lesson 13 ( controlling) Flashcards
define controlling
Management function that involves monitoring, comparing, and correcting work performance.
what effictive controlling ensures?
Effective controls ensure that activities are completed in ways that lead to the attainment of goals.
Whether controls are effective, then, is determined by how well they help employees and managers achieve their goals
why controlling is important?
- planning
- empowering employees
- protecting the workplace
why Planning and controlling link together?
what are the 3 steps process of controlling?
- measuring actual performance
- comparing actual performance against a standard
- taking managerial action to correct deviations or inadequate standards
step 1 : Measuring Actual Performance
how to mesure?
- personal observations
- statistical reports
- self-monitoring computers
- oral reports
- written reports
what to mesure?
1. what is measured often determines what employees will do.
Step 2: Comparing Actual Performance Against the Standard
- Range of variation:
the acceptable parameters of variance between actual performance and the standard
Step 3: Taking Managerial Action
Correct actual performance——»
- Immediate corrective action:
corrective action that corrects problems at once to get performance back on track - Basic corrective action:
corrective action that looks at how and why performance deviated before correcting the source of deviation
revise the standard
If performance consistently exceeds the goal, then a manager should look at whether the goal is too easy and needs to be raised.
Managers must be cautious about revising a standard downward.
Organizational Performance
Performance: end result of an activity
organizational perfomance: the accumulated results of all organizational work activities
Measures of Organizational Performance
Organizational Productivity: : the amount of goods or services produced divided by the inputs needed to generate that output
Organizational effectiveness: a measure of how appropriate organizational goals are and how well those goals are being met
Controlling for Employee Performance
Disciplinary action: actions taken by a manager to enforce the organization’s work standards and regulations
Progressive disciplinary action: an approach to ensure that the minimum penalty appropriate to the offense is imposed
what are types of discipline problems?
- attendance: absenteeism, tardiness, abuse of sick leaves
- on the job behaviours: insubordination, faliure to use safety devices, alcohol or drug abuse
- dishonesty: theft, lying to supervises, falsifying information on CV or any other organizational form
- outside activities: criminal activities, working for a competeing organization
Feedforward/Concurrent/Feedback Controls
- Feedforward control: control that takes place before a work activity is done ( input)
- Concurrent control: control that takes place while a work activity is in progress (process)
- Management by walking around: a term used to describe when a manager is out in the work area interacting directly with employees
- Feedback control: control that takes place after a work activity is done (output)
FINANCIAL CONTROLS
Traditional controls
- Ratio analysis:
* Liquidity
* Leverage
* Activity
* Profitability - Budget analysis:
* Quantitative standards
* Deviations
Information Controls
Management information system (M I S): a system used to provide management with needed information on a regular basis
Data versus information
Balanced Scorecard
a performance measurement tool that looks at more than just the financial perspective
focsues on
- customer
- internal business
- financial
- learning and growth
Benchmarking of Best Practices
Benchmarking: a performance measurement tool that looks at more than just the financial perspective
Benchmark: the standard of excellence against which to measure and compare
Social Media as a Control Tool
Facebook, Twitter, and other social media platforms can be a valuable tool to gather feedback
Recent examples helped government officials provide flood and fire information and direct resources during natural disasters
Global Differences in Control
- Distance creates formalized controls, e.g. formal reports
- Impact of technology
- Constraints due to local laws
- Comparability issues in data collection
- Be prepared for global turmoil and disasters
Workplace Privacy
Employers can read your email, tap your telephone, monitor your work by computer, store and review computer files.
why companies monitor?
- Productivity/internet traffic
- Concerns about offensive/inappropriate material
- Protecting company secrets
define Employee Theft
any unauthorized taking of company property by employees for their personal use
Corporate Governance
the system used to govern a corporation so that the interests of corporate owners are protected
- The role of boards of directors
- Financial reporting and the audit committee
- Compliance offices and positions
