Chapter 18 Monitoring and Controlling Flashcards
Controlling
the process of monitoring, comparing, and correcting work performance
The purpose of control
to ensure that, going forward, activities are completed in ways that lead to the accomplishment of organizational goals
The Final Link of management functions
Feedback on performance
Planning (effectivenesss)
controls let manages know whether their goals and plans were effective and what future actions to take
Employees/systems (efficiency)
controls systems provide manages with information and feedback on performance
Protecting the workplace/organization
controls help minimize workplace disruptions (from employees, customers, supply chain, outside forces)
Planning-controlling link
Controlling link is the final one then back to planning
The process of control
- Measuring actual performance
- Comparing actual performance against a standard
- Taking managerial action to correct deviations from goals (standards) or improve inadequate standards
Step 1: Measuring actual perfrmance
How and what we measure
Information sources (How)
- Personal observation
- statistical reports
- oral reports
- written reports
Control Criteria (what)
- Employees: satisfaction/turnover, absenteeism
- Productivity: Costs/output
- Budgets: Costs/sales
- Customers: Satisfaction/complaints
Personal Observations
Benefits: Information isn’t filtered
Drawbacks: subject to personal biases
Statistical Reports
Benefits:
- Fast way to get information
- Allow for verbal and non verbal feedback
- Effective for showing relationships
Drawbacks
- Ignore subjective factors
- Information is filtered
Written reports
Benefits:
- Formal
- Easy to file and receive
Drawbacks
- Takes more time to prepare
Step 2:
Comparing Actual performance against the set standard
Range of variation
determine the acceptable parameters of variance (deviation) between actual performance and the standard (or goal)
Deviations that exceed the acceptable range of variation need a manager’s attention
Step 3
Taking Managerial action
Immediate corrective action
Correcting problems at once without much analysis, in order to get performance back on track immediately
puts out fires (short term solutions)
gets performance back on track temporality
Basic Corrective Action
corrective action that analyzes how and why performance deviated, before correcting the source of deviation
results in long term/permanent fixes
Six (Basic) areas of organizational control
Physical: buildings, equipment, vehicles etc.)
Human resources
Informational (schedules, analyzes, reports )
Financial
Structural (chain of command)
Cultural (organizational)
Disciplinary (corrective) actions
actions taken by a manager to enforce the organizations work standards and regulations
Progressive Disciplinary action
Must be immediate/timely to be effective (must be documented)
Delivering effective performance feedback
managers need to provide their employees with (timely) feedback so that employee’s know where they stand in terms of their work performance, reinforcement theory
Attendance
absenteeism, tardiness, abuse of sick leave
On the job behaviors
insubordination, failure to use safety devices, alcohol or drug abuse
Dishonesty
theft, lying to supervisors, falsifying information on employment application or on other organizational forms
Outside activites
criminal activities, unauthorized strike activities, working for competing organization (if no compete clause is part of employment)
Organizational Performance
the accumulated results of all the organizations work activities
Goals should neither be too easy nor too difficult to attain. Revise the standard if goal is too easy
Goals must be realistic and fair to all stakeholders.
If performance is not up to par, don’t immediately blame the goal or the standard.
The overall goal should be, must be, continuous improvement!
Organizational effectiveness
a measure of how appropriate organizational goals are and how well those goals are being met
Productivity (efficiency)
the amount of goods or services divided by the inputs (costs, time) needed to generate that output)
boiled frog phenomenon
recognizing performance declines by watching out for subtly declining situations
Managing performance downturns
Recognizing crisis —avoid the boiled frog phenomenon
- Lack of clear, effective goals
- Negative trends (cash flow, productivity, etc)
- Excess employees/capacity
- Tolerance of work incompetence/poor quality
- Fear of conflict and risk taking
- Poor communications within the organization/work units
- Unnecessary/cumbersome administrative procedures
Feed forward control
control that takes place before a work activity is done (effective planning- a key control)
Concurrent control
control that takes place while a work activity is in progress (efficiency)
management by walking around - a term used to describe when a manager is in the work area interacting with employees
Feedback control
control that takes place after a work activity is done (efficiency/ effectives control)
can be affective motivational tools
Management information system (MIS)
a system used to provide management with needed information on a regular (immediate) basis
Data
an unorganized collection of raw, unanalyzed facts
information
data that has been analyzed and organized such that is has value/ relevance to managers
Social media as a control tool
service quality influences customer perceptions of value
Balanced Scorecard
a perfrmance measurement tool that examines more than just the financial perspective (i.e. Organizational effectiveness)
Measures a company’s performance in four areas:
- Financial
- Customers
- Internal processes
-People/innovation/growth
Board of directors
a commitment to governance practices that increase integrity and accountability of companies and organizations
Measures a company’s performance in:
- Financial Reporting
- Corporate Compliance – making sure an organization and its employees follow laws, regulations, standards and ethical practices.
Potential issue: members of the Board are selected by management of the business/organization
