EMAN: CONTROLLING Flashcards
The process of ascertaining whether organizational objectives have been achieved;if not, why not.
CONTROLLING
Determining what activities should then be taken to achieve objectives better in the future.
CONTROLLING
Completes the cycle of management functions.
CONTROLLING
Objectives and goals that are set at the Planning stage are verified as to achievement or completion at any given point in the organizing and implementing stages.
CONTROLLING
When expectations are not met at scheduled dates, corrective measures are usually undertaken.
CONTROLLING
When expectations are not met at scheduled dates, ____________ are usually undertaken.
corrective measures
When properly implemented, it will help the organization achieve its goal in the most efficient and effective manner possible.
IMPORTANCE OF CONTROLLING
Example:
In a factory, each worker is required of the standard to produce a daily output of 100 pieces of the product. All workers who do not produce the requirement are given sufficient time to improve; if no improvements are seen eventually, they are asked to resign. This action will help the company keep its overhead and other costs at expected levels.
If no such control is made, the company will be faced with escalating production costs, which will place the viability of the firm in jeopardy.
IMPORTANCE OF CONTROLLING APPLIED IN THE WORKPLACE
Minimize the bad effects of negative occurrences of mistakes, and shortcomings that occur in the operations.
Proper control measures
STEPS IN CONTROLLING PROCESS
- Establishing performance objectives and standards
- Measuring Actual performance
- Comparing actual performace to objectives and standards
- taking necessary action based on the results of the comparisons.
Establishing performance objectives and standards examples:
- Sales Targets
- Production Targets
- Worker attendance
- Safety record
- Supplies used
expressed in quantity or monetary terms (peso value)
Sales Targets
expressed in quantity or quality
Production Targets
expressed in terms of the rate of absences
Worker attendance
expressed in number of accidents for a given period
Safety record
expressed in quantity or monetary terms for a given period.
Supplies used
Once the objectives and standards are established, the measurement of performance will be facilitated. Methods for measuring performance must be designed and provided with its own method of measurement.
Establishing performance objectives and standards
Once the _______ are established, the measurement of performance will be facilitated.
objectives and standards
____________ must be designed and provided with its own method of measurement.
Methods for measuring performance
There is a need to measure actual performance so that when shortcomings occur, adjustments could be made. adjustments will depend on the actual findings.
Measuring Actual Performance
Example of performance measurements:
-Annual growth rate
-Key Performance Indicators or KPIs
- Actual Production Output
- Market share
- Position in the industry
Example: Target Production output for the month is compared to the actual production output delivered by the operation, and looking at the possible gap that may occur.
COMPARING PERFORMANCE TO OBJECTIVES AND STANDARDS
Illustration:
A construction firm entered into a contract with the government to construct a 100 kilometer road within ten months. It would be, the, reasonable for management to expect at least 10 kilometers to be constructed every month. As such, this must be verified every month, or if possible, every week.
Haler
COMPARING PERFORMANCE TO OBJECTIVES AND STANDARDS
The purpose of comparing the actual with the desired result is to provide management with the opportunity to take corrective action when necessary.
Taking Necessary Action