus, the first step in control is measuring.
What are four common sources of information frequently used to measure actual performance?
. Personal observation
. Statistical reports
. Oral reports and
. Written reports.
Each have their own particular strengths and weaknesses, but using a combination of them increases both the number of input sources and the probability of receiving reliable information.
What is personal observation?
It provides firsthand, intimate knowledge of the actual activity - information that is not filtered through others.
It permits intensive coverage because minor as well as major performance activities can be observed, and it provides opportunities for the manager to read between the lines.
MBWA
What is management by walking around (MBWA)?
When a manager out in the work area interacting with employees and exchanging information about what’s going on.
MBWA can pick up factual omissions, facial expressions and tomes of voice that may be missed by other sources.
What are the downfalls of MBWA/Personal observation?
In a time when quantitative information suggests objectivity, personal observation is often considered an inferior information source (it is subject to perceptual biases)
Personal observation also consumes a good deal of time.
Finally, it also suffers from obtrusiveness.
What are statistical reports?
The widespread use of computers has led managers to rely increasingly on statistical reports for measuring actual performance.
However, this measuring device isn’t limited to computer outputs. It also includes graphs, bar charts and numerical displays of any form that managers can use for assessing performance.
What are the downfalls of statistical reports?
Although statistical information is easy to visualise and effective for showing relationships, it provides limited information about an activity.
Statistics report on only a few key areas and may often ignore other important, often subjective, factors.
What are oral reports?
Information can also be acquired through oral reports - that is, through conference meetings, one-to-one conversations or telephone calls.
In employees-oriented organisations where employees work closely together, this approach may be the best way to keep tabs on work performance.
What are the benefits and downfalls of oral reports?
The advantages and disadvantages of this method of measuring performance are similar to those of personal observation.
Although the information is filtered, it is fast, allows for feedback and permits expression and tone of voice as well as words themselves to convey meaning.
On of the major downfalls of oral reports has been the problem of documenting information for later reference. However, this has improved as oral reports can be efficiently taped and become permanent as it they were written.
What are written reports?
Like statistical reports, they are slower yet more formal than firsthand or secondhand oral measures.
This formality also often gives them greater comprehensiveness and conciseness than found in oral reports.
In addition,merit ten reports are usually each to catalogue and reference.
What do managers measure?
WHAT managers measure is probably more critical to the control process than HOW they measure.
This is because the selection of wrong criteria can result in serious dysfunctional consequences. Furthermore, what is measured determines, to a great extent, what people in the organisation will attempt to excel at.
What is some control criteria applicable to any management situation?
. Direct the activities of others . Employee satisfaction . Turnover and absenteeism rates . Budgets . Costs . Production rates
What can managers do when faced with activities that are difficult to measure?
Most activities can be broken down into objective segments that allow for measurement. The manager needs to determine what value a person, department or unit contributes to the organisation and then convert the contribution into standards.
