Controlling & Evaluating Flashcards
After strategies are set and plans are made, management’s primary task is to ensure that these plans are effectively carried out.
CONTROL FUNCTION OF MANAGEMENT
The P-O-L-C-E Framework means
Planning
Organizing
Leading
Controlling and Evaluating
is the process of assessing the organization’s progress toward accomplishing its goals; includes monitoring the implementation of a plan and correcting deviations from the plan
CONTROLLING
WHY ARE CONTROLS NEEDED
To guard against undesirable behavior and to encourage desirable actions.
WHAT IS GOOD CONTROL?
future oriented, multidimensional, achieves good performance, may not be economically desirable
helps compare performance with a standard and to initiate corrective action.
Feedback information
CONTROL TECHNIQUES
Budgetary Control
Non-budgetary Control Devices
Control of Specific Actions
Control of Results
Control of Personnel
is the formulation of plans for a given future period expressed in financial terms.
Budgeting
serve as yardsticks for measuring performance and facilitate comparisons across divisions, between levels in the organization, and from one time to another.
Budgets
Non-budgetary Control Devices
Operational audit/internal audit
Milestone budgeting
the regular and independent appraisal of the accounting, financial, and other operations of an enterprise by internal auditors
Operational audit/internal audit -
are identifiable segments, and when a given segment is accomplished, its cost or other results can be determined
“milestones”
involves an examination and verification of records and supporting documents.
AUDIT
provides information about where the organization is with respect to what was planned or budgeted for.
budget audit
might try to determine whether the figures reported are a reflection of actual performance.
Performance audit
attempts to ensure that individuals perform (or do not perform) certain actions that are known to be desirable (or undesirable).
Control of Specific Actions
can be accomplished by focusing on results accountability, holding employees responsible for certain results.
Control of Results
emphasizes a reliance on the personnel involved to do what is best for the organization, and it provides assistance for them as necessary
Control of Personnel
TYPES OF CONTROL
Proactivity (feedforward control)
Concurrent Controls
Feedback Controls
Behavioral controls
Outcome controls
can be defined as the monitoring of problems in a way that provides their timely prevention, rather than after the fact reaction. * For instance: preventive maintenance equipment
Proactivity (feedforward control)
- is the process of monitoring and adjusting ongoing organizational activities and processes.
Concurrent Controls
Involve gathering information about a completed activity, evaluating that information, and taking steps to improve the similar activities in the future
Feedback Controls
involve the direct evaluation of managerial and employee decision making, not the results of managerial decisions.
Behavioral controls
are manifested by the result of the organization’s activities.
Outcome controls
